Hi expert provide correct answer general accounting Downum Taffetas, Inc. is an accrual methodtaxpayer that uses the calendar year as its tax year.The company sold and delivered $1,000 of taffetasheets to a customer on December 20, 2015, butwas not paid for the sale until January 18, 2016. Thecost of the goods sold was $250. The delivery of tinsheets cost $50 but the company did not pay thedelivery charge until January 12, 2016. Based onthese facts, what is the company's taxable incomefor 2015?

Step 1: Define Taxable IncomeTaxable income is the tax imposed on the gross income of individuals…

Answered: Downum Taffetas, Inc. is an accrual…

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter4: Income Tax Withholding

Section: Chapter Questions

Problem 6SSQ

See similar textbooks

Similar questions

Argon Traders is a business located in Centurion.Argon Traders is a registered VAT vendor and trades only with registered VATvendors that can provide tax invoices. The business charges 15% VAT on all its sales.All amounts are inclusive of VAT, unless VAT is not applicable.Argon Traders sells good for cash and on credit.Transaction 1: On the 1st of March 2022 Argon Traders sold goods for R15 000excluding VAT) on credit to Mr Neon.Goods are marked up 20% on cost Record transaction 1 in the applicable general ledger accounts using the perpetualinventory system.
SA Traders operates as a hardware store and is a registered VAT vendor. The applicable tax rate is 15%. SA Traders makes use of the periodic inventory system, as well as control accounts. The transaction amounts are VAT inclusive where applicable. On 4 August 2020, Rod Traders purchased stationery for use in the office and paid R1 120 in cash. The amount in the VAT input column in the relevant journal for this transaction will be: A. R146,09 B. R137,54 C. R0 as the amount should be recorded as VAT output. D. R168,00
Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2024, the following transactions related to receivables occurred: February 28 Sold merchandise to Lennox, Incorporated, for $24,000 and accepted a 8%, 7-month note. 8% is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $16,560, and accepted a noninterest-bearing note for which $18,000 payment is due on March 31, 2025. April 3 Sold merchandise to Carr Company for $12,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts. April 11 Collected the entire amount due from Carr Company April 17 A customer returned merchandise costing $4,100. Evergreen reduced the customer's receivable balance by $5,900, the sales price of the merchandise. Sales returns are recorded by the company as they occur. April 30 Transferred receivables of $59,000 to a factor without recourse. The factor…
Savango Auto Supply does not segregate sales and sales taxes at the time of sale. Theregister total for March 16 is $15,540. All sales are subject to a 5% sales tax. Compute sales taxespayable, and make the entry to record sales taxes payable and sales.
Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2024, the following transactions related to receivables occurred: February 28 Sold merchandise to Lennox, Incorporated, for $24,000 and accepted a 8%, 7-month note. 8% is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $20, 240, and accepted a noninterest-bearing note for which S 22,000 payment is due on March 31, 2025. April 3 Sold merchandise to Carr Company for $20,000 with terms 210/, n30/. Evergreen uses the gross method to account for cash discounts. April 11 Collected the entire amount due from Carr Company April 17 A customer returned merchandise costing $4,500. Evergreen reduced the customer's receivable balance by $6,300, the sales price of the merchandise. Sales retums are recorded by the company as they occur. April 30 Transferred receivables of $63,000 to a factor without recourse. The factor…
Wolfpack Inc., a calendar year-end company, pays its employees on the last day of the month for work performed during the month. Gross salaries for the month of April are $20,000. Wolfpack withholds the following amounts from its employees’ paychecks for this pay period: federal income tax of $4,000 state income tax of $2,500 FICA tax of $1,530 Tax withholding are not remitted to the proper tax agencies until the 10th of the following month. Required: Answer the following two questions. Note: Do not include decimals or cents in your response. Question #1: The entry to record the payment of salaries on April 30 should include a debit to the "Salaries Expense" account for how much? Answer: Question #2: The entry to record the payment of salaries on April 30 should include a credit to the "Cash" account for how much? Answer:
Wolfpack Inc., a calendar year-end company, pays its employees on the last day of the month for work performed during the month. Gross salaries for the month of April are $20,000. Wolfpack withholds the following amounts from its employees’ paychecks for this pay period: federal income tax of $4,000 state income tax of $2,500 FICA tax of $1,530 Tax withholding are not remitted to the proper tax agencies until the 10th of the following month. Required: Answer the following two questions. Note: Do not include decimals or cents in your response. Question #1: The entry to record the payment of salaries on April 30 should include a debit to the "Salaries Expense" account for how much? Answer: $Answer. Question #2: The entry to record the payment of salaries on April 30 should include a credit to the "Cash" account for how much? Answer: $Answer
Gadubhai
Albert Soft Top Corp. pays quarterly wages and incurs federal employment taxes of $3,150 on said wages. The corporation makes the deposit on the required date in the amount of $3,085 (due to an input error in the software). Which calculation illustrates the safe harbor rules that Albert SoftTop Corp. can adhere to (assuming they pay the shortfall by the shortfall date)? Oa. $65 is under the $1,000 limit so they are covered by safe harbor rules. b. $65 is less than 2% of the required deposit, so they are covered by safe harbor rules. e $65 is less than the greater of $100 or 2% of the required deposit, so they are covered by safe harbor rules. Od. the safe harbor rules would only apply if the shortfall was greater than $62 (2% x $3,150). Darla Simpson is self-employed. Her net income for the year is $152,000. Calculate the OASDI portion of her self-employment taxes for the year. O a. $10,863.00 Ob. $17,707.200 Oc. $8,537.40 Od. $18,848.00 If a new employer incurs $100,000 of unsatisfied…
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $340,000. During 2021, Halifax sold merchandise on account for $11,600,000. Halifax's merchandise costs it 75% of merchandise selling price. Also during the year, customers returned $575,000 in sales for credit, with $319,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end.2. What is the amount…
Elegant Electronics sells a cellular phone on September 2 for $450. On September 6, Elegant sells another cellular phone for $500. Sales tax is computed at 3.5% of the total sale. Prepare journal entries for each sale, including sales tax, and the remittance of all sales tax to the tax board on October 23.
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $390,000. During 2021, Halifax sold merchandise on account for $12,400,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $368,000 in sales for credit, with $203,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 2. What is the amount of the year-end refund liability after the adjusting entry is recorded?

SEE MORE QUESTIONS

Recommended textbooks for you

PAYROLL ACCT., 2019 ED.(LL)-TEXT

Accounting

ISBN:

9781337619783

Author:

BIEG

Publisher:

CENGAGE L

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

PAYROLL ACCT., 2019 ED.(LL)-TEXT

Accounting

ISBN:

9781337619783

Author:

BIEG

Publisher:

CENGAGE L

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SEE MORE TEXTBOOKS