Bonita, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2025. The increase in the prior year'sincome before taxes is $1,300,500. The tax rate is 20%.Prepare Bonita's 2025 journal entry to record the change in accounting principle. (Credit account titles are automatically indented whenthe amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List alldebit entries before credit entries.)Account Titles and ExplanationeTextbook and MediaDebitCredit

Given are:Increase in inventory = $1,300,500Tax rate = 20% Deferred tax liability = Inventory x Tax…

Answered: Bonita, Inc., changed from the LIFO…

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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Prepare a schedule showing the determination of corrected income before taxes for 2020 and 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000). Round answers to 0 decimal places, e.g. 125.) Income Before Tax Corrections: Sales Erroneously Excluded in 2020 Income Understatement of 2020 Ending Inventory Adjustment to Bond Interest Expense Repairs Erroneously Charged to the Equipment Account Depreciation Recorded on Improperly Capitalized Repairs Corrected Income Before Tax w Transcribed Text 1. 2. 3. Interest Expense 15,600 Cash 4. $ $ 15,600 2020 C 109000 (40400) 8500 (380) (8800) 880 68800 $ 2021 80000 Current Attempt in Progress The before-tax income for Marin Co. for 2020 was $103,000 and $82,800 for 2021. However, the accountant noted that the following errors had been made: 40400 (8500) (407) (8600) 1740 Sales for 2020 included amounts of $42,000 which had been received in cash during 2020, but for which the…
At the end of 2023, Novak Corporation owns a licence with a carrying amount of $508,000. Novak expects undiscounted future cash flows from this licence to total $512,500. The licence's fair value is $404,000 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $458,000. Assume that the licence was granted in perpetuity and has an indefinite life, and that Novak prepares financial statements in accordance with ASPE. Assume that the licence was granted in perpetuity and has an indefinite life. Determine if the licence is impaired at the end of 2023. The licence Prepare any related entry that is necessary. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) at the end of 2023. Account Titles and Explanation eTextbook and Media List of…
I'm having the same problem here with required # 2. I can't figure out where I went wrong, but it keeps saying my calculations are wrong. Please help! Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2021 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 25% in all years. Any tax effects should be adjusted through the deferred tax liability account. Fleming Home Products introduced a new line of commercial awnings in 2020 that carry a one-year warranty against manufacturer’s defects. Based on industry experience, warranty costs were expected to approximate 4% of sales. Sales of the awnings in 2020 were $4,000,000. Accordingly, warranty expense and a warranty liability of $160,000 were recorded in 2020. In late 2021, the company’s claims experience was evaluated, and it was determined that claims were far fewer than expected: 3% of sales rather than 4%. Sales of…
Cullumber Inc.'s only temporary difference at the beginning and end of 2024 is caused by a $3.75 million deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equal installments in 2025 and 2026. The related deferred tax liability at the beginning of the year is $1,125,000. In the third quarter of 2024, a new tax rate of 20% is enacted into law and is scheduled to become effective for 2026. Taxable income for 2024 is $6,250,000, and taxable income is expected in all future years.
I need help with part B
Flint Family Importers sold goods to Tung Decorators for $40.800 on November 1, 2022, accepting Tung's $40,800, 6-month, 6% note. Prepare Flint's November 1 entry, December 31 annual adjusting entry, and May 1, 2023, entry for the collection of the note and interest. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually Record journal entries in the order presented in the problem) Date 11/1/22 v 12/31/22 5/1/23 Account Titles and Explanation Notes Receivable Sales Revenue terest Receivable Interest Revenu Cath Interest Receivable interest Revenue Debit 40.800 408 42400 Credit 40.800 40800 400 814
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9) At the end of its 2020 fiscal period, Barton's Books, a sole proprietorship, has ending accounts receivable of $87,500. Of this amount, it is estimated that $3,400 are doubtful of collection. A reserve for income tax purposes is claimed for this amount. During 2021, $3,600 of accounts receivable are written off. as bad debts At the end of its 2021 fiscal period, accounts receivable total $103,200, with $4,100 of this amount considered doubtful of collection. What are the income tax consequences with respect to the accounts receivables for the 202y fiscal period?
Vishano
How would this be recorded on an Income Statement. During 2019, Natural State's CFO noticed that bad debt expense in the 2018 income statement was $50,000 too low as a result of an accounting error made by a Natural State employee in the prior year
At the beginning of 2021, Pitman Co. had pretax financial income of $1,200,000. Additionally, there was a timing difference of $300,000 due to an accounts receivable that will not be collected until the following year. The tax rate us 30%. A. Calculate the total taxable income for 2021. B. Calculate Income tax expense, income tax payable, and the deferred amount for 2021, and create the journal entry.
Splish Corporation borrowed $58,500 on November 1, 2020, by signing a $60,000, 3-month, zero-interest-bearing note. Prepare Splish's November 1, 2020, entry; the December 31, 2020, annual adjusting entry; and the February 1, 2021, entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record interest) (To pay note)

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