The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2016,included the following income accounts:Account TitleCreditsDebitsSales revenue2,300,0001,400,000Cost of goods soldSelling and administrative expensesInterest expenseUnrealized holding gains on investment securities420,00040,00080,000The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 30%. One millionshares of common stock were outstanding throughout 2016.Required:Prepare a single, continuous multiple-step statement of comprehensive income for 2016, including appropriateEPS disclosures.

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Answered: The trial balance for Lindor…

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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company reported $58,000 of depreciation expense on its income statement in 2015 and $32,000 in 2016. On its tax returns, Morgan deducted $84,000 for depreciation in 2015 and $94,000 in 2013. The 2016 tax return shows a tax obligation (liability) of $38,400 based on a 40% tax rate.Deferred Income Taxes What is the deferred tax liability for 2016?
Romie Ltd is preparing accounts for the year ended 31 December 20X5. The company has an estimated tax charge of $35,000 for the year ended December 20X5. The trial balance includes an entry of $2,000 relating to an over provision of tax in the previous financial year. What is the charge for tax in the statement of profit or loss for the year ended December 20X5?
COD Corporation's accounting records include the following items, listed in no particular order, at December 31, 2025: View the data. The income tax rate for COD Corporation is 21%. Prepare COD Corporation's income statement for the year ended December 31, 2025. Omit earnings per share. Use the multi-step format. Prepare the income statement through the income before taxes, then complete the income statement through the net income. (Use parentheses or a minus sign to enter amounts for Other Expenses.) COD Corporation Income Statement Year Ended December 31, 2025 Data Income Before Income Taxes - Other Income and (Expenses) $ Net Sales Revenue Gain on Discontinued Operations (12,000) 167,800 2,400 Cost of Goods Sold 80,000 Operating Expenses 55,000 Print Done ☑
At year-end 2002, Yung.com had notes payable of $1200, accounts payable of $2400, and long- term debt of $7000. Corresponding entries for 2003 are $1600, $2000, and $2000. Asset values are below. During 2003, Yung.com had sales of $10000, cost of goods sold of $400, depreciation of $100, and interest paid of $150. The (average) tax rate is 21%, and all taxes are paid currently. The company has 100 shares of common stock outstanding with a stock price of $15 at the end of 2003. Total dividends paid is $120 in 2003. Current Asset Cash Accounts receivable Marketable securities 400 Inventory Fixed Assets 2002 Net Fixed Asset (Plant&Equipment) $800 900 1800 2003 $900 300 800 2000 $2000 $9000 In 2003, the Market-value-to-Book-value ratio is %
Dan plc is preparing its financial statements for the year ended 31 December 20X7. Its initial trial balances show the following balance: Income tax payable on 1 January 20X7 Income tax paid M 337,850 £ 351,083 The income tax paid during the year ended 31 December 20X7 completely settles the 20X6 liability. The total estimated tax due on the profits for the year ended 31 December 20X7 is 402,917 Dan plc should record the following journal at 31 December 20X7 A. Debit Income tax expense £389,684; Credit Income tax payable £51,834, Credit Income tax paid £337,050 B. Debit Income tax expense £389,684, Credit Income tax payable £65,067, Credit Income tax paid £324,617 C. Debit Income tax expense £402,917, Credit Income tax payable £65,067, Credit Income tax paid £337,850 D. Debit Income tax expense £402,917, Credit Income tax payable £51,834; Credit Income tax paid £351,083
The balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance for Doubtful Accounts of $11,783 (credit balance). The company’s total sales during 2019 were $8,350,200. Of these, $1,252,530 were cash sales the rest were credit sales. By the end of the year, the company had collected $6,291,700 of accounts receivable. It also wrote off an account for $10,380. Prepare the journal entry for collections. Account Names DR CR Blank 1. Fill in the blank, read surrounding text. Blank 2. Fill in the blank, read surrounding text. Blank 3. Fill in the blank, read surrounding text. Blank 4. Fill in the blank, read surrounding text. Blank 5. Fill in the blank, read surrounding text. Blank 6. Fill in the blank, read surrounding text. Blank 7. Fill in the blank, read surrounding text. Blank 8. Fill in the blank, read surrounding text. Blank 9. Fill in the blank, read surrounding text. Blank 10. Fill in the blank, read surrounding text. Blank 11.…
Marr Company reported rental revenue of P2,210,000 in its cash basis income tax return for the year ended November 30, 2010 . Additional information is as follows: Rent receivable – November 30, 2010 1,060,000; Rent receivable – November 30, 2009 800,000; Under the accrual basis, Marr should report rental revenue of Choices; 1,920,000 1,950,000 2,440,000 2,470,000
Ocean Ltd recorded an accounting profit before tax of $50,000 for the year ended 30 June 2020. Included in the accounting profit were the following income and expenses: Rent revenue Interest revenue Bad debts expense An extract of the Statement of Financial Position for 30 June 2020 revealed the following: Accounts receivable Allowance for doubtful debts Interest receivable Rent Revenue in Advance $46,000 $28,000 $34,000 The company tax rate is 30%. 2020 $96,000 ($44,000) $40,000 $22,000 2019 $56,000 ($18,000) $24,000 $38,000 Required: Calculate taxable income (loss) and record the necessary journal entry for current income tax expense for the year ended 30 June 2020.
Assume a company starts operations on 1/1/2013 with an equity investment of $776,750. The companies next 7 years of financial performance are listed below. Assume that the company has no permanent or temporary differences for the first three fiscal years. During fiscal 2016 the company experiences a net operating loss. The marginal corporate tax rates for each year are located on the Income Statement. Calculate taxable income (IRS), taxes payable (IRS)and tax expenses (USGAAP). How should the company accounts for the Net Operating Loss. Provide all Journal Entries & T-Accounts. Create a complete set of financial statements (I/S, SRE, B/S, SCF) for the firm for years 2013 through 2019. INCOME STATEMENT 1/1/13 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 Cash Sales - $776,750 $776,750 $776,750 $119,500 $836,500 $717,000 $746,875 Credit Sales - - - - - - - - Instalment Sales - - - - - -…
In 2018, Kardashian Inc. reported pretax accounting income of $240,000. In 2019, the company had a profit of $120,000. In 2020, the company lost $560,000. The following year, the company's accounting income was $440,000. Income for tax purposes was the same as for accounting for all years. Kardashian's tax rate was 32% for 2018 and 2019, 33% for 2020, and 34% for 2021 and subsequent years. The tax rates were all enacted by the beginning of 2018. REQUIRED: Prepare the journal entries for the years 2018 to 2021 to record income taxes. Assume that Kardashian's policy is to carry back any tax losses first, and that at the end of 2021, the loss carryforward benefits are judged more likely than not to be realized in the future.
Assume that the percentage of sales method was used instead by the company and that on December 31st, 2010 5% of 2010 ‘s credit sales are estimated to be uncollectible. Assume Sales for 2010 were 520,000 (60% relates to cash sales) You are now required to: Determine the amount to be charged to the uncollectible expense account. (1) Prepare the Allowance for uncollectible account for 2010, using this method (ii) Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31 2010
Included in the accounts of a corporate taxpayer for year ended 31st December, 2014 are the following amounts. Kk.2. Income tax paid for 2014 is $285,000 Amount to reserves is $50,000 Amount to provide for payback is $100,000 How are these treated in the profit adjustment statements?

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