Complex Company reported the following information relating to income before tax for accounting purposes: Problem 16-7 (IAA) 2,000,000 3,000,000 4,000,000 5,000,000 2020 2021 2022 2023 Income tax rate 30% In 2020, the entity recognized doubtful accounts of P100.000 Such accounts were considered worthless or uncollectibi. in 2021. Analysis of the tax and book records disclosed P120,000 in unearned rent income on December 31, 2020 that has been recognized as taxable income in 2020 when the cash was received Also on December 31, 2020, estimated warranty cost of P300,000 had been recognized as expense on the books in 2020 when the product sales were made but is not deductible for tax purposes until paid. The unearned rent income on December 31, 2020 is realized and the actual warranty payments were made as follows: Rent income per book Actual warranty payments 2021 2022 2023 40,000 40,000 40,000 20,000 80,000 200,000 Required: 1. Prepare journal entries for 2020, 2021, 2022 and 2023 o record income tax expense and deferred income tax arishie from the temporary differences. 2. Present the deferred tax asset on December 31, 2021.

Complex Company reported the following information relating to income before tax for accounting purposes: Problem 16-7 (IAA) 2,000,000 3,000,000 4,000,000 5,000,000 2020 2021 2022 2023 Income tax rate 30% In 2020, the entity recognized doubtful accounts of P100.000 Such accounts were considered worthless or uncollectibi. in 2021. Analysis of the tax and book records disclosed P120,000 in unearned rent income on December 31, 2020 that has been recognized as taxable income in 2020 when the cash was received Also on December 31, 2020, estimated warranty cost of P300,000 had been recognized as expense on the books in 2020 when the product sales were made but is not deductible for tax purposes until paid. The unearned rent income on December 31, 2020 is realized and the actual warranty payments were made as follows: Rent income per book Actual warranty payments 2021 2022 2023 40,000 40,000 40,000 20,000 80,000 200,000 Required: 1. Prepare journal entries for 2020, 2021, 2022 and 2023 o record income tax expense and deferred income tax arishie from the temporary differences. 2. Present the deferred tax asset on December 31, 2021.

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

Which is false? Business with annual gross receipts of more than P3,000,000 * O Are subject to graduated income tax Are subject to Creditable withholding tax O Are subject to VAT O None of the above
Skip to question [The following information applies to the questions displayed below.]At March 31, 2019, the end of the first year of operations at Lukancic Inc., the firm’s accountant neglected to accrue payroll taxes of $6,370 that were applicable to payrolls for the year then ended. Exercise 7-7 (Algo) Part a - Horizontal Model Required:a-1. Use the horizontal model to show the effect of the accrual that should have been made as of March 31, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
taxable income : 1225000 income taxes payable: 245000
don't give answer in image format
P14-9 Calculating and recording a company's income tax The accounting records of Rhyme Timber Ltd provide income statement data for 2016: Total revenue Total expenses Profit before income tax $940000 Requirements 1 Calculate taxable income for the year. (750 000) $190000 Total expenses include depreciation of $50000 calculated under the straight-line method. In calculating taxable income on the tax return, Rhyme Timber uses the reducing-balance (RB) method. RB depreciation was $80000 for 2016. The company income tax rate is 30%. 2 Prepare the journal entry in respect of income tax for 2016. 3 Show how to report income tax liabilities on Rhyme's balance sheet.
BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes P12,000,000; Rent expense for financial accounting purposes is P2,000,000 Rent expense for tax purposes is P1,000,000; Tax depreciation is P3,200,000 Accounting depreciation is P1,700,000; Loss on a case incurred but not yet paid so tax-deductible in the future is P700,000. The tax rate is 30%. Question: What is the amount of taxable temporary difference? What is the current tax expense?
Questions on Failure to pay tax under withholding due date QI: Humble Limited paid PAYE for the month of June 2018 on 15th on September15, 2018. The tax liability for the period was GHC1,550. Compute the penalty due Solution Q2: Humble Limited paid PAYE for the month of June 2018 on 15th on November15, 2018. The tax liability for the period was GHC2,000. Compute the penalty due
Extracts from trial balance at 31 March, 2019 GH¢ Current tax credit balance 1,600,000 Deferred tax liability 5,200,000 The halance on current tax represents the under/over provision of the tax liability for the year ended 31 March, 2018. The required provision for income tax for the year ended 31 March. 2019 is GHe38-8 million. The difference between the carrying amounts of the net assets of the company and their (lower) tax base at 31 March, 2019 is GH¢54 million. The rate of income tax is 25%. Required: Prepare a Statement of Profit or Loss Extract and Statement of Financial Position Extract for 31 March, 2019. t mie ol
Do not give image format
Ive been rejected many times. Please answer in good accounting form thankyou.
Please do not give solution in image format...Thank You
The amount of net deferred tax asset/(liability) at January 1, 2008 is? The amount of net deferred tax asset/(liability) at December 31, 2008 is? Income tax expense – current for 2008 is?