Accounting 41 Pankaj Business Solutions started the year with total assets of$180,000 and total liabilities of $80,000. The company is a soleproprietorship. The revenues and expenses for the yearamounted to $135,000 and $69,000, respectively. During the year,there were no new capital contributions, and the owner withdrew$50,000.Calculate Pankaj's net income for the year.

Concept of Net Income: Net income refers to the amount of money a business earns after subtracting…

Answered: Pankaj Business Solutions started the…

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

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter5: Unemployment Compensation Taxes

Section: Chapter Questions

Problem 5PA

See similar textbooks

Similar questions

At the end of the year, Huskies Together Company has pretax financial income of $550,000. Included in the $550,000 is $70,000 interest income on municipal bonds, $25,000 fine for dumping hazardous waste, and depreciation of $60,000. Depreciation for tax purposes is $45,000. Compute income taxes payable, assuming the tax rate is 30% for all periods. Prepare the journal entry at the end of the year.
ZYX Inc has average gross receipts of $40 million per year over the last several years. In the current year, ZYX has $2,000,000 of taxable income before considering interest.ZYX has $150,000 of business interest income, S1, 200,000 of interest expense, and no floor plan financing. How much interest expense can ZYX deduct?
FruAgro Company has average annual gross receipts of $50 million annually. This year, FruAgro earned $1 million of business interest income, incurred $20 million of business interest expense and has adjusted taxable income of $37 million. Required: Compute FruAgro's current deduction for business interest and the amount of any business interest carryforward. (The CARES Act applies. Enter your answers in dollars not in millions of dollars.) Answer is complete but not entirely correct. Business interest deduction Business interest carryforward Amount $ 18,500,000 $1,000,000
What is JIGS Enterprises taxable income for this year?
Weld Corporation is constructing a plant for its own use. Weld capitalizes interest on an annual basis. The following expenditures are made during the current year: January 1, $102,000; July 1, $986,000; September 1, $2,720,000; and December 31, $7,174,000. The following debts were outstanding throughout the current year. Debt Construction note, 12% Short-term note payable, 15% Amount $340,000 1,360,000 Accounts payable (noninterest-bearing) 1,360,000 Note: Round all of your answers to the nearest whole number or whole percentage point. a. Compute the amount of interest to be capitalized during the year. Calculation of Actual Interest Debt Debt Amount Interest rate Interest Amount Specific Debt Construction loan $ 340,000 12 % $ 40,800 General Debt Note payable $ 1,360,000 15% Total Actual Interest $ 204,000✔ 244,800 Calculation of Weighted Average Accumulated Expenditures Weighted Avg. Date January 1 July 1 $ Expenditures 102,000 ✔ 986,000 ✔ Months outstanding Accum. Expenditures 12 $…
At the end of the year, Falabella Co. has pretax financialincome of $550,000. Included in the $550,000 is $70,000interest income on municipal bonds, $25,000 fine fordumping hazardous waste, and depreciation of $60,000.Depreciation for tax purposes is $45,000. Compute incometaxes payable, assuming the tax rate is 30% for all periods.
In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
The Bookbinder Company had 500,000 cumulative operating losses prior to the beginning of last year. It had 100,000 in pre-tax earnings last year before using the past operating losses and has 300,000 in the current year before using any past operating losses. It projects 350,000 pre-tax earnings next year. a. How much taxable income was there last year? How much, if any, cumulative losses remained at the end of the last year? b. What is the taxable income in the current year? How much, if any, cumulative losses remain at the end of the current year? c. What is the projected taxable income for next year? How much, if any, cumulative losses are projected to remain at the end of next year?
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
The accounting records of Sunland Inc. show the following data for 2025: 1. Life insurance expense on officers was $7,000. 2. Equipment was acquired in early January for $432,000. Straight-line depreciation over a 6-year life is used, with no salvage value. For tax purposes, Sunland used a 30% rate to calculate depreciation. 3. Interest revenue on municipal bonds totaled $3,600. 4. Product warranties were estimated to be $93,000 in 2025. Actual repair and labor costs related to the warranties in 2025 were $24,000. The remainder is estimated to be paid evenly in 2026 and 2027. 5. 6. Sales on an accrual basis were $494,000. For tax purposes, $385,000 was recorded on the installment-sales method. Fines incurred for securities violations were $10,300. 7. Pretax financial income was $468,000. The tax rate is 30%. Your answer is partially correct. Prepare a schedule starting with pretax financial income in 2025 and ending with taxable income in 2025. (Enter negative amounts using either a…
During the year, Irv had the following transactions: Long-term loss on the sale of business use equipment $7,000 Long-term loss on the sale of personal use camper 6,000 Long-term gain on the sale of personal use boat 3,000 Short-term loss on the sale of stock investment 4,000 Long-term loss on the sale of land investment 5,000 How are these transactions handled for income tax purposes?
The accounting records of Ehrlich Inc. show the following data for 20201. Life insurance expense on officers was $10,000.2. Equipment was acquired in early January for $450,000. Straight-line depreciation over a 6-year life is used, with no salvagevalue. For tax purposes, Ehrlich used a 30% rate to calculate depreciation.3. Interest revenue on municipal bonds totaled $3,600.4. Product warranties were estimated to be $90,000 in 2020. Actual repair and labor costs related to the warranties in 2020were $24,000. The remainder is estimated to be paid evenly in 2021 and 2022.5. Sales on an accrual basis were $500,000. For tax purposes, $400,000 was recorded on the installment-sales method.6. Fines incurred for securities violations were $10,600.7. Pretax financial income was $460,000. The tax rate is 30%.Instructions(a) Prepare a schedule starting with pretax financial income in 2020 and ending with taxable income in 2020.(b) Prepare the journal entry for 2020 to record income taxes payable,…

SEE MORE QUESTIONS

Recommended textbooks for you

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

Accounting

ISBN:

9781337619783

Author:

BIEG

Publisher:

CENGAGE L

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

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

Accounting

ISBN:

9781337619783

Author:

BIEG

Publisher:

CENGAGE L

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS