Sales Tax

Far and Wide Broadband provides Internet connection services to customers living in remote areas. During February 2020, it billed a customer a total of $295,000 before taxes. Weston also must pay the following taxes on these charges:

1. State of Kansas sales tax of 6%
2. Federal excise tax of 0.2%
3. State of Kansas excise tax of 0.4%

Required:

Assuming Far and Wide collects these taxes from the customer, what journal entry would Far and Wide make when the customer pays their bill? If an amount box does not require an entry, leave it blank.

Exercise 16-29 (Algo) Multiple differences; multiple tax rates [LO16-2, 16-3, 16-5, 16-6]

Case Development began operations in December 2021. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2021 installment income was $960,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2022–2024 are as follows:

Case also had product warranty costs of $420,000 expensed for financial reporting purposes in 2021. For tax purposes, only the $100,000 of warranty costs actually paid in 2021 was deducted. The remaining $320,000 will be deducted for tax purposes when paid over the next three years as follows:

Pretax accounting income for 2021 was $1,060,000, which includes interest revenue of $30,000 from municipal bonds. The enacted tax rate for 2021 is 20%.

Required:
1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2021 income taxes.
2. What is Case’s 2021 net income?
  

(Please show the calculation) Case Development began operations in December 2021. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2021 installment income was $888,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2022–2024 are as follows:

2022 $300,000 20%

2023 324,000 25%

2024   264,000 25%

Case also had product warranty costs of $352,000 expensed for financial reporting purposes in 2021. For tax purposes, only the $84,000 of warranty costs actually paid in 2021 was deducted. The remaining $268,000 will be deducted for tax purposes when paid over the next three years as follows:

2022 $100,000

2023    88,000

2024 80,000

Pretax accounting income for 2021 was $1,016,000, which includes interest revenue of $26,000 from municipal bonds. The enacted tax rate for 2021 is 20%.

1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2021 income taxes.

2. What is Case’s 2021 net income?

3. Assume that all of Case’s deferred tax assets and liabilities are in the same tax jurisdictions. How should the deferred tax amounts be shown on Case’s balance sheet?

Case Development began operations in December 2021. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2021 installment income was $888,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2022–2024 are as follows:

2022

2023

2024

$300,000 20% 324,000 25 264,000 25

Case also had product warranty costs of $352,000 expensed for financial reporting purposes in 2021. For tax purposes, only the $84,000 of warranty costs actually paid in 2021 was deducted. The remaining $268,000 will be deducted for tax purposes when paid over the next three years as follows:

2022 $100,000

2023. 2023 88,000

2024. 2024 80,000

Pretax accounting income for 2021 was $1,016,000, which includes interest revenue of $26,000 from municipal bonds. The enacted tax rate for 2021 is 20%.

Required:

1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2021 income taxes.

2. What is Case’s 2021 net income?

3. Assume that all of Case’s deferred tax assets and liabilities are in the same tax jurisdictions.

   How should the deferred tax amounts be shown on Case’s balance sheet?

Case Development began operations in December 2021. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2021 installment income was $780,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2022–2024 are as follows: 2022 $ 240,000 20% 2023 300,000 25 2024 240,000 25 Case also had product warranty costs of $250,000 expensed for financial reporting purposes in 2021. For tax purposes, only the $60,000 of warranty costs actually paid in 2021 was deducted. The remaining $190,000 will be deducted for tax purposes when paid over the next three years as follows: 2022 $70,000 2023 64,000 2024 56,000 Pretax accounting income for 2021 was $950,000, which includes interest revenue of $20,000 from municipal bonds. The enacted tax rate for 2021 is 20%.

Required:

1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2021 income taxes.

2. What is Case’s 2021 net income?

3. Assume that all of Case’s deferred tax assets and liabilities are in the same tax jurisdictions. How should the deferred tax amounts be shown on Case’s balance sheet?

On July 25, 2019 Starbucks announce that it would raise its full-year financial outlook due to strong performance. Starbucks is a global provider of exceptional products that include more than 30 blends and single origin premium coffee’s hand-crafted beverages merchandise such as coffee and tea brewers consumer products good sold in grocery stores and other retail outlets and fresh foods.

The company’s mission is to inspire and nurture the human spirit one person one cup and neighborhood at a time Starbucks 2018 Starbucks has more than 22,500 stores across the world in over 50 different countries. The company has successful brands such as Starbucks coffee Seattle’s best coffee, Teavana, Tazo, Evolution Fresh, LaBoulange, Ethos Water, and Torrefazione Italia Coffee.

