Question

Harvey Co. pays income tax at an average rate of 30 percent. This year its revenue is $118,000 and its expenses are $79,000.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Income tax expense:

= ($118,000 - $79,000) X 30%

= $11,700

$11,700 will be recorded as expense which decrease the stockholders equity.

Decreases stockholders equity by $11,700

1st option

Add a comment
Know the answer?
Add Answer to:
Harvey Co. pays income tax at an average rate of 30 percent. This year its revenue...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Q.3 How does the year-end adjusting entry to recognize uncollectible accounts expense affect the elements of...

    Q.3 How does the year-end adjusting entry to recognize uncollectible accounts expense affect the elements of the financial statements? Multiple Choice A. Increase total assets and decrease stockholders’ equity. B. Increase total liabilities and increase stockholders’ equity. C. Decrease total assets and decrease stockholders’ equity. D. Decrease total liabilities and increase stockholders’ equity.

  • Which of the following would not be a result of the adjusting entry to record accrued...

    Which of the following would not be a result of the adjusting entry to record accrued interest on a note payable? Multiple Choice A decrease in net income. A decrease in stockholders' equity. An increase in liabilities A decrease in current assets.

  • Multiple Cholce Question 73 Carla Vista Co. has a tax rate of 30 percent and income...

    Multiple Cholce Question 73 Carla Vista Co. has a tax rate of 30 percent and income before non-operating Items of $1784800. It also has the following items (gross amounts). Unusual gain $ 120000 Loss from discontinued operations 915500 Dividend revenue 30600 Income increasing prior period adjustment 372000 What is the amount of income tax expense Carla Vista would report on its income.statement? $546120 $417570 $580620 $305970

  • Multiple Tax Rates For the year ended December 31, 2016, Nelson Co.’s income statement showed income...

    Multiple Tax Rates For the year ended December 31, 2016, Nelson Co.’s income statement showed income of $435,000 before income, tax expense. To compute taxable income, the following differences were noted: Income from tax-exempt municipal bonds $60,000 Depreciation deducted for tax purposes in excess of depreciation recorded on the books 120,000 Proceeds received from life insurance on death of an insured employee 100,000 Corporate tax rate for 2016 30% Enacted tax rate for future periods 35% Required: 1. Calculate taxable...

  • Rhoades Tax Services began business on December 1, 2015. Its December transactions are as follows. Dec Rhoade...

    Rhoades Tax Services began business on December 1, 2015. Its December transactions are as follows. Dec Rhoades invested $20,000 in the business in exchange for common stock. Paid $1,200 cash for December rent to Bomba Realty. 2 Purchased $1,080 of supplies on account. 2 Purchased $9,500 of office equipment; paying $4,700 cash with the balance due in 30 days. Paid $1,080 cash on account for supplies purchased December 2. 14 Paid $900 cash for assistant's wages for 2 weeks' work...

  • The year-end financial statements of Rattlers Tax Services are provided below. RATTLERS TAX SERVICES Income Statement...

    The year-end financial statements of Rattlers Tax Services are provided below. RATTLERS TAX SERVICES Income Statement Service revenue $76,500 Expenses: Salaries $45,800 Utilities 8,000 Insurance 5,600 Supplies 2,000 61,400 Net income $15, 100 RATTLERS TAX SERVICES Statement of Stockholders' Equity Common Retained Stock Earnings Beginning balance, Jan. 1 $58, eee $24,380 Issue stock 28,000 Net income 15,100 Dividends (5,800 Ending balance, Dec. 31 $86,000 $33,600 Total Stockholders Equity 82,3ee 28,000 15,100 (5.800) $119,600 Assets Cash Accounts receivable Land $ 6,900...

  • 8) Daisy Co. previously received & recorded $5,000 cash from a client for future consulting services....

    8) Daisy Co. previously received & recorded $5,000 cash from a client for future consulting services. Now Daisy Co. has provided $3,000 of the services and earned that revenue. What is the necessary adjusting entry? Debit Credit If this adjustment is not made, the following are overstated, understated, or not impacted: (completed for you on this question) Assets: not impacted Revenue: understated Liabilities: overstated Expense:_not impacted Stockholders' Equity: understated 9) Interest of $450 has accrued on a note payable. What...

  • You are provided with the following information for Wildhorse Co., effective as of its April 30,...

    You are provided with the following information for Wildhorse Co., effective as of its April 30, 2017, year-end Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Common stock Cost of goods sold Depreciation expense Dividends Equipment Income tax expense Income taxes payable Insurance expense Interest expense Inventory Land Mortgage payable Notes payable Prepaid insurance Retained earnings (beginning) Salaries and wages expense Salaries and wages payable Sales revenue Stock investments (short-term) $924 990 670 1,450 1,440 1,150 245 415 2,600 255 225...

  • Ch 1 1. Given the following dat Dec 31 Year 2 Dec 31 Year 1 Total...

    Ch 1 1. Given the following dat Dec 31 Year 2 Dec 31 Year 1 Total liabilities S128,250 $120,000 Total stockholders oquity 95.000 80.000 compute the ratio of liabilities to stockholders' equity for each year Round to two decimal places 1.50 and 107, 11.35 and 1.50 respectively respectively 1.07 and 1.19. 1.1.19 and 1.35 respectively respectively The liabilities and stockholder's equity of a company are $132,000 and $244.000, respectively. Assets should equal SS188.00 $132.00 p $376,00 12.000 A financial statement...

  • Selected financial data for Surfer Co. is provided below: ($ in millions) Sales Interest expense Tax...

    Selected financial data for Surfer Co. is provided below: ($ in millions) Sales Interest expense Tax expense Net income Total assets (beginning of year) Total assets (end of year) Total liabilities (end of year) Total stockholders' equity (end of year) $940,000 3,000 21,000 54,000 900,000 820,000 600,000 220,000 What is the return on assets for Surfer Co.? Multiple Choice 6.9% 6.3% 6.0% 6.6%.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT