Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, Up t8 sIR after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: Pretax Accounting Incone 2020 2021 2022 Service Revenue $660,000 750,000 710,000 716,000 Collections $620,e00 770,e00 702,000 720,00e $186,000 260,000 228,000 200,000 2023 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25% (Hint You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020- 2023.) Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 income taxes (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.)

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, Up t8 sIR after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: Pretax Accounting Incone 2020 2021 2022 Service Revenue $660,000 750,000 710,000 716,000 Collections $620,e00 770,e00 702,000 720,00e $186,000 260,000 228,000 200,000 2023 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25% (Hint You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020- 2023.) Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 income taxes (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.)

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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Required information [The following information applies to the questions displayed below.] Glennelle's Boutique Inc. operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2019 are issued in May 2020 and are payable in July 2020. c-2. Assume that the actual tax bill, received in May 2020, was for $7,500. Record the journal entry to show the effects of the appropriate adjustment to the amount previously accrued. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 No Event 1 X Answer is complete but not entirely correct. General Journal Real estate tax expense Real estate taxes payable Debit 2,500 X Credit 2,500 x O Apr 8
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Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. As we go to press, the federal income tax rates for 2023 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2022 federal income tax tables for Manual Systems with Forms W-4 from 2020 or Later with Standard Withholding and 2022 FICA rates have been used. Click here to access the Percentage Method Tables Click here to access the Wage-Bracket Method Tables Amount to Be Withheld Filing No. of Withholding Gross Wage Employee Status Allowances or Salary Method Percentage Wage-Bracket Method Lennon, A. N/A $675 weekly Stan, P. S N/A 1,365 weekly McNeil, S. HH N/A 1,775 biweekly Harrison, W. HH N/A 2,500 semimonthly Smythe, M. MFJ N/A 5,380 monthly
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