Required information [The following information applies to the questions displayed below.] RunHeavy Corporation (RHC) is a corporation that manages a local band. It had the following activities during its first month. a. RHC was formed with an investment of $10,100 cash, paid in by the leader of the band on January 3 in exchange for common stock. b. On January 4, RHC purchased music equipment by paying $1,300 cash and signing an $8,800 promissory note payable in three years. c. On January 5, RHC booked the band for six concert events, at a price of $2,700 each, but no cash was collected yet. d. Of the six events, four were completed between January 10 and 20. e. On January 22, cash was collected for three of the four events. f. The other two bookings were for February concerts, but on January 24, RHC collected half of the $2,700 fee for one of them. g. On January 27, RHC paid $2,440 cash for the band's travel-related costs. h. On January 28, RHC paid its band members a total of $2,190 cash for salaries and wages for the first three events. i. As of January 31, the band members hadn't yet been paid wages for the fourth event completed in January, but they would be paid in February at the same rate as for the first three events. j. As of January 31, RHC has not yet recorded the $114 of monthly depreciation on the equipment. k. Also, RHC has not yet paid or recorded the $66 interest owed on the promissory note at January 31. 1. RHC is subject to a 25% tax rate on the company's income before tax.
Required information [The following information applies to the questions displayed below.] RunHeavy Corporation (RHC) is a corporation that manages a local band. It had the following activities during its first month. a. RHC was formed with an investment of $10,100 cash, paid in by the leader of the band on January 3 in exchange for common stock. b. On January 4, RHC purchased music equipment by paying $1,300 cash and signing an $8,800 promissory note payable in three years. c. On January 5, RHC booked the band for six concert events, at a price of $2,700 each, but no cash was collected yet. d. Of the six events, four were completed between January 10 and 20. e. On January 22, cash was collected for three of the four events. f. The other two bookings were for February concerts, but on January 24, RHC collected half of the $2,700 fee for one of them. g. On January 27, RHC paid $2,440 cash for the band's travel-related costs. h. On January 28, RHC paid its band members a total of $2,190 cash for salaries and wages for the first three events. i. As of January 31, the band members hadn't yet been paid wages for the fourth event completed in January, but they would be paid in February at the same rate as for the first three events. j. As of January 31, RHC has not yet recorded the $114 of monthly depreciation on the equipment. k. Also, RHC has not yet paid or recorded the $66 interest owed on the promissory note at January 31. 1. RHC is subject to a 25% tax rate on the company's income before tax.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
12. Record income tax expense at 25% on the company's income before tax.
i don't know what numbers to pull I got all the other ones
![Help
Required information
[The following information applies to the questions displayed below.]
RunHeavy Corporation (RHC) is a corporation that manages a local band. It had the following activities during its first
month,
a. RHC was formed with an investment of $10,100 cash, paid in by the leader of the band on January 3 in exchange for
common stock.
b. On January 4, RHC purchased music equipment by paying $1,300 cash and signing an $8,800 promissory note payable
in three years.
c. On January 5, RHC booked the band for six concert events, at a price of $2,700 each, but no cash was collected yet.
d. Of the six events, four were completed between January 10 and 20.
e. On January 22, cash was collected for three of the four events.
f. The other two bookings were for February concerts, but on January 24, RHC collected half of the $2,700 fee for one of
them.
g. On January 27, RHC paid $2,440 cash for the band's travel-related costs.
h. On January 28, RHC paid its band members a total of $2,190 cash for salaries and wages for the first three events.
1. As of January 31, the band members hadn't yet been paid wages for the fourth event completed in January but they
would be paid in February at the same rate as for the first three events.
j. As of January 31, RHC has not yet recorded the $114 of monthly depreciation on the equipment.
k. Also, RHC has not yet paid or recorded the $66 interest owed on the promissory note at January 31.
7. RHC is subject to a 25% tax rate on the company's income before tax.
%24
< Prev
9 10 11
of 11
Next
>
55°F Clear](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4f683d05-e19f-4d26-8333-7a9550355ebb%2F60e04b7f-11df-465b-93b2-84fef68b517c%2F0wn0w4p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Help
Required information
[The following information applies to the questions displayed below.]
RunHeavy Corporation (RHC) is a corporation that manages a local band. It had the following activities during its first
month,
a. RHC was formed with an investment of $10,100 cash, paid in by the leader of the band on January 3 in exchange for
common stock.
b. On January 4, RHC purchased music equipment by paying $1,300 cash and signing an $8,800 promissory note payable
in three years.
c. On January 5, RHC booked the band for six concert events, at a price of $2,700 each, but no cash was collected yet.
d. Of the six events, four were completed between January 10 and 20.
e. On January 22, cash was collected for three of the four events.
f. The other two bookings were for February concerts, but on January 24, RHC collected half of the $2,700 fee for one of
them.
g. On January 27, RHC paid $2,440 cash for the band's travel-related costs.
h. On January 28, RHC paid its band members a total of $2,190 cash for salaries and wages for the first three events.
1. As of January 31, the band members hadn't yet been paid wages for the fourth event completed in January but they
would be paid in February at the same rate as for the first three events.
j. As of January 31, RHC has not yet recorded the $114 of monthly depreciation on the equipment.
k. Also, RHC has not yet paid or recorded the $66 interest owed on the promissory note at January 31.
7. RHC is subject to a 25% tax rate on the company's income before tax.
%24
< Prev
9 10 11
of 11
Next
>
55°F Clear
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education