In 2019 Starbucks had revenues of 26.5 billion and an operating income of 4.07 billion the revenue is broken down as follows beverages = 74%, food = 20%, packed & single serves coffee = 1%, and other serveware and ready to drink beverages equals 5% major competitors of Starbucks include but are not limited to Dunkin Brands group Inc. Jacobs Douwe Egberts jamba juice company krispy kreme doughnuts inc. Luigi lavazza S.p.A Mcdonalds corporation nestle SA panera bread company peet’s coffee & tea inc and the J.M. Smucker Co.

Given your understanding of the Company and industry described above address the following questions

a) Identify the most likely business level strategy the company is pursuing as its primary business level strategy take care to offer at least three supporting arguments/statements.

b) Given the company described above please describe the competitive rivalry and dynamics this from faces please offer at least two supporting statements or points for each (4 in total)

c) Describe the level of diversification pursued by the company and offer at least two supporting points to justify your classification. Label your answers

Scott Company had sales of $12,350,000 and related cost of goods sold of $7,500,000. Scott provides customers a refund for any returned or damaged merchandise. At the end of the year, Scott estimates that customers will request refunds for 0.8% of sales and estimates that merchandise costing $48,000 will be returned.

Journalize the adjusting entries on December 31 to record the expected customer returns. Refer to the Chart of Accounts for exact wording of account tit

CHART OF ACCOUNTSScott CompanyGeneral Ledger

Journalize the adjusting entries on December 31 to record the expected customer returns. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

Martin MFG company uses balance sheet approach to calculate allowance for doubtful accounts and bad debt expense. Current policy is to reserve 20% gross accounts receivable as an allowance for uncollectible accounts.

Martin MFG company issued 10% stated rate bonds in 2020. Effective market rate of interest for these bonds is 8%.

Select all statements that are true regarding the information above. Ignore taxes and any cost of goods sold.

Reducing the percentage of gross accounts receivable reserved in the allowance for uncollectible accounts will increase net income

Increasing the percentage of gross accounts receivable reserved in the allowance for uncollectible accounts will increase net income

Reducing the amount of accounts receivable written off by $1,000 will increase net income

Increasing the amount of accounts receivable written off by $1,000 will increase net income

If given option to deliver inventory in either 2020 or 2021 waiting to deliver inventory to customers until 2021 will increase revenue in 2020

If given option to deliver inventory in either 2020 or 2021 delivering inventory to customers in 2020 will increase revenue in 2020

Using income statement approach to calculate bad debt expense will always result in lower bad debt expense versus the balance sheet approach

Using direct write off method to calculate bad debt expense will always result in lower bad debt expense versus the balance sheet approach

Increasing the stated rate of the bonds would have increased the price of the bonds at issuance

Increasing the market rate used to price the bonds would have increased the price of bonds at issuance

Present value of bonds issued is higher than face value

Present value of bonds issued is lower than face value

I would just like to know if ANOVA would be the correct test to use for the following problem below?

Fancy Fish, a fine dining upscale restaurant in Northridge, California and 2016 Open Table Diners’ Choice award winner, is enjoying its eighteenth season of providing delectable food, exceptional service, and beautiful outdoor dining experiences. “Saturday - Half-off Bottled Wine Night” has made Fancy Fish one of the San Fernando Valley’s favorite restaurants. Every Saturday night, guests can enjoy half-off every bottle of wine on the wine list while dining in the restaurant or on the terrace. The owner began offering “Saturday - Half-off Bottled Wine Night” in 2010 as an incentive for guests to dine at Fancy Fish when the economy was in a recession. Now that the economy is booming, the owner is considering whether the promotion should be continued, or even expanded. One concern is the effect that the promotion is having on the overall revenue generated from sales to the participants.

A random sample of 28 checks was collected over the course of one month of Saturday nights. Fourteen checks were from customers participating in the half-off promotion, and the other 14 checks were from customers not participating. The total revenue from each check (less alcohol, tax, and tip) is presented below. Do these data present sufficient evidence that the checks of participants is significantly different from checks of non-participants? What is your recommendation to the owner regarding the status of the promotion?

On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:
  

During January 2018, the following transactions occur:
  

The following information is available on January 31, 2018.

1. The company estimates future uncollectible accounts. The company determines $5,300 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
2. Supplies at the end of January total $850.
3. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
4. Unpaid salaries at the end of January are $33,800.

Prepare a general journal including the closing entries for revenue and expenses. Also prepare an income statement, balance sheet, and

Enter your Accounts Receivable turnover value in one decimal place and Ratio of Allowance for Uncollectible Accounts in Whole number on an analysis table.