4. What amount should be reported as adjusted net income for 2019? 5. What amount should be reported as adjusted earnings on December 31, 2019? Bexley Company is in the process of adjusting the books at the end of 2019. The accountingrecords revealed the following information:The entity failed to accrue sales commissions at the end of 2017 and 2018.2017220,0002018140,000In each case, the sales commissions were paid and expensed in January of the followingyear.Errors in ending inventory for the last three years:2017400,000 understated2018540,000 overstated2019150,000 understatedThe unadjusted retained earnings balance on January 1, 2019 is P12,600,000 and theunadjusted net income for 2019 was P3,000,000.Dividends of P1,750,000 were declared during 2019.

The answer has been mentioned below.

Answered: unt should be reported as adjusted net…

Business

Accounting

unt should be reported as adjusted net income for 2019? 5. What amount should b

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: State the due date for submission of the tax return for a sole trader whose financial year- end is…

A: The income tax return of a proprietorship that doesn't require audit is due on 31st July. In case…

Q: for tax year 2022? a) In 2022, a portion of charitable contributions may be an above the line…

A: The taxpayers pay taxes on the taxable income. The taxable income is used to determine the tax…

Q: Lance has income from the following sources in 2021: Certificate of Deposit (CD) US savings bond…

A: >Schedule B of Form 1040 is filled in to report the Interest Income and Ordinary dividend.…

Q: Which of the following U.S. programs has a cap on the amount of income that can be taxed? Question…

A: The social security tax is a type of tax that is charged by the U.S. government. this tax is for the…

Q: What percentage of medical insurance payments can self-employed taxpayers deduct for adjusted gross…

A: Self employed individuals are those individuals stated through IRS as the people who offer services…

Q: Question 7: Contributions to which of the following retirement plans are subject to federal income…

A: When employees are paid their paycheck, certain amounts will be withheld as federal income tax. This…

Q: The accounting records of Sandhill Inc. show the following data for 2020 (its frst year of…

A: Taxable income is the fraction of your gross income used to determine how much tax you owe in a…

Q: tax applicable to Life Insurance Premiums.

A: Life Insurance Premium: Life insurance premiums are amount we have to pay for availing the life…

Q: Rent payments that are processed through a third-party net work after March 11, 2021, should be…

A: GIVEN Rent payment that are proceed through a 3rd party network after March 11,2021 should be…

Q: the idual

A: 2023 Married Filing Separately Tax Brackets as per IRS rules 2023 USAIf taxable income is:The tax…

Q: Which method would result in the smallest income amount for 2026?

A: Straight line method 2021 = $101,250Double decline = $182,813Sum of years digits = $157,500

Q: How are payments of alimony and separate maintenance under agreements and modifications finalized…

A: Alimony Payment - It is a payment between current or former spouses as the result of a marriage…

Q: What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022

Q: Medical Insurance, a pre-tax deduction? Thank you,

A: Payroll deductions are wages withheld from an employee’s total earnings for the purpose of paying…

Q: What is taxation? Are there any benefits to filing early? And what happens if I file after the…

A: Taxation is defined as the means through which the tax authorities and the government imposes the…

Q: Which of the following can be adjustment(s) to gross income on the 1040 form? Multiple correct…

A: Form 1040 indicates what is considered by the individual taxpayers for sile the tax with the…

Q: What are some common examples of income, and what are some common examples of items excluded from…

A: Income means the money or any equivalent value receives by individual or business, in exchange of…

Q: A taxpayer providing services provided the following: Description Payment of expenses current period…

A: Accrual basis of accounting says that all expenses incurred in that particular period should be…

Q: Do post-retirement benefits have a comparable accounting process to pension benefits?

A: The answer:…

Q: How much is the income tax payable assuming the taxable year is 2021? a. 330,000

A: Corporate tax is the tax liability calculated on the income earned by the company. It is reported…

Q: Define Employee Retirement Income Security Act (ERISA)

A: The 1974 Employee Retirement Income Security Act secures American pension resources by enforcing…

Q: An individual taxpayer can adopt either the calendar or fiscal year period for purposes of filing…

A: Tax return:- A tax return is referred as the form or forms that is filled with a tax authority and…

Q: A taxpayer engaged in service business provides you with the following: Description 2019 2020…

A: accrual method is a method of accounting in which accounting transactions are recorded according to…

Q: Which one of the following amounts represents the maximum amount that you may deduct for moving…

A: Moving expenses: These are the expenses associated related to your moving your household’s goods and…

Q: is the tax payment deadline for all individual taxpayers regardless if they have self-employment or…

A: 31 december 2021 is the extended tax payment deadline for all individual taxpayers regardless if…

Q: Based on 2022 Tax Table, federal tax payable before tax credit of a person whose net income of…

A: The amount of tax that a person or organization owes to the government in relation to their taxable…

Q: 2022 Taxable Income and Income tax liability (before any credits)

A: Taxable income refers to the portion of an individual's income that is subject to taxation by the…

Q: what are the legal provisions related to Taxable Income, Medicare Levy, and Medicare Levy surcharge?

