Tower Company failed to recognize accruals and prepayments during the first year of operations 201 The income before tax is 5,000,000 The accruals and prepayments not recognized at the end of the year 2019 are: Prepaid insurance 200,000 Accrued Wages 250,000 Rent Revenue collected in advance 300,000 Interest Receivable 100,000 A1.What is the correct income before tax for 2019

Tower Company failed to recognize accruals and prepayments during the first year of operations 201 The income before tax is 5,000,000 The accruals and prepayments not recognized at the end of the year 2019 are: Prepaid insurance 200,000 Accrued Wages 250,000 Rent Revenue collected in advance 300,000 Interest Receivable 100,000 A1.What is the correct income before tax for 2019

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Buffalo Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. (a) Your Answer Correct Answer (Used) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit…
In December of 2019, a company received consulting services of $100,000. No entry was recorded for these service in 2019. The invoice for the services was received in January 2020 and recorded by debiting consulting expense and crediting accounts payable. This error was discovered in 2020 and was determined to be a material error. What is the impact of the error on the net income of 2019 and 2020? Provide the proper correcting journal enntry assuming a 30% tax rate.
Please do not give image format
Parker Ltd had the following opening balances for the current year beginning 1 July 2020: Deferred tax asset (DTA) $24 000 Deferred tax liability (DTL) $15 000 If the company tax rate decreased from 30% to 25%, the adjusting journal entry would include: a. Dr DTL 3 000; Cr DTA 4 800 b. Cr DTL 4 000; Dr DTA 2 500 c. Cr DTA 4 000; Dr DTL 2 500 d. Cr DTL 4 800; Dr DTA 3 000 e. Cr DTA 1 200; Dr DTL 750
On January 31, 2020, Allison company wrote off and uncollectible accounts of $8500. The company uses the allowance method for bad debts. The write off would cause total current assets to be? A decreased by $8,500, Increased by $8500 increase by $17,000 or will it remain the same amount?
Please answer in good accounting form. Thankyou
None
Pls help
The CFO has asked you to calculate the taxable income and prepare journal entries for Rudolf Ltd at 30th June 2022. Accounting loss before tax Impairement loss warranty expense Fines expense Doubtful Debts. Depreciation Plant warranty paid** Depreciation for tax - Plant.** Bad debts written off. ** (80,000) 1,000 10,000 5,000 4,000 20,000 8,000 30,000 10,000 Note These items ** are deductible for tax purposes