Dan plc is preparing its financial statements for the year ended 31 December 20X7. Its initial trialbalances show the following balance:Income tax payable on 1 January 20X7Income tax paidM337,850£351,083The income tax paid during the year ended 31 December 20X7 completely settles the 20X6 liability.The total estimated tax due on the profits for the year ended 31 December 20X7 is 402,917 Dan plcshould record the following journal at 31 December 20X7A. Debit Income tax expense £389,684; Credit Income tax payable £51,834, Credit Income tax paid£337,050B. Debit Income tax expense £389,684, Credit Income tax payable £65,067, Credit Income tax paid£324,617C. Debit Income tax expense £402,917, Credit Income tax payable £65,067, Credit Income tax paid£337,850D. Debit Income tax expense £402,917, Credit Income tax payable £51,834; Credit Income tax paid£351,083

Journal entries serve as records of financial transactions. You establish a journal entry in your…

Answered: Dan plc is preparing its financial…

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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Cougar’s Accounting Services provides low-cost tax advice and preparation to those with financial need. At the end of the current period, the company reports the following amounts: Assets = $16,200; Liabilities = $13,600; Revenues = $25,200; Expenses = $31,600. Required: 1. Calculate net loss. 2. Calculate stockholders' equity at the end of the period.
BEI-3 In January, gross earnings in Lugo Company totaled $80,000. All earnings are sub- ject to 7.65% FICA taxes, 5.4% state unemployment taxes, and 0.8% federal unemploy- ment taxes. Prepare the entry to record January payroll tax expense.
A company has income before income taxes of $879,000 for the current year. The current provision for income taxes is $140,000, and the provision for deferred income taxes is $50,000. Which amount should be recorded as this company's net income for the year? O $689,000 O $739,000 $829,000 $879,000
In January, gross earnings in Bonita Company were $106,000. The 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages. Federal income tax withheld was $16,500, and state income tax withheld was $1,500.Calculate net pay for January. (Round answer to 0 decimal places, e.g. 125.) Net pay for January $enter Net pay for January in dollars
Josh Company, a calendar-year corporation has the following income before income tax provison and estimated effective annual income tax rates for the first three quarters of year 1: Income before income tax provision Estimated effective annual rate at end of quarter Quarter First P600,000 40% Second 700,000 40% Third 400,000 45% 1. Josh income tax provision in its interim income statement for the third quarter should be?
E 6
Required Answer each of the following questions by providing supporting computations. 1. Assume that the company’s income tax rate is 30% for all items. Identify the tax effects and after-tax amounts of the three items labeled pretax. 2. Compute the amount of income from continuing operations before income taxes. What is the amount of the income tax expense? What is the amount of income from continuing operations? 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? 4. What is the amount of net income for the year?
Abitz Corporation has the following pretax operating income in its first three quarters of 20X5. The effective tax rate for each quarter is provided. Determine the third quarter income tax or benefit. Current Effective Quarter First Period $40,000 (25,000) 50,000 Tax Rate 25% Second 25% Third 30% a. $3,750 b. $15,000 c. $15,750 d. $20,000
he following information is from Atlanta Corp. for the 12 months ended December 31. Sales revenue $800,000 Cost of goods sold 500,000 Selling and administrative expenses 150,000 Interest expense 5,000 Gain on sale of short-term investments 8,800 Prepare a multiple - step income statement (excluding the earnings per share disclosures) assuming a tax rate of 25 %. Report income tax expense in its own separate section.
For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31: a. Anchor's general ledger shows a credit balance of $125,000 in Long-Term Notes Payable. Of the amount, a $25,000 installment becomes due on June 30 of the following year. b. Anchor estimates its unpaid income tax liability for the current year is $34,000; it plans to pay this amount in March of the following year. c. On December 31, Anchor received a $15,000 invoice for merchandise shipped on December 28. The merchandise has not yet been received. The merchandise was shipped F.O.B. shipping point. d. During the year, Anchor collected $10,500 of state sales tax. At year-end, it has not yet remitted $1,400 of these taxes to the state department of revenue. e. On December 31, Anchor's bank approved a $5,000, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following year. Current Liability Long-Term…
ABC Ltd is a company under self-assessment and prepares accounts to 31st March each year. Its estimated chargeable income for the year 2016 was GH¢ 1.2 million. However, the Company’s Returns which were submitted to the Large Tax Payers Office at the VAT House on 1st April, 2017 showed a chargeable income of GH¢1.8 million. During this period, Bank of Ghana policy rate was constant at 24% per annum. ABC Ltd made its first installment payment on 31st March, 2016.Requiredi. Compute the Interest payable by the company. ii. Determine the outstanding liability payable by the company to GRA. (Hint: Your answers should be in line with section 70 of Revenue Administration Act 2016 (Act 915))
Range Rover Inc. had taxable income of $152,000 for the year. The GAAP basis of accounts receivable (net) $9,600 less than the tax basis of accounts receivable. Assuming a tax rate of 25%, record the income tax journal entry on December 31. Assume zero beginning balances in deferred tax accounts Note: faline in a journal entry ant required for the transaction select N/A as the account names and leave the Dr. and Cr. answers blank (zero) Dr. Account Name Date Dec 31 income Tax Expose Income Tax Payate Deferred Tax Asset Tocesant income

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