A: Medicare Levy Medicare levy helps in funding the Australia's health system known medicare Medicate…

Q: Hw.68. what is the maximum earned income tax credit that a taxpayer can claim in 2021? $4,000,…

A: Low- to medium-income employees and their families can benefit from tax breaks owing to the Earned…

Q: After payroll taxes, what other deductions will come out of your paycheck?

A: Paycheck deductions refer to the amounts of money that are withheld or deducted from an employee's…

Q: All withdrawals from RRSPs are included in income in the year of withdrawal unless withdrawn under…

A: As per Canada taxation, an RRSP account holder may withdraw money or investments at any age. If any…

Q: 8. (a) Identify the three types of employer payroll taxes. (b) How are tax liability accounts and…

A: The sum of wages and compensation paid to staff in return for services performed in the firm is…

Q: How do I calculate self-employment taxes with self-employment earnings. For example Bob Marks has…

A: To calculate self-employment taxes for 2021, follow these steps: Determine your net…

Q: What are the benefits provided by Employee Retirement Income Security Act?

A: The Employee Retirement Income Security Act is an organizational law that recognizes the minimum…

Q: 13. Pat generated self-employment income in 2019 of $76,000. The self-employment tax is: a. b. C. d.…

A: Self-employment income in 2019 = $76,000Self-employment tax =?

Q: For the current year, the maximum percentage of social security benefits which might be included In…

A: The question is related to Social Security benefit.

Q: What is a key requirement for filing individual income tax returns? a) Providing proof of employment…

A: The correct answer is:b) Reporting all sources of incomeExplanation:One key requirement for filing…

Q: Determine if this shall result in recognition of liabilities 11. withholding of taxes on employees'…

A: The employer will need to pay the amount of tax withhold on employees compensation to government.

Q: Question 5: Which of the following employee taxes is matched by the employer? Answer: A. State…

A: Introduction:- Payroll taxes are the state and federal taxes. As an employer, are responsible to…

Q: Which of the following is not an adjustment to arrive at adjusted gross income? O A. Self-employed…

A: AGI is the amount of the total income earned during the tax year by the taxpayer. It is adjusted by…

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

4. What amount should be reported as adjusted net income for 2019?

5. What amount should be reported as adjusted earnings on December 31, 2019?

Bexley Company is in the process of adjusting the books at the end of 2019. The accounting
records revealed the following information:
The entity failed to accrue sales commissions at the end of 2017 and 2018.
2017
220,000
2018
140,000
In each case, the sales commissions were paid and expensed in January of the following
year.
Errors in ending inventory for the last three years:
2017
400,000 understated
2018
540,000 overstated
2019
150,000 understated
The unadjusted retained earnings balance on January 1, 2019 is P12,600,000 and the
unadjusted net income for 2019 was P3,000,000.
Dividends of P1,750,000 were declared during 2019.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

why are we not including the gross salaries and inocome taxes for the total payroll expense this pay period?
What is the annual social security withholding for an executive whose annual gross earnings are 98485?
Please help me with part a.
Task 3. Under the provision of ITO, 2001 list down the person required to file income tax return and what Are the due dates of filing if income tax returns?
1. Employees are subject to taxes withheld from their paychecks. a. List the federal taxes withheld form most employee's paychecks. b. Give the title of the accounts credited by amounts withheld. c. Social security tax d. Federal unemployment compensation tax e. Sate unemployment compensation tax
How does accounting for postretirement benefits similar in most respects to accounting for pension benefits?
Form 940 for 2020 (IRS), how do I determine the total payments to all employees?
What are the 2019 tax rates for FICA Social Security and FICA Medicare? What are the 2019 maximum taxable earnings amounts for each of these taxes?
The payment of supplier's account is debited to accounts receivable. What is the effect of the error in the net income of the current period and in subsequent period? Cannot be determined based.on the given information Overstated O Understated O No effect
57. What is the adjustment that must be made to taxable income in computing alternative minimum taxable income for 2020, assuming that an individual purchased an office building on january 8 for $400,000?
The following relates to the different income components: Employment or loss Business income or loss Property income or loss Capital gain or loss Use the above details to answer questions 11 and 12. What are the most possible sources of income an individual taxpayer could have in a year? Question 14 options: a) i and ii only b) i only c) ii and iv only d) All of the above
A taxpayer filed his income tax return on June 30, 2019. The deadline for the return was April 15, 2019. If he has P40,000 net tax due, how much was the surcharge paid? a. P20,000 b. P10,000 c. P8,000 d. P4,800 e. Answer not given