INTERM.ACCT.:REPORTING...-CENGAGENOWV2
3rd Edition
ISBN: 9781337909358
Author: WAHLEN
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 16P
1.
To determine
Prepare worksheet of Company D and convert
2.
To determine
Prepare a statement of changes in D’s capital for the year ended December 31, 2019.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2019, the following information is available for this service business. At the beginning of this accounting period, the balance in the Betty Smith Capital account was $32,000. Following is a summary of activities during this accounting period: Note: You should assume that all profit (or loss) accrued during this accounting period is absorbed into the Betty Smith Capital account at the end of the period. Following are the account balances at the end of this accounting period (except Betty Smith Capital): Solve, a. Prepare an income statement for the year ending April 30, 2019. b. Prepare a balance sheet as of April 30, 2019.
Tala Isabel is the sole owner and operator of Star Service Company. As of the end of its accounting penod, December 31, 2019, Star Company has assets of P925.000 and liabilities of P285.000. During the year 2020, Tala Isabel invested an additional P50.000 and withdrew P30,000 from the business. What is the amount of net income during 2020, assuming that as of December 31, 2021, assets were P980.000 and liabilities were P255.0007
Kors Flower Shop reported total revenues of P184 000 for 2021 as well as
Total Liabilities as of December 31, 2021-P240.000//2021 Net loss-P38.000//
2021 Total cash payments-P104.000
The company's total expenses must have been
Slime Corp. maintains its accounting records on the cash basis but restates it financial statements to accrual basis. Iniwan had P600,000 in cash basis pre-tax income for 2020. The following information pertains to Iniwan’s operations for the year ended December 31, 2019 and 2020: Accounts receivable: 2020- P400,000; 2019- P200,000 Accounts payable: 2020- P150,000; 2019- P300,000 Under accrual method, what is the income before taxes should Slime report in its December 31, 2020?
Chapter 3 Solutions
INTERM.ACCT.:REPORTING...-CENGAGENOWV2
Ch. 3 - What is the primary purpose of an accounting...Ch. 3 - What is the relationship between the accounting...Ch. 3 - Show the expanded accounting equation using the 10...Ch. 3 - Explain and distinguish between a transaction; an...Ch. 3 - Explain how the accounting equation organizes...Ch. 3 - What is the difference between a permanent and a...Ch. 3 - Prob. 7GICh. 3 - Why is it advantageous to a company to initially...Ch. 3 - What is a perpetual inventory accounting system?...Ch. 3 - Give examples of transactions that: a. Increase an...
Ch. 3 - Give examples of transactions that: a. Increase...Ch. 3 - Prob. 12GICh. 3 - Prob. 13GICh. 3 - Prob. 14GICh. 3 - Prob. 15GICh. 3 - Explain and provide examples of deferrals,...Ch. 3 - Prob. 17GICh. 3 - Prob. 18GICh. 3 - Prob. 19GICh. 3 - Prob. 20GICh. 3 - Prob. 21GICh. 3 - What are the major financial statements of a...Ch. 3 - Prob. 23GICh. 3 - Prob. 24GICh. 3 - Prob. 25GICh. 3 - Prob. 26GICh. 3 - Prob. 27GICh. 3 - Prob. 28GICh. 3 - Prob. 29GICh. 3 - What is cash-basis accounting? What must a company...Ch. 3 - On May 1, Johnson Corporation purchased inventory...Ch. 3 - On January 1, Tolson Company purchased a building...Ch. 3 - On July 1, Friler Company purchased a 1-year...Ch. 3 - Prob. 4RECh. 3 - Garcia Company rents out a portion of its building...Ch. 3 - Prob. 6RECh. 3 - Goldfinger Corporation had account balances at the...Ch. 3 - Prob. 8RECh. 3 - For the current year, Vidalia Company reported...Ch. 3 - Use the information in RE3-6, (a) assuming Ringo...Ch. 3 - (Appendix 3.1) Vickelly Company uses cash-basis...Ch. 3 - Financial Statement Interrelationship Draw a...Ch. 3 - Journal Entries Mead Company uses a perpetual...Ch. 3 - Journal Entries The following are selected...Ch. 3 - Adjusting Entries Your examination of Sullivan...Ch. 3 - Adjusting Entries The following are several...Ch. 3 - Adjusting Entries The following partial list of...Ch. 3 - Basic Income Statement The following are selected...Ch. 3 - Periodic Inventory System Raynolde Company uses a...Ch. 3 - Closing Entries Lloyd Bookstore shows the...Ch. 3 - Financial Statements Turtle Company has prepared...Ch. 3 - Worksheet for Service Company Whitaker Consulting...Ch. 3 - Worksheet, Including Inventory Surian Motors...Ch. 3 - Reversing Entries On December 31, 2019, Kellams...Ch. 3 - Special Journals The following are several...Ch. 3 - (Appendix 3.1) Cash-Basis Accounting Puntarelli...Ch. 3 - Adjusting Entries The following information is...Ch. 3 - Prob. 2PCh. 3 - Adjusting Entries Sarah Companys trial balance on...Ch. 3 - Prob. 4PCh. 3 - Errors in Financial Statements At the end of the...Ch. 3 - Journal Entries, Posting, and Trial Balance Luke...Ch. 3 - Effects of Errors: During the current accounting...Ch. 3 - Financial Statements Mackenzie Inc. uses a...Ch. 3 - Prob. 9PCh. 3 - Worksheet Victoria Company has the following...Ch. 3 - Worksheet Devlin Company has prepared the...Ch. 3 - Comprehensive On November 30, 2019. Davis Company...Ch. 3 - Reversing Entries Thomas Company entered into two...Ch. 3 - Reversing Entries On December 31, 2019, Mason...Ch. 3 - Adjusting Entries At the end of 2019, Richards...Ch. 3 - Prob. 16PCh. 3 - Comprehensive (Appendix 3.1) Dawson OConnor is the...
