Information from the Income Statement columns of Lincoln Corporation’s worksheet on December 31, 2019, is shown below.
1. What is the amount of net income before income tax?
2. What is the amount of income tax on the net income? Use the tax rates given above.
3. What adjustment is recorded for Income Tax Expense? The corporation paid $22,000 through quarterly deposits.
4. What is the amount of net income after income tax?
Homework Answers
Answer:
1. What is the amount of net income before income tax?
$111,600
Sales
$965,000
Less : Expenses
Purchases
$654,000
Selling
Exp.
$148,500
General
Admin.
$98,500
Amortization
$900 - $901,900
Merchandise Inventory Adjustment
(235,500 -
187,000) +$48,500
Profit before
tax
$111,600
2. What is the amount of income tax on the net income.
$43,524
$111,600 x 39% = $43,524
3. What adjustment is recorded for Income Tax Expense? The
corporation paid
$22,000 through quarterly deposits.
Assuming Corporation debited Income Tax Payable and
Credited Cash for quarterly deposit, the required adjustment entry
would be :
Income Tax Expense $43,524
Deferred Tax Assets[($22,000 x
4)-$43,524] $44,476
Income Tax Payable $88,000
4. What is the amount of net income after income tax?
$68,076
$111,600 - $43,524 = $68,076
Add Answer to:
Information from the Income Statement columns of Lincoln
Corporation’s worksheet on December 31, 2019, is shown...
Presented below are selected ledger accounts of Sheridan Corporation as of December 31, 2020. Cash $46,000...
Presented below are selected ledger accounts of Sheridan
Corporation as of December 31, 2020.
Cash
$46,000
Administrative expenses
92,000
Selling expenses
73,600
Net sales
496,800
Cost of goods sold
193,200
Cash dividends declared (2020)
18,400
Cash dividends paid (2020)
13,800
Discontinued operations (loss before income taxes)
36,800
Depreciation expense, not recorded in 2019
27,600
Retained earnings, December 31, 2019
82,800
Effective tax rate 20%
Prepare a partial income statement beginning with income from
continuing operations before income tax, and including...
part a: Prepare the closing entries at December 31. (Credit account tittles are automatically indented when...
part a: Prepare the closing
entries at December 31. (Credit account tittles 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
Dec. 31
(To close revenue account.)
31
(To close expense accounts.)
31
(To close net income.)
31
(To close dividends.)
9,800 Exercise 4-13 (Part Level Submission) Selected accounts from Betts Ltd.'s...
B) The following selected accounts from Okanagan Corporation’s general ledger are presented below for the year...
B) The following selected accounts from Okanagan
Corporation’s general ledger are presented below for the year ended
December 31, 2018:
Accounts receivable
$249,000
Accumulated depreciation—equipment
745,000
Advertising expense
50,000
Common shares
254,000
Cost of goods sold
1,085,000
Depreciation expense
131,000
Dividends declared
154,000
Equipment
1,461,000
Freight out
24,000
Income tax expense
73,000
Insurance expense
23,000
Interest expense
60,000
Interest revenue
31,000
Inventory
103,000
Prepaid expenses
31,000
Rent revenue
24,000
Retained earnings
506,000
Salaries expense
772,000
Sales
2,646,000
Sales discounts
22,000...
Desoto Company must make three adjusting entries on December 31, 2019. Supplies used, $10,400 (supplies totaling...
Desoto Company must make three adjusting entries on December 31,
2019.
Supplies used, $10,400 (supplies totaling $16,800 were
purchased on December 1, 2019, and debited to the Supplies
account).
Expired insurance, $7,600; on December 1, 2019, the firm paid
$45,600 for six months’ insurance coverage in advance and debited
Prepaid Insurance for this amount.
Depreciation expense for equipment, $5,200.
Required:
Prepare the journal entries for these adjustments and post the
entries to the general ledger accounts
We were unable to...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018:...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018: 2,758,8ee 88,000 Loss on sale of investments Cost of goods sold Loss from write-down of inventory due to obsolescence Selling expenses General and administrative expenses 26,500 1,270,ee6e 280 , еее 380,ee0 19e,0e0 87,800 300,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%. Required: 1. Prepare a single-step income statement for...
The following selected accounts from Okanagan Corporation’s general ledger are presented below for the year ended...
The following selected accounts from Okanagan Corporation’s
general ledger are presented below for the year ended December 31,
2018:
Accounts receivable
$249,000
Accumulated depreciation—equipment
745,000
Advertising expense
50,000
Common shares
254,000
Cost of goods sold
1,085,000
Depreciation expense
131,000
Dividends declared
154,000
Equipment
1,461,000
Freight out
24,000
Income tax expense
73,000
Insurance expense
23,000
Interest expense
60,000
Interest revenue
31,000
Inventory
103,000
Prepaid expenses
31,000
Rent revenue
24,000
Retained earnings
506,000
Salaries expense
772,000
Sales
2,646,000
Sales discounts
22,000
Sales...
