Compute the net income. The adjusted trial balance of Nexus Corporation contained thefollowing information. Assume the tax rate is 21.5%.Sales revenue (credit)$378,000Sales returns and allowances (debit) $8,500Sales discounts (debit)$4,200Cost of goods sold (debit)$189,000Operating expenses (debit)$95,000Interest revenue (credit)$7.800Interest expense (debit)$2,900Compute the net income.

Step 1: Definitions Concept of Net Income:Net income is the final profit figure after subtracting…

Answered: The adjusted trial balance of Nexus…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...

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Compute the net income
Compute the net income
The following balances were taken from the books of Skysong Corp. on December 31, 2025. Interest revenue Cash Sales revenue Accounts receivable Prepaid insurance Sales returns and allowances Allowance for doubtful accounts Sales discounts Land Equipment Buildings Cost of goods sold $87,250 52,250 1,381,250 151,250 21,250 151,250 8,250 46,250 101,250 201,250 141,250 622,250 Assume the total effective tax rate on all items is 20%. Accumulated depreciation-equipment Accumulated depreciation-buildings Notes receivable Selling expenses Accounts payable Bonds payable Administrative and general expenses Accrued liabilities Interest expense Notes payable Loss from earthquake damage Common stock Retained earnings $41,250 29,250 156,250 195,250 171,250 101,250 98,250 33,250 61,250 101,250 151,250 501,250 22,250 Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round earnings per
The following balances were taken from the books of Whispering Corp. on December 31, 2025. Interest revenue Cash Sales revenue Accounts receivable Prepaid insurance Sales returns and allowances Allowance for doubtful accounts Sales discounts Land Equipment Buildings Cost of goods sold $87,500 52,500 1,391,500 151,500 21,500 151,500 8,500 46,500 101,500 201,500 141,500 622,500 Assume the total effective tax rate on all items is 20%. Accumulated depreciation-equipment $41,500 Accumulated depreciation-buildings 29,500 Notes receivable Salling expenses Accounts payable Bonds payable Administrative and general expenses Accrued liabilities Interest expense Notes payable Loss from earthquake damage Common stock Retained earnings WHISPERING CORP. Income Statement 156,500 195,500 171,500 101,500 98,500 33,500 61,500 101,500 $ 151,500 Prepare a multiple-step income statement: 100,000 shares of common stock were outstanding during the year. (Round earnings per share to 2 decimal places, e.g.…
In the quarter ended 31 March 20X2, Chas had taxable sales, net of sales tax, of $90,000 and taxable purchases, net of sales tax, of $72,000. If the rate of sales tax is 10%, how much sales tax is due? A $1,800 receivable В $2,000 receivable C $1,800 payable D $2,000 payable
Sneasler Company appropriately withholds 9.75% on all of its sales transactions. During the period, it sells $10,000 of goods. The journal entry to remit the sales tax to the tax authorities will include a: Group of answer choices Debit to sales tax payable Credit to sales tax payable Credit to sales revenue Debit to cash
HST of 13% collected on taxable sales of $900 results in a journal entry that includes a. a debit to Sales Tax Receivable for $117. b. a debit to Sales Tax Payable for $117. c. a credit to Sales for $117. d. a credit to Sales Tax Payable for $117.
A company's trial balance shows a debit balance of $2.1 million brought forward on current tax and a credit balance of $5.4 million on deferred tax. The tax charge for the current year is estimated at $16.2 million and the carrying amounts of net assets are $13 million in excess of their tax base. The income tax rate is 30% What amount will be shown as income tax in the statement of profit or loss for the year? A $15.6 million B $12.6 million C $16.8 million D $18.3 million
Sales (including sales tax) amounted to $27,612.50, and purchases (excluding sales tax) amounted to $18,000. What is the balance on the sales tax account, assuming all items are subject to sales tax at 17.5%?
The balances of certain accounts of Vanessa Corporation on April 30, 20X1, were as follows: Sales Sales returns and allowances $ 216,000 2,600 The firm's net sales are subject to an 6 percent sales tax. Prepare the general journal entry to record payment of the sales tax payable on April 30, 20X1. View transaction list View journal entry worksheet es No Date General Journal 1 April 30, 20X1 Sales Sales tax payable Debit Credit
Sheridan Company has total proceeds (before segregation of sales taxes) from sales of $9180. If the sales tax is 8%, the amount to be credited to the account Sales Revenue is: O $8468. O $9180. O $9752. O $8500.
Judon Corp. provides the following information from its annual report. Assume all revenues are credit sales. The cost of revenues can be used as an approximation of the company's purchases for the year. Revenues $ 546,190 Cost of revenues $ 340,275 Inventories as of 31 January 2022 $44,064 Inventories as of 31 January 2021 $41,020 Accounts payable as at 31 January 2022 $58,600 Accounts payable as at 31 January 2021 $51,800 Accounts receivable as at 31 January 2022 $7,482 Accounts receivable as at 31 January 2021 $5,434 Compute the following financial ratios for Judon Corp for 2022 1. Account Receivable Turnover Ratio (Times)? 2. Collection Interval (DSO) / Days? 3. Inventory Turnover Ratio (Times) ? 4. Holding Interval (Days) ? 5. Account Payable Turnover Ratio (Times)? 6.Payment Interval (Days)? 7. Does Judon Corp need short-term financing? 8. Using the information provided, compute the change in operating working captial

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