Answer | |||
Computation of Taxable Income and Tax Payable - Alsup Consulting | |||
Particulars | 2021 | 2022 | 2023 |
Pre tax accounting income | $ 268,000 | $ 236,000 | $ 208,000 |
Add: Service revenue collection | $ 786,000 | $ 710,000 | $ 728,000 |
Less: service revenue as per books | $ 758,000 | $ 718,000 | $ 724,000 |
Taxable income | $ 296,000 | $ 228,000 | $ 212,000 |
Income Tax (25%) | $ 74,000 | $ 57,000 | $ 53,000 |
Please like
Computation of Temporary differences - Alsup Consulting | ||||
Particulars | 2020 | 2021 | 2022 | 2023 |
Beginning service revenue receivables | $ - | $ 40,000 | $ 20,000 | $ 50,000 |
Service Revenue | $ 668,000 | $ 758,000 | $ 718,000 | $ 724,000 |
Collection | $ 628,000 | $ 786,000 | $ 710,000 | $ 728,000 |
ending service revenue receivables | $ 40,000 | $ 12,000 | $ 28,000 | $ 46,000 |
Taxable (Deductible Temporary differences) | $ 40,000 | -$ 28,000 | $ 16,000 | $ 18,000 |
Deferred tax liability (reversal) for the year | $ 10,000 | -$ 7,000 | $ 4,000 | $ 4,500 |
Journal Entries - Alsup Consulting | |||
Date | Particulars | Debit (In '000) | Credit (In '000) |
31-Dec-21 | Income tax expense Dr | $ 10,000 | |
Deferred tax liability Dr | $ 7,000 | ||
To Income tax payable | $ 17,000 | ||
(To record income tax and deferred taxes) | |||
31-Dec-22 | Income tax expense Dr | $ 61,000 | |
To Income tax payable | $ 57,000 | ||
To Deferred tax liability | $ 4,000 | ||
(To record income tax and deferred taxes) | |||
31-Dec-23 | Income tax expense Dr | $ 48,500 | |
Deferred tax liability Dr | $ 4,500 | ||
To Income tax payable | $ 53,000 | ||
(To record income tax and deferred taxes) |
Check my work Alsup Consulting sometimes performs services for which it receives payment at the conclusion...
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting Income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $ 720, eee 810, eee 770,000 776,000 Collections $ 680, eee 838,00 762,00 780, Pretax Accounting...
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: Service Revenue $720,000 810,000 770.000 776,000 Collections S680.000 838,000 762.000 780,000 Pretax counting Income $246.000 320.000 288,000 260.000 2022 2023 There are...
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $724,000 814,000 774,000 780,000 Collections $684,000 842,000 766,000 784,000 Pretax Accounting Income $250,000 324,000 292,000 264,000...
RECORD INCOME TAXES FOR 2022 AND AN ENTRY FOR 2023 Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 Service Revenue $688,000 778,000 738,000 744,000 Collections $648,000 806,000...
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020–2023 are as follows: Service Revenue Collections Pretax Accounting Income 2020 $ 736,000 $ 696,000 $ 262,000 2021 826,000 854,000 336,000 2022 786,000 778,000 304,000 2023...
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $736,000 826,000 786,000 792,000 Collections $696,000 854.000 778,000 796,000 Pretax Accounting Income $262,000 336,000 304,000 276,000...
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $716,000 806,000 766,000 772,000 Collections $676,000 834,000 758,000 776,000 Pretax Accounting Income $242,000 316,000 284,000 256,000...
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020–2023 are as follows: Service Revenue Collections Pretax Accounting Income 2020 $ 716,000 $ 676,000 $ 242,000 2021 806,000 834,000 316,000 2022 766,000 758,000 284,000 2023...
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $664,000 754,000 714,000 720,000 Collections $624,000 782,000 706,000 724,000 Pretax Accounting Income $190,000 264,000 232,000 204,000...
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020–2023 are as follows: Service Revenue Collections Pretax Accounting Income 2020 $ 664,000 $ 624,000 $ 190,000 2021 754,000 782,000 264,000 2022 714,000 706,000 232,000 2023...