Knowledge Booster
Similar questions
- On June 15, 2019, Sage Corporation purchased a building for $1,548,000 in cash. The building was sold to Sage by Joe Qwinn, who owned a majority of shares in the corporation. Qwinn had purchased the building ten years previously for $726,800. (a1)Assume that Sage follows ASPE. Prepare the journal entry to record the purchase of the building. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit June 15, 2017arrow_forwardBridgeport Corporation commenced operations in early 2025. The corporation incurred $44,500 of costs such as fees to underwriters, legal fees, state fees, and promotional expenditures during its formation. Prepare journal entries to record the $44,500 expenditure and 2025 amortization, if any. (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. List all debit entries before credit entries.). Account Titles and Explanation (To record costs incurred) (To record amortization expense) Debit Creditarrow_forwardIniwan Corp. maintains its accounting records on the cash basis but restates it financial statements to accrual basis. Iniwan had P600,000 in cash basis pre-tax income for 2020. The following information pertains to Iniwan's operations for the year ended December 31, 2019 and 2020: Accounts receivable: 2020- P400,000; 2019- P200,000 Accounts payable: 2020- P150,000; 2019- P300,000 Under accrual method, what is the income before taxes should Iniwan report in its December 31, 2020? *arrow_forward
- For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,200,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. 1. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain fromJanuary 1, 2021, through November was $160,000 and the loss on sale of the chain’s assets was $300,000.2. In 2021, Olivo sold one of its six factories for $1,200,000. At the time of the sale, the factory had a book value of $1,100,000. The factory was not considered a component of the entity.3. In 2019, Olivo’s accountant omitted the annual adjustment for patent amortization expense of $120,000. The error was not discovered until December 2021.Required:Prepare Olivo’s income statement, beginning with…arrow_forwardThe following selected circumstances relate to pending lawsuits for Erismus, Incorporated Erismus's fiscal year ends on December 31. Financial statements are issued in March 2025. Erismus prepares its financial statements according to IFRS. Required: Indicate the amount Erismus would record as an asset, a liability or if no accrual would be necessary in the following circumstances. 12345 1. 2. 3. 4. 5. 1. Erismus is defending against a lawsuit. Erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court. If it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the…arrow_forwardIn 2021, IRS Company reported pretax financial income of $260,000. IRS Company paid rent in advance of $30,000 to Housing Corporation. For book purposes, there is a deferral of $30,000 for the rent paid in advance. For book purposes, the rent expense will be recognized in 2022. The company's tax rate is 35%. 2021 is the company's first year of operations. 1. Compute IRS Company’s taxable income for 2021 2. Prepare IRS Company's journal entry for 2021.arrow_forward
- Sandhill Corp. follows IFRS and began operations in 2023 and reported accounting income of $273,000 for the year. Sandhill's CCA exceeded its book depreciation by $39,200. Sandhill's tax rate for 2023 and years thereafter is 30%. Assume that the $39,200 difference is the only difference between Sandhill's accounting income and taxable income. Prepare the journal entries to record the current tax expense, deferred tax expense, income tax payable, and the deferred tax liability. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date December 31, 2023 December 31, 2023 Account Titles and Explanation (To record current tax expense) (To record deferred tax expense) II Debit Creditarrow_forwardHardevarrow_forwardIndustries Inc. began carrying on business in 2019 and has a December 31 taxation year end. While it was fairly successful in its first year of operation, excessive production of an unmarketable product resulted in a large business loss for 2020. Profits have returned in 2021 and 2022. Find the minimum net income and taxable income for 2019. Indicate the amount and type of any losses that are available to be applied to other taxation years. What is the minimum net income? What is the taxable income? What is the net capital loss?arrow_forward
- Ambee Ltd. commenced operations in 2019, and has two separate lines of business. They are a mail order operation selling organic food products, and an operation that provides accounting services to small business. The income (loss) of the two operations for the years 2019 and 2020 are as follows: Mail Order Accounting Year Operation Operation 2019 ($146,000) $ 43,000 2020 56,000 85,000 The Company has no deductions from Net Income For Tax Purposes other than possible loss carry forwards from 2019. Required: Determine the minimum Taxable Income for 2019 and 2020, and any loss carry forward available at the end of each year assuming that there was an acquisition of control on January 1, 2020.arrow_forwardScarlet Company had pretax accounting income of P2,400,000 during 2020. Scarlet Company’s temporary difference for 2020 relates to a sale made in 2019 and recognized for accounting purposes at that time. However, Scarlet Company uses the installment method of revenue recognition for tax purposes. During 2020, the company collected a receivable from the 2019 sale which resulted in P600,000 of income under the installment method. 1. What is Scarlet Company’s taxable income for 2020?arrow_forwardAssume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of $800,000. In addition, Munoz reported the following differences between its pretax financial income and taxable income:• Interest income of $80,000 was received during 2019 from an investment in municipal bonds. This income is exempt for tax purposes.• Rent income of $40,000 was collected in 2018 and included for tax purposes during that year. For financial statement purposes, it will be reported as earned equally in 2019 and 2020.• An asset with a 5-year life was purchased during 2019; straight-line depreciation for book purposes was $40,000. MACRS depreciation expense for 2019 was $100,000.• Warranty expense of $20,000 was recognized on the 2019 income statement, while $5,000 was recognized for tax purposes. (Assume a 1-year warranty contract.)The balance of the Deferred Tax Asset account (debit) at January 1, 2019, was $16,000 as a result of the rent income temporary difference. The tax…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT