Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
26th Edition
ISBN: 9781305714731
Author: Warren/Reeve/Duchac
Publisher: Cengage
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Question
Chapter 12, Problem 12.28EX
a.
To determine
It is that form of organization which is owned and managed by two or more persons who invest and share the
The revenue per employee for the year 2017 and 2016.
b.
To determine
To interpret: The trend between the two years.
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ABC Ltd received $15,000 on the 1st of July 2015 from one of its customers for services expected to be completed by December 31 on the equal monthly paces. If 45% of the requested services performed by the end of September, how would ABC record this revenue?
Select one:
Dr Service Revenue - $7,500 Cr Unearned Service Revenue - $7,500
Dr Service Revenue - $6,750 Cr Unearned Service Revenue - $6,750
Dr Unearned Service Revenue - $6,750 Cr Service Revenue - $6,750
Dr Unearned Service Revenue - $7,500 Cr Service Revenue - $7,500
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engage-
ment, up to six months after services commence. Alsup recognizes service revenue for financial reporting pur-
poses when the services are performed. For tax purposes, revenue is reported when fees are collected. Service
revenue, collections, and pretax accounting income for 2015-2018 are as follows:
Pretax Accounting
Collections
Service Revenue
Income
$650,000
750,000
$620,000
$186,000
2015
2016
770,000
250,000
2017
715,000
700,000
220,000
2018
700,000
720,000
200,000
There are no differences between accounting income and taxable income other than the temporary difference
described above. The enacted tax rate for each year is 40%.
Required:
1. Prepare the appropriate journal entry to record Alsup's 2016 income taxes.
2. Prepare the appropriate journal entry to record Alsup's 2017 income taxes.
3. Prepare the appropriate journal entry to record Alsup's 2018 income taxes.
(Hint:…
Superior Cleaning Services, LLC, provides cleaning services for office buildings. The firm
has 10 members in the LLC, which did not change between 20Y8 and 20Y9. During 20Y9,
the business terminated two commercial contracts. The following revenue and employee
information is provided:
20Y9
20Υ8
Revenues (in thousands)
$16,200 $18,400
Number of employees (excluding members)
150
200
For 20Y9 and 20Y8, determine the revenue per employee (excluding members).
a.
b. Interpret the trend between the two years.
Chapter 12 Solutions
Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 12.1APECh. 12 - Prob. 12.1BPECh. 12 - Prob. 12.2APECh. 12 - Prob. 12.2BPECh. 12 - Prob. 12.3APECh. 12 - Prob. 12.3BPECh. 12 - Prob. 12.4APECh. 12 - Prob. 12.4BPECh. 12 - Prob. 12.5APECh. 12 - Prob. 12.5BPECh. 12 - Prob. 12.6APECh. 12 - Prob. 12.6BPECh. 12 - Prob. 12.7APECh. 12 - Prob. 12.7BPECh. 12 - Prob. 12.1EXCh. 12 - Prob. 12.2EXCh. 12 - Prob. 12.3EXCh. 12 - Prob. 12.4EXCh. 12 - Prob. 12.5EXCh. 12 - Prob. 12.6EXCh. 12 - Prob. 12.7EXCh. 12 - Prob. 12.8EXCh. 12 - Prob. 12.9EXCh. 12 - Prob. 12.10EXCh. 12 - Prob. 12.11EXCh. 12 - Prob. 12.12EXCh. 12 - Prob. 12.13EXCh. 12 - Prob. 12.14EXCh. 12 - Prob. 12.15EXCh. 12 - Prob. 12.16EXCh. 12 - Prob. 12.17EXCh. 12 - Statement of members equity, admitting new member...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Prob. 12.21EXCh. 12 - Prob. 12.22EXCh. 12 - Liquidating partnershipscapital deficiency...Ch. 12 - Prob. 12.24EXCh. 12 - Prob. 12.25EXCh. 12 - Prob. 12.26EXCh. 12 - Prob. 12.27EXCh. 12 - Prob. 12.28EXCh. 12 - Prob. 12.1APRCh. 12 - Prob. 12.2APRCh. 12 - Prob. 12.3APRCh. 12 - Prob. 12.4APRCh. 12 - Prob. 12.5APRCh. 12 - Prob. 12.6APRCh. 12 - Prob. 12.1BPRCh. 12 - Prob. 12.2BPRCh. 12 - Prob. 12.3BPRCh. 12 - Prob. 12.4BPRCh. 12 - Prob. 12.5BPRCh. 12 - Statement of partnership liquidation On August 3,...Ch. 12 - Prob. 12.1CPCh. 12 - Prob. 12.2CPCh. 12 - Revenue per employee The following table shows key...Ch. 12 - Prob. 12.4CP
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