A corporation had the following assets and liabilities at the beginning and end of this year. Assets Beginning of the year End of the year $109,000 152,500 Liabilities $46,728 61, 763 a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, but dividends were $1,400 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends were $1,400 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases In equlty should be Indicated with a mlnus sign.) b. C. d. Beginning of the year-Equity Owner investments Dividend Net income (loss) End of the year-Equity 이 S

A corporation had the following assets and liabilities at the beginning and end of this year. Assets Beginning of the year End of the year $109,000 152,500 Liabilities $46,728 61, 763 a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, but dividends were $1,400 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends were $1,400 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases In equlty should be Indicated with a mlnus sign.) b. C. d. Beginning of the year-Equity Owner investments Dividend Net income (loss) End of the year-Equity 이 S

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 760,000 Dividends received from Brown Corporation 240,000 Click here to view the dividend received deduction table. Question Content Area a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year? Swallow's taxable income after deducting the dividends received deduction is $fill in the blank fd6fd0f8303e049_2 . Feedback Area Feedback The purpose of the dividends received deduction is to mitigate multiple taxation of corporate income. Without the deduction, income paid to a corporation in the form of a dividend would be taxed to the recipient corporation with no corresponding deduction to the distributing corporation. Later, when the recipient corporation paid the income to its shareholders, the income would again be subject to taxation with no corresponding…
12. The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATIONIncome StatementFor the Year Ended December 31, 2021 Revenues and gains: Sales revenue $ 790,000 Interest revenue 52,000 Gain on sale of investments 99,000 Total revenues and gains 941,000 Expenses and losses: Cost of goods sold $ 425,000 Selling expense 79,000 Administrative expense 99,000 Interest expense 36,000 Restructuring costs 75,000 Income tax expense 56,750 Total expenses and losses 770,750 Net Income $ 170,250 Earnings per share $ 1.70 Required:Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
tyu
Following particulars have been obtained from the accounts of a company.i) Remuneration of Managing Director 20,000ii) Provision for Bad debts 10,000iii)Provision for taxation 1,50,000iv) Depreciation written off 80,000v) Loss on sale of investments 70,000vi) Depreciation allowable according to Income-Tax Provisions 70,000vii) Net profit after considering the above items 4,50,000Calculate remuneration of Managing Director at 5% of net profit. The net profit should be as per provisions of Companies Act.
Heron Corporation is a personal service corporation. It had $230,000 of net active income, $40,000 of portfolio income, and a $250,000 passive loss during the year. How much is Heron’s taxable income for the year? a. $20,000. b. $40,000 c. $270,000 d. $520,000
Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2. Johnstone's earnings and profits at the end of year 1 were $11,560. Marcus is Johnstone's sole shareholder, and he has a stock basis of $46,000 at the end of year 1. Johnstone Corporation Income Statement December 31, Year 2 Year 2 (S Corporation) $ 174,000 ( 41,000) ( 66,000) ( 56,500) (10,000) (4,600) 12,540 Sales r evenue Cost of goods sold Salary to owners Employee wages Depreciation expense Miscellaneous expenses Interest income Overall net income $ 8,440 What is Johnstone's accumulated adjustments account at the end of year 2, and what amount of dividend income does Marcus recognize on the year 2 distribution in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.) a. Johnstone distributed $7,200 to Marcus in year 2. Accumulated adjustments account Dividend income
Accounting The Storm Corporation, a calendar year taxpayer, incurred the following items. Compute Storm's net operating loss. Operating Income - $300,000 Operating Expenses - $350,000 Dividend Received (30% ownership) - $100,000 $30,000 $50,000 $20,000 None of the other answers
One item is omitted in each of the following summaries of balance sheet and income statement data for four different corporations, AL, CO, KS, and MT. Enter the missing amounts. Beginning of the year: Assets Liabilities End of the year: Assets Liabilities During the year: Additional issue of capital stock Dividends Revenue Expenses AL $308,100 184,900 382,000 166,400 21,600 101,700 55,500 CO $354,300 184,200 496,000 155,900 70,900 21,300 92,100 KS $144,800 115,800 159,300 115,800 14,500 168,000 178,100 MT 169,200 349,600 191,700 56,400 82,700 157,900 180,400
1.) XQP corporation expensed $50,000 of bad debts during the year. The activity in the allowance for doubtful accounts was $70,000 Beginning Balance Bad Debt Accrued for the Year Bad Debts Written Off Ending Balance $50,000 $35,000 $85,000 What is the BOOK-TO-TAX difference of XQP Corp for bad debts? O A.SO O B.$15,000 Unfavorable OC. $35,000 Unfavorable O D. $50,000 Unfavorable O E. $85,000 Unfavorable
a) Calculate the S corporation's ordinary (non-separately stated) income and indicate which items must be separately stated b) If at the beginning of the year, Archer had a basis of 20,000 compute Archer’s basis at the end of the year. c) Assume that Voyager reported a loss of $70,000 instead (and no separately stated items or distributions). If Janeway had a basis of 10,000 in her stock at the beginning of the year, what is the amount of loss she can report on her return?
am. 76.
A Corporation had the following liabilities at December 31, 1996: Accounts payable P 110,000 Uncollateralized notes, 8%, due 7/1/97 800,000 Accrued expenses 70,000 Contingent liability 900,000 Deferred income tax liability 50,000 Senior bonds, 7% due 3/3/1/97 2,000,000 The contingent liability is an accrual for possible losses on a P2,000,000 lawsuit filed against A. A’s legal counsel expects the suit to be settled in 1998, and has estimated that A will be liable for damages in the range of P900,000 to P1,500,000. The deferred income tax liability is note related to an asset for financial reporting and is expected to reverse in 1998. What amount should A report in its December 31, 1996 balance sheet as current liabilities?