Problem 4: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P8,750,000. The income tax rate is 30% of income after bonus. Requirements: Determine the BONUS under each of the following independent assumptions: Bonus is based on income before bonus and before tax. 9. А. В. Bonus is based on income after bonus and after tax. C. Bonus is based on income after bonus but before tax. D. Bonus is based on income after tax but before bonus

Problem 4: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P8,750,000. The income tax rate is 30% of income after bonus. Requirements: Determine the BONUS under each of the following independent assumptions: Bonus is based on income before bonus and before tax. 9. А. В. Bonus is based on income after bonus and after tax. C. Bonus is based on income after bonus but before tax. D. Bonus is based on income after tax but before bonus

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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15. A new product introduced by COCONUT Enterprise carries a two-year warranty against defects. The estimated warranty costs related to dollar sales are as follows: What amount should COCONUT report as its estimated liability as of December 31, 2021? a. ₱ 740,000 b. ₱ 40,000 c. ₱ 240,000 d. ₱ 540,000
35. a) Ronald Company has an incentive compensation plan under which a branch manager received 10% of the branch income after deduction of the bonus but before deduction of income tax. Branch income for the current year before the bonus and income tax was P1,650,000. The tax rate is 30%. What is the bonus for the current year? P150,000 P180,000 P165,000 P126,000
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JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings. The income for the year before bonus and tax is ₱8,750,000. The income tax rate is 30% of income after bonus. Determine the BONUS under each of the following independent assumptions: A. Bonus is based on income before bonus and before tax.B. Bonus is based on income after bonus and after-tax.
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?
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MY MEDALS ARE SHOOKT ENTERPRISE distributes annual bonuses to its sales manager and two sales agents. The company reported P2,000,000 profit for 2019 before bonuses and taxes. Income taxes average 30%. How much is the total amount of bonus if bonus of each is computed at 15% of profit after taxes and bonuses? a. P190,045 b. P397,476 c. P479,087 d. P570,135 Use the same information in MC 10. How much should the sales manager and each sales agent receive respectively, if the sales manager gets 15% and each sales agent gets 10% of profit after bonuses but before income taxes? a. P857,143 and P571,428 b. P518,519 and P518,518 c. P222,222 and P148,148 d. P195,000 and P130,000
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Problems 1). Record the journal entries for the following current liabilities for Company Z A). Company Z is required by law to collect and remit sales taxes to the state. If $78,000 of cash sales are subject to a 6% sales tax B). Company Z faces a probalble loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. C). Employees earn vacation pay at the rate of one day per month. During the month, 25 employees quality for one vacation day each. Their average daily wage is $100 per day. D). Z company estimates thatt warranty expense will be 4% of sales. The company's sales for the current period are $185,000.. E). Z Company receives $48, 000 cash in advance ticket sales for 12 home games. Record the advance ticket sales on April :30. Record the revenue earned for the first home game played on August 14. "V B. C. D. E.
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Q1. For Year 1, Pac Co. has a standard assurance-type warranty on its equipment. It estimated its 2-year equipment warranty costs based on $100 per unit sold in Year 1. Experience during Year 2 indicated that the estimate should have been based on $110 per unit. The effect of this $10 difference from the estimate is reported: In Year 2 income from continuing operations. As a cumulative amount, net of tax, below Year 2 income from continuing operations. As an accounting change retrospectively applied to Year 1 financial statements. As a correction of an error requiring Year 1 financial statements to be restated.