During 2017, the first year of operations, Silver, Inc., pays salaries of $175,000. At the end...
During 2017, the first year of operations, Silver, Inc., pays salaries of $175,000. At the end of the year, employees have earned salaries of $20,000, which are not paid by Silver until early in 2018. What is the amount of the deduction for salary expense?
Homework Answers
If Silver uses the accrual method, $195,000 in 2017 and $0 in 2018. In accrual accounting expenses are reported when they're accrued.
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During 2017, the first year of operations,
Silver, Inc., pays salaries of $175,000. At the end...
During 2018, the first year of operations, Silver, Inc., pays salaries of $175,000. At the end...
During 2018, the first year of operations, Silver, Inc., pays salaries of $175,000. At the end of the year, employees have earned salaries of $20,000, which are not paid by Silver until early in 2019. What is the amount of the deduction for salary expense? a. If Silver uses the cash method, $0 in 2018 and $195,000 in 2019. Ob. If Silver uses the cash method, $175,000 in 2018 and $0 in 2019. c. If Silver uses the accrual method,...
Question 1 part A and B A. Jenson Company, an accrual basis taxpayer, paid salaries of...
Question 1 part A and B A. Jenson Company, an accrual basis taxpayer, paid salaries of $125,000 in 2017 and had a salary payable of $20,000 at the end of 2017. The salary of $20,000 owed to employees at the end of 2017 was paid in 2018. What should be the amount of the deduction for salary expense in 2017 and 2018? Group of answer choices $145,000 in 2017 and $0 in 2018 $125,000 in 2017 and $0 in 2018...
Salaries are considered an ordinarg and necessart expense of a trade or business if they meet...
Salaries are considered an ordinarg and necessart expense of a
trade or business if they meet what ogbwr
Exam #1 - Problems Question #1 - 10 points Alfred's Enterprises, an unincorporated entity, pays employee salaries of $100,000 during the year. At the end of the year, $12,000 of additional salaries have been earned but not paid until th a. Determine the amount of the deduction for salaries if Alfred is a cash method taxpayer. b. Determine the amount of the...
Hopkins Co. at the end of 2017, its first year of operations, prepared a reconciliation between...
Hopkins Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $3,000,000 Estimated litigation expense 4,000,000 Extra depreciation for taxes (6,000,000) Taxable income $3,000,000 $1,000,000 The estimated litigation expense of $4,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2,000,000 in each of the next three years. The income...
Starlight Associates, Inc. recorded salary expense of $100,000 in 2017. However, additional salaries of $5,000 had...
Starlight Associates, Inc. recorded salary expense of $100,000 in 2017. However, additional salaries of $5,000 had been earned, but not paid or recorded at December 31, 2017. After the adjustments are recorded and posted at December 31, 2017, what are the balances in the Salaries Expense and Salaries Payable accounts? Salaries Expense Salaries Payable a. $105,000 $0 b. $105,000 $5,000 c. $100,000 $5,000 d. $100,000 $0
Knowledge Check 01 A company is in its first month of operations. The company pays total...
Knowledge Check 01 A company is in its first month of operations. The company pays total salaries to its employees of $600 per day. For the first four weeks of January (28 days), the company paid its employees $16,800 cash. For the final three days in January, employees earn $1,800 in additional salaries that will not be paid until February 4. What adjusting entry would be made at the end of January? Post the adjusting entry for the scenario provided....
Following are the transactions and adjustments that occurred during the first year of operations at Kissick...
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. Issued 194,000 shares of $5-par-value common stock for $970,000 in cash. Borrowed $540,000 from Oglesby National Bank and signed a 11% note due in three years. Incurred and paid $390,000 in salaries for the year. Purchased $700,000 of merchandise inventory on account during the year. Sold inventory costing $590,000 for a total of $900,000, all on credit. Paid rent of $220,000 on the...
Following are the transactions and adjustments that occurred during the first year of operations at Kissick...
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. Issued 200,000 shares of $5-par-value common stock for $1,000,000 in cash. Borrowed $550,000 from Oglesby National Bank and signed a 12% note due in three years. Incurred and paid $410,000 in salaries for the year. Purchased $660,000 of merchandise inventory on account during the year. Sold inventory costing $590,000 for a total of $910,000, all on credit. Paid rent of $220,000 on the...
Following are the transactions and adjustments that occurred during the first year of operations at Kissick...
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. Issued 197,000 shares of $4-par-value common stock for $788,000 in cash. Borrowed $540,000 from Oglesby National Bank and signed a 11% note due in three years. Incurred and paid $400,000 in salaries for the year. Purchased $730,000 of merchandise inventory on account during the year. Sold inventory costing $570,000 for a total of $910,000, all on credit. Paid rent of $220,000 on the...
Below are the transactions and adjustments that occurred during the first year of operations at Kissick...
Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co Issued 197,000 shares of $5-par-value common stock for $985,000 in cash. Borrowed $520,000 from Oglesby National Bank and signed a 11% note due in three years. Incurred and paid $390,000 in salaries for the year. Purchased $690,000 of merchandise inventory on account during the year. Sold inventory costing $590,000 for a total of $920,000, all on credit. Paid rent of $220,000 on the...
During 2018, the first year of operations, Silver, Inc., pays salaries of $175,000. At the end of the year, employees have earned salaries of $20,000, which are not paid by Silver until early in 2019. What is the amount of the deduction for salary expense? a. If Silver uses the cash method, $0 in 2018 and $195,000 in 2019. Ob. If Silver uses the cash method, $175,000 in 2018 and $0 in 2019. c. If Silver uses the accrual method,...
Salaries are considered an ordinarg and necessart expense of a
trade or business if they meet what ogbwr
Exam #1 - Problems Question #1 - 10 points Alfred's Enterprises, an unincorporated entity, pays employee salaries of $100,000 during the year. At the end of the year, $12,000 of additional salaries have been earned but not paid until th a. Determine the amount of the deduction for salaries if Alfred is a cash method taxpayer. b. Determine the amount of the...
Hopkins Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $3,000,000 Estimated litigation expense 4,000,000 Extra depreciation for taxes (6,000,000) Taxable income $3,000,000 $1,000,000 The estimated litigation expense of $4,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2,000,000 in each of the next three years. The income...
Knowledge Check 01 A company is in its first month of operations. The company pays total salaries to its employees of $600 per day. For the first four weeks of January (28 days), the company paid its employees $16,800 cash. For the final three days in January, employees earn $1,800 in additional salaries that will not be paid until February 4. What adjusting entry would be made at the end of January? Post the adjusting entry for the scenario provided....
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