The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed...
The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below. Incone Debit Credit Cash Accounts Receivable Supplies Prepaid Advertising Equipment Accumulated Depreciation Equipment Accounts Payable Selena Cantu, Capital Selena Cantu, Drawing Fees Income Supplies Expense Advertising Expense Depreciation Expense-Equipment Salaries Expense Utilities Expense Totals Net Income CANTU CORPORATION Worksheet Month Ended December 31, 2019 Adjusted Trial Trial Balance Adjustments Balance Debit Credit Debit Credit Debit Credit 77.400...
The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed...
The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below. Income Statement Debit Credit CANTU CORPORATION Worksheet Month Ended December 31, 2019 Adjusted Trial Trial Balance Adjustments Balance Debit Credit Debit Credit Debit Credit 76,300 76,300 11,199 11, 100 8,300 5,109 3,200 9,000 1,500 7,500 107,500 107,500 2,150 11,180 11,100 107,180 107,100 6,300 6,300 117,100 117,109 5,100 5,180 1,500 1,500 2,150 2,150 15,900 15,900 980 900 235,300...
Business Course PRUITT COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $770,000...
Business Course PRUITT COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $770,000 Cost of Goods Sold $450,000 Wages and Other Operating Expenses 195,000 Depreciation Expense 22,000 Goodwill Amortization Expense 7,000 Interest Expense 5,000 Income Tax Expense 36,000 Loss on Bond Retirement 5,000 720,000 Net Income $50,000 Support We were unable to transcribe this imageBusiness Course $480,000 $489,000 Total Assets Liabilities and Stockholders' Equity Accounts Payable Interest Payable Income Tax Payable Bonds Payable Common Stock Retained Earnings...
Condensed balance sheet and income statement data for Pina Corporation are presented here. PINA CORPORATION Balance...
Condensed balance sheet and income statement data for Pina Corporation are presented here. PINA CORPORATION Balance Sheets December 31 2017 2016 2015 Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) $ 32,000 22,000 $20,000 47,00050,000 97,000 102,00071,000 77,00052,000 358,000 $743,000 $618,000 $551,000 $ 87,000 82,000 72,000 152,000 92,00057,000 327,000 317,000307,000 115,000 $743,000 $618,000$551,000 52,000 62,000 500,000 370,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings 177,000 127,000 We were unable to transcribe this imageWe...
Presented below are selected ledger accounts of Sheridan
Corporation as of December 31, 2020.
Cash
$46,000
Administrative expenses
92,000
Selling expenses
73,600
Net sales
496,800
Cost of goods sold
193,200
Cash dividends declared (2020)
18,400
Cash dividends paid (2020)
13,800
Discontinued operations (loss before income taxes)
36,800
Depreciation expense, not recorded in 2019
27,600
Retained earnings, December 31, 2019
82,800
Effective tax rate 20%
Prepare a partial income statement beginning with income from
continuing operations before income tax, and including...
part a: Prepare the closing
entries at December 31. (Credit account tittles 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
Dec. 31
(To close revenue account.)
31
(To close expense accounts.)
31
(To close net income.)
31
(To close dividends.)
9,800 Exercise 4-13 (Part Level Submission) Selected accounts from Betts Ltd.'s...
B) The following selected accounts from Okanagan
Corporation’s general ledger are presented below for the year ended
December 31, 2018:
Accounts receivable
$249,000
Accumulated depreciation—equipment
745,000
Advertising expense
50,000
Common shares
254,000
Cost of goods sold
1,085,000
Depreciation expense
131,000
Dividends declared
154,000
Equipment
1,461,000
Freight out
24,000
Income tax expense
73,000
Insurance expense
23,000
Interest expense
60,000
Interest revenue
31,000
Inventory
103,000
Prepaid expenses
31,000
Rent revenue
24,000
Retained earnings
506,000
Salaries expense
772,000
Sales
2,646,000
Sales discounts
22,000...
Desoto Company must make three adjusting entries on December 31,
2019.
Supplies used, $10,400 (supplies totaling $16,800 were
purchased on December 1, 2019, and debited to the Supplies
account).
Expired insurance, $7,600; on December 1, 2019, the firm paid
$45,600 for six months’ insurance coverage in advance and debited
Prepaid Insurance for this amount.
Depreciation expense for equipment, $5,200.
