Nash, 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 $1,070,000. The tax rate is 20%.Prepare Nash's 2025 journal entry to record the change in accounting principle. (Credit account titles are automatically indented when theamount 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 ExplanationDebitCredit

Step 1: Determine the Cumulative EffectIncrease in income before taxes: $1,070,000Tax rate: 20%Tax…

Answered: Nash, Inc., changed from the LIFO cost…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 22CE

See similar textbooks

Similar questions

Bonita, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2025. The increase in the prior year's income 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 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 all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media Debit Credit
Shannon, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2025. The increase in the prior year's income before taxes is $1,200,000. The tax rate is 20%. Prepare Shannon's 2025 journal entry to record the change in accounting principle. (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 all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Sandhill, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2020. The increase in the prior year's income before taxes is $1,127,000. The tax rate is 20%. Prepare Sandhill's 2020 journal entry to record the change in accounting principle. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit
please help
ALSO: Prepare the journal entry to record income taxes payable, deferred taxes, and income tax expense for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
In 2023, Windsor Ltd., which follows IFRS, reported accounting income of $1,130,000 and the 2023 tax rate was 20%. Windsor had two timing differences for tax purposes: CCA on the company's tax return was $512,000. Depreciation expense on the financial statements was $308,000. These amounts relate to assets that were acquired on January 1, 2023, for $2,048,000. Accrued warranty expense for financial statement purposes was $140,600 (accrued expenses are not deductible for tax purposes). This is the first year Windsor offers warranties. Both of these timing differences are expected to fully reverse over the next four years, as follows: Year 2024 2025 2026 2027 Depreciation Difference $70,500 57,500 40,500 35,500 Warranty Expense Rate $20,500 20% 29,900 20% 39,600 18% 50,600 18% $204,000 $140,600
Skysong Corp. sold an investment on an installment basis. The total gain of $74,400 was reported for financial reporting purposes in the period of sale. The company qualifies to use the installment-sales method for tax purposes. The installment period is 3 years; one-third of the sale price is collected in the period of sale. The tax rate was 40% in 2020, and 20% in 2021 and 2022. The 20% tax rate was not enacted in law until 2021. The accounting and tax data for the 3 years is shown below. Financial Accounting Tax Return 2020 (40% tax rate). Income before temporary difference $86,800 $86,800 Temporary difference 74,400 24,800 Income $161,200 $111,600 2021 (20% tax rate) Income before temporary difference $86,800 $86,800 Temporary difference 24,800 Income $86,800 $111,600 2022 (20% tax rate). Income before temporary difference $86,800 $86,800 Temporary difference 24,800 Income $86,800 $111,600 Calculate cumulative temporary differences for years 2020-2022. (Negative amounts using…
(f) G Current Attempt in Progress Record current income taxes for 2023. (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.) Deferred Tax Asset For the year ended December 31, 2023, Blue Ltd. reported income before income taxes of $206,700. Prior to 2023 taxable income and accounting income was the same each year. In 2023, Blue Ltd. paid $120,600 for advertising; of this amount, $40,200 was expensed in 2023. The remaining $80,400 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $120,600 was deductible for tax purposes in 2023. The company paid $32,600 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Blue Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses…
Sandhill Company has the following two temporary differences between its income tax expense and income taxes payable. Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income The income tax rate for all years is 20%. (a) 2025 $864,000 (30,400) 19,400 $853,000 2026 $917,000 (38,500) 10,100 $888,600 2027 $909,000 (9,800) 8,300 $907,500 Assuming there were no temporary differences prior to 2025, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, 2026, and 2027. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.)
.
Please do not give image format
Nash, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2020. The increase in the prior year's income before taxes is $1,300,500. The tax rate is 20%.Prepare Nash’s 2020 journal entry to record the change in accounting principle.

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

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

Accounting

ISBN:

9781337619783

Author:

BIEG

Publisher:

CENGAGE L

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS