M 20 The following information was extracted from the records of Terra Ltd. for the year ended 30June 2024.Accounts receivableAccumulated depreciation - motor vehiclesAllowance for doubtful debtsBad debts expenseDeferred tax assetDeferred tax liabilityInsurance ExpenseInterest payableMotor vehiclesPrepaid insuranceRent receivableRent revenueAdditional informationTerra LTDas 30 June 2024✓ Interest expenses✓Estimated useful-life for tax purposes✓ Estimated useful-life for accountingRent receivedOpening balance for prepaid insuranceOpening balance for the allowance for doubtful debtsTax rateProfit before tax90,000(44,000)(18,000)20,00010,7505,39012,8007,000220,00024,0003,4005,00010 years15 years2,00018008,0003,00030%341,200Required:a. Prepare the current tax worksheet and related journal entries.b. Prepare the deferred tax worksheet and related journal entries.

INTRODUCTION Current tax: The amount of income tax that has been found to be due (salvage value) in…

The following information was extracted from the records of Terra Ltd. for the year ended 30 June 2024. Accounts receivable Accumulated depreciation - motor vehicles Allowance for doubtful debts Bad debts expense Deferred tax asset Deferred tax liability Insurance Expense Interest payable Motor vehicles Prepaid insurance Rent receivable Rent revenue Terra LTD as 30 June 2024 Additional information ✔Estimated useful-life for tax purposes ✓ Estimated useful-life for accounting ✔Rent received 90,000 (44,000) (18,000) 20,000 10,750 5,390 12,800 7,000 220,000 24,000 3,400 5,000 Opening balance for prepaid insurance ✓ Opening balance for the allowance for doubtful debts ✓ Interest expenses ✓ Tax rate ✓Profit before tax 10 years 15 years 2,000 1800 8,000 3,000 30% 341,200 Required: a. Prepare the current tax worksheet and related journal entries. b. Prepare the deferred tax worksheet and related journal entries.

The following information was extracted from the records of Terra Ltd. for the year ended 30 June 2024. Accounts receivable Accumulated depreciation - motor vehicles Allowance for doubtful debts Bad debts expense Deferred tax asset Deferred tax liability Insurance Expense Interest payable Motor vehicles Prepaid insurance Rent receivable Rent revenue Terra LTD as 30 June 2024 Additional information ✔Estimated useful-life for tax purposes ✓ Estimated useful-life for accounting ✔Rent received 90,000 (44,000) (18,000) 20,000 10,750 5,390 12,800 7,000 220,000 24,000 3,400 5,000 Opening balance for prepaid insurance ✓ Opening balance for the allowance for doubtful debts ✓ Interest expenses ✓ Tax rate ✓Profit before tax 10 years 15 years 2,000 1800 8,000 3,000 30% 341,200 Required: a. Prepare the current tax worksheet and related journal entries. b. Prepare the deferred tax worksheet and related journal entries.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 32BEB

See similar textbooks

Similar questions

The Statement of Financial Position of Hawkeye as at 30 June 2022 showed the following assets and liabilities: 2022 $ Assets Cash Accounts receivables Allowance for doubtful debts Inventory Rent Receivable Plant Accumulated Depreciation - Plant Deferred Tax Asset Liabilities Accounts Payable Unearned rent revenue Provision for annual leave Deferred Tax Liability Additional information 15 000 30,000 (3,000) 13,500 7,000 100,000 (40,000) ? 19,000 5,000 2,500 ? 2021 $ 12 500 40,000 (5,000) 10,500 7,500 100,000 (30,000) 3,400 16,000 3,500 2,000 5,200 a. Accumulated depreciation of plant for tax purposes was $55,000 as at 30 June 2022. b. The tax rate is 30%. Required Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2022.
Compute RNOA with Disaggregation Refer to the balance sheet information below for Home Depot. Jan. 28, Feb. 3, 2019 2018 $14,357 $13,918 Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Net sales Operating expense before tax Net operating profit before tax (NOPBT) Other expense Income before tax Tax expense Net income $ millions NOPAT $ Numerator a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%. Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 RNOA. RNOA Numerator Average NOA $ Numerator Net income $ 605 1,222 $14,962 $15,140 $5,671 $5,456 9,929 9,190 $15,600 $14,646 $36,789 31,509 ◆ Average NOA x S ♦ OPAT x S 5,280 331 4,949 1,168 $3,781 b. Disaggregate RNOA into components of profitability (NOPM) and productivity (NOAT). Assume a statutory tax rate of 22%.…
The following information is available for the first three years of operations for Swift Company: (file attached) Requirements : 1. Prepare a schedule comparing depreciation for financial reporting and tax purposes 2. Determine the deferred tax (asset) or liability at the end of 2018 3. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019
The following information was extracted from the records of Lodh Ltd for the year ended 30 June 2021. Lodh LTD Statement of financial position (extract) As at 30 June 2021 Assets Accounts Receivable $50,000 Allowance for doubtful debts (4,000) $46,000 Plant 200,000 Accumulated depreciation - Plant (50,000) 150,000 Liabilities Interest Payable 2,000 Provision for long service leave 10,000 Additional information · The accumulated tax depreciation for machines at 30 June 2021 was $66 667. · Long service leave has not been taken by any employee during the year. · The tax rate is 30%. Required Prepare a (partial) deferred tax worksheet to identify the TTD and DTD from the above information [You are required to input CA (Carrying Amount) and TB (tax Base) only in the response…
Please show each step of calculation. Thanks in advance.
BT21 Corp. collected P24,700 in interest during 2021. BT21 showed P3,700 in interest receivable on its December 31, 2021 statement of financial position and P10,600 on December 31, 2020. How much is the Interest Revenue reported on BT21 Company’s statement of comprehensive income for 2021?
A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% Required: 1. How much is the taxable income?2. How much is the accounting income subject to tax?3. How much is the permanent difference?4. How much is the net temporary differences?
Please answer it in good accounting form
Prepare the income statement for 2023, beginning with the line "income before income taxes.
BTS Corp. collected P24,700 in interest during 2021. BTS showed P3,700 in interest receivable on its December 31, 2021 statement of financial position and P10,600 on December 31, 2020. How much is the Interest Revenue reported on BTS Company’s statement of comprehensive income for 2021?
How much is the balance of AMSTERDAM's retained earnings account at December 31, 2021?
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