Required:
Prepare the journal entries for these adjustments and post the
entries to the general ledger accounts
We were unable to...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018: 2,758,8ee 88,000 Loss on sale of investments Cost of goods sold Loss from write-down of inventory due to obsolescence Selling expenses General and administrative expenses 26,500 1,270,ee6e 280 , еее 380,ee0 19e,0e0 87,800 300,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%. Required: 1. Prepare a single-step income statement for...
The following selected accounts from Okanagan Corporation’s
general ledger are presented below for the year ended December 31,
2018:
Accounts receivable
$249,000
Accumulated depreciation—equipment
745,000
Advertising expense
50,000
Common shares
254,000
Cost of goods sold
1,085,000
Depreciation expense
131,000
Dividends declared
154,000
Equipment
1,461,000
Freight out
24,000
Income tax expense
73,000
Insurance expense
23,000
Interest expense
60,000
Interest revenue
31,000
Inventory
103,000
Prepaid expenses
31,000
Rent revenue
24,000
Retained earnings
506,000
Salaries expense
772,000
Sales
2,646,000
Sales discounts
22,000
Sales...
The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below. Incone Debit Credit Cash Accounts Receivable Supplies Prepaid Advertising Equipment Accumulated Depreciation Equipment Accounts Payable Selena Cantu, Capital Selena Cantu, Drawing Fees Income Supplies Expense Advertising Expense Depreciation Expense-Equipment Salaries Expense Utilities Expense Totals Net Income CANTU CORPORATION Worksheet Month Ended December 31, 2019 Adjusted Trial Trial Balance Adjustments Balance Debit Credit Debit Credit Debit Credit 77.400...
The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below. Income Statement Debit Credit CANTU CORPORATION Worksheet Month Ended December 31, 2019 Adjusted Trial Trial Balance Adjustments Balance Debit Credit Debit Credit Debit Credit 76,300 76,300 11,199 11, 100 8,300 5,109 3,200 9,000 1,500 7,500 107,500 107,500 2,150 11,180 11,100 107,180 107,100 6,300 6,300 117,100 117,109 5,100 5,180 1,500 1,500 2,150 2,150 15,900 15,900 980 900 235,300...
Business Course PRUITT COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $770,000 Cost of Goods Sold $450,000 Wages and Other Operating Expenses 195,000 Depreciation Expense 22,000 Goodwill Amortization Expense 7,000 Interest Expense 5,000 Income Tax Expense 36,000 Loss on Bond Retirement 5,000 720,000 Net Income $50,000 Support We were unable to transcribe this imageBusiness Course $480,000 $489,000 Total Assets Liabilities and Stockholders' Equity Accounts Payable Interest Payable Income Tax Payable Bonds Payable Common Stock Retained Earnings...
Condensed balance sheet and income statement data for Pina Corporation are presented here. PINA CORPORATION Balance Sheets December 31 2017 2016 2015 Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) $ 32,000 22,000 $20,000 47,00050,000 97,000 102,00071,000 77,00052,000 358,000 $743,000 $618,000 $551,000 $ 87,000 82,000 72,000 152,000 92,00057,000 327,000 317,000307,000 115,000 $743,000 $618,000$551,000 52,000 62,000 500,000 370,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings 177,000 127,000 We were unable to transcribe this imageWe...
Most questions answered within 3 hours.
-
(63
#14)
which of the following statments best describes how chamging
the concentration of the substances...
asked 2 hours ago -
In the following reaction, which element is undergoing
oxidation: Na2SO3 + N2O --> N2 + Na2SO4...
asked 3 hours ago -
Which of the following pairs of ions have the same electron
configuration?
I: Br− and Se2−...
asked 5 hours ago -
The Foremost Composite Materials Company is planning a two-day
sales conference for October 19-20. The conference...
asked 6 hours ago -
3) Illustrate the observed pattern of relatedness of organisms
versus adaptations to specific conditions. This means...
asked 6 hours ago -
In winter a lake has a 0.35 m thick ice layer over 1.10 m of
water....
asked 7 hours ago -
Assuming the following has been encrypted with a Vigenere cipher
below, use the method(s) and assumptions...
asked 7 hours ago -
How would I use switch statements to write a program that will
take an input of...
asked 7 hours ago -
Imagine a reaction in which methane gas combusts at a constant
pressure of 1 atm and...
asked 7 hours ago -
Two parallel wires (each 12 m in length) are separated by a
distance of 0.065 m...
asked 7 hours ago -
Suppose there were three masses at the corner of uniform
equilateral triangle. The masses are m1...
asked 7 hours ago -
Situation: A building that is 618 m above the ground floor. How
many times would a...
asked 7 hours ago