Edge Co., a toy manufacturer, is in the process of preparing its financial statements for theyear ended December 31, Year 8. Edge expects to issue its Year 8 financial statements onMarch 1, Year 9.For each item, two responses are required. Select from the option lists provided theappropriate adjustment amount, if any, and whether additional disclosure is required,either on the face of or in the notes for each financial statement below. Each choice may beused once, more than once, or not at all. If no adjustment is necessary, select "No entryrequired" in the Adjusted amount column and continue to the Additional disclosurerequired column.Show Transcribed Text5. On January 30, Year 9, Edge issued$10 million bonds at a premium of $500,000.6. On February 4, Year 8, the IRS assessedEdge an additional $400,000 for the Year 4 taxyear. Edge's tax attorneys and tax accountantshave stated that it is likely that the IRS willagree to a $100,000 settlement.C!!!!

The adjustments are required at the time when the financial statements are prepared as those are…

Answered: 5. On January 30, Year 9, Edge issued…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2021, Lance has a warranty liability of $2 million and taxable income of $75 million. At December 31, 2020, Lance reported a deferred tax asset of $471,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is 25% each year. Required: Prepare the appropriate journal entry to record Lance's income tax provision for 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet > Record 2021 income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
4
The Stoudemire Trust reports $45,200 of net investment income (NII) and $60,000 in net profits from an active business operation for 2020. Stoudemire retains all of the business profits but, under the terms of the trust agreement, distributes $17,400 cash from the NII to its sole beneficiary Marshall. Round your final answer to the nearest dollar. The trust's liability under the additional tax on NII is ${fill in the blank 1}
None
The company has made an investment in government bonds. The bonds will generate an interest income of OMR 20623 each year for 6 years. The interest rate is 12% annually. Compute present value of the stream of interest income for 6 years. Select one: O a. 105412.55 O b. 84789.55 Oc. 64166.55 O d. 5016.04 O e. All the given choices in this question are not correct
Ivanhoe pays a weekly payroll of $250000 that includes federal income taxes withheld of $38100, FICA taxes withheld of $23970, and 401(k) withholdings of $26500. What is the effect on assets and liabilities from this transaction? Assets decrease $187930 and liabilities decrease $62070. Assets decrease $187930 and liabilities increase $62070. Assets decrease $161430 and liabilities increase $88570. Assets decrease $250000 and liabilities do not change.
6
ABC Inc. has asked you to assist in the completion of their 2018 tax provision. They have provided you with the following information; NBV at 12/31/2017 $600,000 UCC at 12/31/2017 320,000 Warranty provision 80,000 Tax rate 45% The following transactions occurred during 2018: Income before taxes $1,600,000 Depreciation 160,000 Warranty provision 50,000 Actual warranty expenditures 70,000 Class 8 additions 200,000 Disallowed entertainment 75,000 Dividends from a taxable Canadian corporation 100,000 REQUIRED 1. Prepare a reconciliation of accounting income to income for tax purposes 2. Prepare the journal entries to record the 2018 tax provision
Hi, can someone help me with this question please?
The CFO has asked you to calculate the taxable income and prepare journal entries for Rudolf Ltd at 30th June 2022. Accounting loss before tax Impairement loss warranty expense Fines expense Doubtful Debts. Depreciation Plant warranty paid** Depreciation for tax - Plant.** Bad debts written off. ** (80,000) 1,000 10,000 5,000 4,000 20,000 8,000 30,000 10,000 Note These items ** are deductible for tax purposes

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