
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Question
Chapter 21, Problem 10SPB
To determine
Journalize the given transactions in the books of Company K.
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HAROUN COMPANY
Comparative Income Statements
For Years Ended December 31, 2021-2015
($ thousands)
Sales
2021
$ 1,659
2020
$ 1,453
2019
$ 1,322
2018
$ 1,212
2017
2016
2015
$ 1,131
$ 1,052
$ 862
Cost of goods sold
Gross profit
Operating expenses
1,193
466
356
971
835
731
679
635
506
482
487
481
452
417
356
278
255
188
163
161
134
Net income
$ 110
$ 204
$ 232
$ 293
$ 289
$ 256
$ 222
HAROUN COMPANY
Comparative Year-End Balance Sheets
December 31, 2021-2015
($ thousands)
Assets
Cash
Accounts receivable, net
Merchandise inventory
Other current assets
Long-term investments
Plant assets, net
Total assets
Liabilities and Equity
2021
2020
2019
2018
2017
2016
2015
$ 104
746
$ 137
2,700
784
1,966
$ 143
710
1,718
$ 146
544
1,447
$ 151
479
1,300
$ 149
454
1,104
$ 154
320
801
69
62
38
69
58
59
31
0
Ө
0
3,305
3,292
2,879
$ 6,924
$ 6,241
$ 5,488
213
1,624
$ 4,043
213
1,680
213
213
1,493
1,281
$ 3,881
$ 3,472
$ 2,800
Current liabilities
Long-term liabilities
1,742
1,862
$ 1,465
1,622
$ 961
1,578
Common…
Mary carries on business as a sole proprietor that generated $100,000 in net accounting income.
Included in this amount are:
• $7,000 of amortization expense;
• $4,000 for bad debt expense;
• $112,000 cost of goods sold; and
• $12,000 meals and entertainment with clients.
Mary's maximum CCA has been calculated at $10,000 for the year. What is Mary's business income for income tax purposes?
A. $113,000
B. $109,000
C. $107,000
D. $103,000
Please explain the solution to this general accounting problem with accurate principles.
Chapter 21 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 21 - Income taxes are a unique expense of the corporate...Ch. 21 - Prob. 2TFCh. 21 - Prob. 3TFCh. 21 - Prob. 4TFCh. 21 - Prob. 5TFCh. 21 - Prob. 1MCCh. 21 - Prob. 2MCCh. 21 - Prob. 3MCCh. 21 - Prob. 4MCCh. 21 - Prob. 5MC
Ch. 21 - Prob. 1CECh. 21 - Prob. 2CECh. 21 - Teway Company declared and paid dividends in the...Ch. 21 - Prob. 4CECh. 21 - Prob. 5CECh. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - Prob. 3RQCh. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - Prob. 6RQCh. 21 - Prob. 7RQCh. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Prob. 11RQCh. 21 - CORPORATE INCOME TAX Stanton Company estimates...Ch. 21 - CLOSING INCOME SUMMARY AND DIVIDENDS TO RETAINED...Ch. 21 - Prob. 3SEACh. 21 - STOCK DIVIDENDS Kaufman Company currently has...Ch. 21 - STOCK SPLIT Goldstein Company has 100,000 shares...Ch. 21 - Prob. 6SEACh. 21 - STATEMENT OF RETAINED EARNINGS McGregor Company...Ch. 21 - Prob. 8SPACh. 21 - Prob. 9SPACh. 21 - Prob. 10SPACh. 21 - Prob. 11SPACh. 21 - Prob. 1SEBCh. 21 - CLOSING INCOME SUMMARY AND DIVIDENDS TO RETAINED...Ch. 21 - COMMON AND PREFERRED CASH DIVIDENDS Ramirez...Ch. 21 - STOCK DIVIDENDS Martinez Company currently has...Ch. 21 - Prob. 5SEBCh. 21 - Prob. 6SEBCh. 21 - Prob. 7SEBCh. 21 - CASH DIVIDENDS AND INCOME TAXES During the year...Ch. 21 - CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT...Ch. 21 - Prob. 10SPBCh. 21 - Prob. 11SPBCh. 21 - Prob. 1MYWCh. 21 - Prob. 1ECCh. 21 - MASTRY PROBLEM On January 1, 20--, Dover Companys...Ch. 21 - CHALLENGE PROBLEM This problem challenges you to...
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