Questions on Failure to pay tax under withholding due date QI: Humble Limited paid PAYE for the month of June 2018 on 15th on September15, 2018. The tax liability for the period was GHC1,550. Compute the penalty due • Solution Q2: Humble Limited paid PAYE for the month of June 2018 on 15th on November15, 2018. The tax liability for the period was GHQ2,000. Compute the penalty due

Questions on Failure to pay tax under withholding due date QI: Humble Limited paid PAYE for the month of June 2018 on 15th on September15, 2018. The tax liability for the period was GHC1,550. Compute the penalty due • Solution Q2: Humble Limited paid PAYE for the month of June 2018 on 15th on November15, 2018. The tax liability for the period was GHQ2,000. Compute the penalty due

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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Example 5-8 The Iqbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6 percent SUTA tax rate. The company would pay unemployment taxes of: FUTA $215,600 × 0.006 = $1,293.60 SUTA $255,700 × 0.056 = 14,319.20 Total taxes $15,612.80 Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8 percent on the first $12,000 of each employee’s earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to this week’s pay. The unemployment taxes that the company must pay for this week’s pay would be $48. FUTA tax (both over $7,000) = $0.00SUTA tax ($1,000 × 0.048) = $48.00($500 of each employee’s pay is under the state taxable limit of $12,000) Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year: V. Hoffman…
Adjusting Allowance for Doubtful Accounts and Bad Debt Expense Merck & Company reported the following in its financial statements. $ millions Accounts receivable, net Allowance for doubtful accounts 2016 2017 2018 2019 $8,773 $8,591 $8,839 $8,473 244 199 149 108 Adjust the balance sheet and income statement to reflect a 1.97874% of Allowance for doubtful accounts to Gross accounts receivables for each year. Assume a tax rate of 20%. • Round answers to one decimal. Use a negative sign to indicate if the adjustment decreases an account balance. 2016 2017 2018 2019 Adjusted allowance for doubtful accts. $ 178.4 $ 173.9 $ 177.8 $ 169.8 Income Statement Adjustments Bad debts expense Income tax expense at 20% Net Income (65.6) (25.1) 28.8 61.8 (13.1) (5) 5.8 12.4 52.5 20.1 (23.1) (49.4) Balance Sheet Adjustments Allowance for doubtful accounts (65.6) (90.6) (61.8) 0 Accounts receivable, net 65.6 90.6 61.8 0 Deferred tax liabilities 13.1 18.1 12.4 0 Retained Earnings 52.5 72.5 49.4 0
4:34 PMJ-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2021. The only dif-ference between accounting and taxable income is estimated product warranty costs of $9,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022-2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Deter-mine the amounts necessary to record J-Matt's income taxes for 2021 and prepare the appropriate journal entry.
KPL Ltd has a year end of 31 March 2021. During the year it paid £1,600 for rent. At the start of the year it had an accrual of £400 and at 31 March 2021 had prepaid £250 of rent in respect of the year starting 1 April 2021. What is the charge to the income account for the year ended 31 March 2021? a) £950 b) £1,600 c) £1,450 d) £1,750
E10-5A Excise and Sales Tax Calculations Barnes Company has just billed a customer for $1,010 an amount that includes an eleven percent excise tax and a four percent state sales tax. What amount of revenue is recorded? Prepare a general journal entry to record the transaction on the books of Barnes Company.
7 Taxable income Marginal tax rate 0-12.000 € 0% 12.001-30.000€ 29% 30.001-75.000 € 39% άνω 75.000 € 40% Based on the data in the table above, calculate the total tax and the average tax rate for each of the following individuals:(i) A part-time employee with an annual income of € 8,000.(ii) A full-time employee with an annual income of € 35,000.(iii) A manager of a multinational company with an annual income of € 500,000.
Range Rover Inc. had taxable income of $152,000 for the year. The GAAP basis of accounts receivable (net) $9,600 less than the tax basis of accounts receivable. Assuming a tax rate of 25%, record the income tax journal entry on December 31. Assume zero beginning balances in deferred tax accounts Note: faline in a journal entry ant required for the transaction select N/A as the account names and leave the Dr. and Cr. answers blank (zero) Dr. Account Name Date Dec 31 income Tax Expose Income Tax Payate Deferred Tax Asset Tocesant income
The following income statement does not reflect intraperiod tax allocation. INCOME STATEMENT For the Fiscal Year Ended March 31, 2018 ($ in millions) Revenues $1,010 (422) Cost of goods sold Gross profit Operating expenses 588 (204) (110) Income tax expense Income before discontinued operations Loss from discontinued operations, net of tax 274 (109) $ 165 Net income The company's tax rate is 40%. Required: Recast the income statement to reflect intraperiod tax allocation. (Loss amounts should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Income Statement For the fiscal year ended March 31, 2018 (S in millions) Gross profit (loss) Operating expenses Income from continuing operations before income taxes Income before discontinued operations Net income (loss)
Cullumber Inc.'s only temporary difference at the beginning and end of 2024 is caused by a $3.75 million deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equal installments in 2025 and 2026. The related deferred tax liability at the beginning of the year is $1,125,000. In the third quarter of 2024, a new tax rate of 20% is enacted into law and is scheduled to become effective for 2026. Taxable income for 2024 is $6,250,000, and taxable income is expected in all future years.
Targetmax Sdn Bhd trades kitchen appliances in Johor Bharu. The company closes its accounts on 31 October annually. The estimated tax payable submitted via Form CP204 for the year assessment 2020 was RM480,000. Required: a. Identify the due date and amount to be paid by Targetmax Sdn Bhd for the submission of its first monthly tax instalment for the year of assessment 2020. b. Discuss briefly the procedure to revise the estimated tax payable for Targetmax Sdn Bhd
Example 4-9 From the above example, if you indicate separately on Robinson’s paycheck stub the amount of each payment, the amount of federal income tax to be withheld is computed as follows: Taxes Withheld Regular monthly earnings $2,400 $ 37.00 (from wage-bracket tax tables*) Quarterly bonus 4,600 1,012.00 ($4,600 × 22%) Totals $7,000 $ 1,049.00 The calculation of Robinson’s federal income tax for the quarter would be computed as follows: Taxes Withheld Regular monthly earnings $2,400 $37.00 × 3 months = $ 111.00 (from wage-bracket tables*) Quarterly bonus 4,600 1,012.00 ($4,600 × 22%) $1,123.00 *The percentage table could also be used. Note: OASDI and HI withholdings are calculated on total earnings per pay period multiplied by number of pay periods and then added together to arrive at a quarter’s total withholding. Quarterly and year-to-date information would appear on Robinson’s employee earnings record. The…