Question

Chapter 11 eBook * Show Me How Calculator 1. EX 11.11. BLANKSHEET ALGO. Current bites 2. EX 1101 ALGO 3. PR.11.05 ALGO 4. PE 1104 BLANKSHEET ALGO Bon Nebo co sold 12,500 annual subscriptions of Magazine 20xx for 553 during December 2018. These new subscribers will receive monthly issues, beginning in January 2019. In addition, the business had taxable income of $416,000 during the first calendar quarter of 2019. The federal tax rate is 40%. A quarterly tax payment we be made on April 12, 2079 Prepare the current sites section of the balance sheet for Bon Nebe Coon March 31, 2019, Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 2049 Federal income taxes payable Advances en magazine subscriptions 5. PR.1104 ALGO 6. EX 11 21 7. EX 11 23 EXCEL ALGO Total current 8. PE.11.03A 9. EX 11.05 10. EX 11 04 EXCEL ALGO . OW

Answer 1

Unearned Subscription revenue on Mar 31:
Subscription amount (12,500 units @53)		662500
Less: Subscription revenue recognized for 3 months	165625
	(662,500*3/12)
Advance on Subscription revenue on Mar 31:	496875
Federal Income taxes payable:
Total taxable Income of first quarter		4,16,000
Multiply: Tax rate @ 40%			40%
Federal Income taxes payable:			166400
Current Liabilities Section:
Federal Income tax payable			1,66,400
Advance on Subscription magazine		4,96,875
Total Current liabilities			6,63,275