Kelani Brookstone, an accountant, owns her own business named KB Accounting Services. The following are her assets and liabilities on June 30th, 2020. A/P-A. Borg & Son S 1,000 Equipment 12,000 A/P - Familiar Finance 3,000 Bank 4,000 Loan Payable - D. Terry (aunt) 6.800 A/R - R. Fawcett 300 Bank Loan 11,500 Automobile 30,000 A/P - Proctor's Ltd. 700 Supplies 800 A/R-O. Reingold 2,500 A/R - R. Steffan 700 Prepare a properly formatted balance sheet for KB Accounting Services as of June 30, 2020 on the tab labelled 'Classified Balance Sheet with the numbers above.
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- Lyka provided the following data on sale of his personal property sold in 2018 held by him for 15 months: Jerry, married, with 2 minor choldren, had the following data: 2019 2020 Business income P 410.800 P 306,700 Cost P 225,000 Interest on time deposit 3,000 2,000 Mortgage assumed by the buyer with BPI 270,000 Short-term capital gain 290.500 10,000 Long-term capital gain 20.600 290,000 80,200 Installment Collection Schedule: Short-term capital loss 20,900 Long-term capital loss 80,400 2018 67,500 2019 67,500 How much is the taxable income of Jerry for 2020 45,000 year 2019? How much is the taxable income of Jerry for the year 2020? How much is the selling price? A resident corporation has the following data on income and expenses In 2020: Gross sales P 1,025.O00 Sales returns and allowances 10,000 Sales discounts 3,500 Interest incone on t ade notes receivable 15,000 Capital gain on asset helld for 2 years 50.000 Cost of sales 415.670 Operating expenses with vouchers and receipts…ASSIGNMENT Helmuth owns a hardware store. His financial year ends 30 June. He provided the follo information: 1. His debtors on 1 July 2019 included N$700 owed by Gunter. On 30 June 2020 Gunter paid half of the amount owing in cash and the balance was written off as bad debt. On 15 January 2021 Gunter paid the outstanding amount in cash. REQUIRED (a) Make the appropriate entries for the financial year ending 30 June 2020 and 30 June 2021 in the following ledger accounts. The accounts should be balanced or closed off. (i) Gunter's Account [3 (ii) Bad Debts Account [2 (iii) Bad Debts Recovered AccountDuring 2021, Linx had the following transactions: Salary $50,000 Bank loan (proceeds used to buy personal auto) 10,000 Alimony paid (divorce was finalized in 2010). 12,000 Child support paid 6,000 Gift from aunt 20,000 Linx s AGI is: a.$32,000. b.$56,000. c.$38,000. d.$44,000.
- Case study for Harry and Belinda Johnson. Given: Harry Johnson - Annual Income $73,000.00 contributed to a traditional IRA $3,000.00 Belinda Johnson - Annual Income $94,000.00 contribued to 401(k) $3,000.00 Earned Interst - checking & savings $400.00 Earned Interst -Trust (taxed same as check & sav) $3,000.00 1. What is the Johnson's reportable gross income on their joint tax return? 2. What is their adjusted gross income?On 4/1/20, Sookie sold land that she held for investmentpurposes. Sookie received $200,000 in cash and a $ 1,000,000note receivable that will pay principal as follows:12/31/20$200,00012/31/21$200,00012/31/22$200,00012/31/23$200,00012/31/24$200.000Sookie’s adjusted basis in the land sold is $270,000.Absent any elections, how much gain will Sookie recognize in2020?a. $155,000b. $146,000c. $200,000d. $310,000e. $292,000Sam is a small business owner. In the year ended at the 30th of June 2019 the business has the below information: Beginning of Sam’s Capital account: $55,000 Net Income: $32,000 Outstanding Note Payable: $150,000 Total Expenses: $125,000 Ending of Sam’s Capital account: $54,000 Amounts withdrawn by Sam during 2019 will be: Select one: a. $33,000 b. $31,000 c. $23,000 d. $25,000
