Chapter 3, Problem 23E

Splish Inc. incurred a net operating loss of $515,000 in 2025. The tax rate for all years is 20%. Prepare the journal entries to record the benefits of the loss carryforward. Splish expects to return to profitability in 2026. (List debit entry before credit entry. 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 o for the amounts) Account Titles and Explanation Debit Credit

17. Jollibee has just ended the calendar year making a sale in the amount of P200,000 of merchandise purchased during the year at a total cost of P150,500.  Although the firm paid in full for the merchandise during the year, it has yet to collect  at year end from the customer.  One possible problem this firm may face isA.    low profitability.B.    insolvency.C.    inability to receive credit.D.    high leverage.

Jacob, Inc., changed from the average cost to the FIFO cost flow assumption in 2019. The increase in the prior year's income before taxes is €1,100,000. The tax rate is 35%. Jacob's 2019 journal entry to record the change in accounting policy will include. a. a debit to Retained Earnings for €1,100,000. b. a credit to Retained Earnings for €1,100,000. a debit to Inventory for €715,000. C. a credit to Deferred Tax Liability for €385,000

Bridgeport Inc. incurred a net operating loss of $477,000 in 2020. The tax rate for all years is 20%. Prepare the journal entries to record the benefits of the loss carryforward. Bridgeport expects to return to profitability in 2021. (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 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

2 Nunez Company, a retail hardware store, began business in August and elected a calendar year for tax purposes. From August through December, Nunez paid $319,000 for inventory to stock the store. According to a physical inventory count on December 31, Nunez had $64,600 of inventory on hand. Required: a. Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the cash method as its overall method of accounting. b. Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the accrual method as its overall method of accounting. Complete this question by entering your answers in the tabs below. Required A Required B Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the cash method as its overall method of accounting. Cost of goods sold

The owner of Time Traders requested you to calculate the net profit for the year ended30 June 2020. Mr Minute, the owner, has not been very diligent in keeping records. He has presentedyou with the following information: His assets and liabilities at the beginning of the financial year were as follows:Equipment at carrying value R75 000Vehicles at carrying value R 125 000Trading inventory R180 000Cash in bank R32 000Debtors R31 500Creditors R8 500Loan: Second Bank (14%) R50 000 The bank statements show a credit balance of R48 790 as at 30 June 2020. All the cash received has been deposited. A stock‐take performed on 30 June 2020, showed inventory on hand with a cost price ofR230 000. The debtors balance at year‐end is R38 000 and the creditors balance is R16 225. Equipment was purchased during the year at a cost price of R5 000.  Depreciation on vehicles for the year amounted to R20 000 and for the equipment R15 000. The owner took R23 000 in cash for personal use during the…

The owner of Time Traders requested you to calculate the net profit for the year ended30 June 2020. Mr Minute, the owner, has not been very diligent in keeping records. He has presentedyou with the following information:His assets and liabilities at the beginning of the financial year were as follows:Equipment at carrying value R75 000Vehicles at carrying value R 125 000Trading inventory R180 000Cash in bank R32 000Debtors R31 500Creditors R8 500Loan: Second Bank (14%) R50 000The bank statements show a credit balance of R48 790 as at 30 June 2020.All the cash received has been deposited.A stock‐take performed on 30 June 2020, showed inventory on hand with a cost price ofR230 000.The debtors balance at year‐end is R38 000 and the creditors balance is R16 225.Equipment was purchased during the year at a cost price of R5 000.Depreciation on vehicles for the year amounted to R20 000 and for the equipment R15 000.The owner took R23 000 in cash for personal use during the year ended 30 June…

The company completed the following transactions during 2020. Jan 10 sold inventory to Natty Paul, $11,000, on account May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: Prepare journal entries for each transaction (No narrations required) Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit sales are estimated to be uncollectible.…

1. What is the adjusted net income for 2021?