- Required information [The following information applies to the questions displayed below.] Javier and Anita Sanchez purchased a home on January 1 of year 1 for $1,000,000 by paying $200,000 down and borrowing the remaining $800,000 with a 6 percent loan secured by the home. The Sanchezes made interest-only payments on the loan in years 1 and 2. (Leave no answer blank. Enter zero if applicable.) d. Assume year 1 is 2021 and by the beginning of year 4, the Sanchezes have paid down the principal amount of the loan to $500,000. In year 4, they borrow an additional $100,000 through a loan secured by the home in order to purchase a new car. The new loan carries a 7 percent interest rate and is termed a “home equity loan" by the lender. What amount of interest can the Sanchezes deduct on the $100,000 loan? Maximum deductible interest expenseNita and Bona's entrepreneurs agreed to invest cash to put up a business selling signature bags. They agreed to share profits based on the legal provision. The following are the ledger postings for 2019Glen carries a $125,000 insurance policy on his life. Premiums paid over the years total $6.000. Dividends on the policy have totaled $4,000. Glen has left the dividends on the policy with the insurance company. During the curent year, the insurance company credited $1,500 of interest on the accumulated dividends to Glen's account. Requirements a. How much income is Glen obligated to report in connection with the policy? b. Would it make any difference if the acumulated dividends equaled 58.000 instead of $4,0007 Requirement a. How much income is Glen obligated to report in connection with the policy Glen would report only the interest $1.500 as taxable income Requirement b. Would it make any difference if the accumulated dividends equaled $8.000 instead of $4,0007 V Glen would be taxed on rates avalable to recipients of corporate dividend distributions. The total tavable amount ie The amount for the lower tax
- The following information applies to Jasmine, who is single, for 2020: Salary $56,350 Interest income from First Bank of Lexington 1,500 Dividends from Watters Company stock 3,000 Contribution to a traditional IRA 4,000 Loan repayment from her friend 1,000 Capital loss from sale of personal vehicle (2,300) Number of potential dependents ? Age 44 Jasmine maintains a household for her sister, who has $9,000 from Social Security. In addition, Jasmine's aunt lives with her and has income of $3,000. Click here to access the standard deduction table to use. Indicate whether the following items are taxable or nontaxable to Jasmine. Salary Taxable Loan repayment from a friend Not taxable Interest income Taxable Dividend income Taxable Identify whether the items are deductible (fully or partially) by Jasmine. Contribution to a traditional IRA Deductible Capital loss from sale of personal vehicle Not deductible Jasmine's…Review the following scenario. Use the information provided to answer questions about the taxpayers’ 2020 return.Chris (45) and Allison (46) Castillo are married, and they will file a joint return. During the year, they earned $82,500 in wages. They also had investment income consisting of: $200 interest income from a savings account with their local bank, reported on Form 1099-INT. $350 interest income from a certificate of deposit held with another local bank, reported on Form 1099-INT. $250 interest income from a U.S. Treasury note, reported on Form 1099-INT. $500 tax-exempt interest income from a municipal bond investment, reported on Form 1099-INT. $1,700 in ordinary dividends from a mutual fund investment, reported on Form 1099-DIV. They had no other income. Question 1: What amount will Chris and Allison report for their total income on Form 1040? You may refer to the couple's partially completed Form 1040, page 1, which is shown below, to assist you in answering this question.…Review the following scenario. Use the information provided to answer questions about the taxpayers’ 2020 return.Chris (45) and Allison (46) Castillo are married, and they will file a joint return. During the year, they earned $82,500 in wages. They also had investment income consisting of: $200 interest income from a savings account with their local bank, reported on Form 1099-INT. $350 interest income from a certificate of deposit held with another local bank, reported on Form 1099-INT. $250 interest income from a U.S. Treasury note, reported on Form 1099-INT. $500 tax-exempt interest income from a municipal bond investment, reported on Form 1099-INT. $1,700 in ordinary dividends from a mutual fund investment, reported on Form 1099-DIV. They had no other income. Question 1 What amount will Chris and Allison report for taxable interest on their Form 1040? The couple's partially completed Form 1040, page 1, is shown below. You may use the form to assist you in answering this…