1. As per Cash Basis -
2. As per Accrual Basis -
3. AI should you accrual basis of accouting so
that he will not have to pay taxes on the $16,500 Uneanred
Revenue.
Problem 4-31 (Algorithmic) (LO. 2,5) Al is a medical doctor who conducts his practice as a...
Problem 4-31 (Algorithmic) (LO. 2, 5) Al is a medical doctor who conducts his practice as a sole proprietor. During 2020, he received cash of $507,800 for medical services. Of the amount collected, 533,500 was for services provided in 2019. At the end of 2020, Al had accounts receivable of $91,400, all for services rendered in 2020. In addition, at the end of the year, Al received $15,000 as an advance payment from a health maintenance organization (HMO) for services...
Problem 4-15 (Algorithmic) (LO. 2) Al is a physician who conducts his practice as a sole proprietor. During 2019, he received cash of $558,400 for medical services. Of the amount collected, $40,800 was for services provided in 2018. At the end of 2019, Al held accounts receivable of $89,700, all for services rendered in 2019. In addition, at the end of the year, Al received $17,000 as an advance payment from a health maintenance organization (HMO) for services to be...
Al is a medical doctor who conducts his practice as a sole proprietor. During 2020, he received cash of $661,000 for medical services. Of the amount collected, $40,800 was for services provided in 2019. At the end of 2020, Al had accounts receivable of $96,500, all for services rendered in 2020. In addition, at the end of the year, Al received $16,500 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2021. a....
Al is a medical doctor who conducts his practice as a sole proprietor. During 2019, he received cash of $592,600 for medical services. Of the amount collected, $52,800 was for services provided in 2018. At the end of 2019, Al had accounts receivable of $93,100, all for services rendered in 2019. In addition, at the end of the year, Al received $16,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2020. a....
oblem Set Question 17 0.5 pts owns an accounting practice (sole proprietorship). During 2020, Al received payments of $200,000. The $200,000 consists of: • $30,000 payment for services rendered in 2019 but not paid by the client until 2020 • $160,000 payment for services rendered and paid in 2020 • $10,000 prepayment received in 2020 for services that will be rendered in 2021 In addition to the $200,000 payments received in 2020, at the end of 2020 Al held accounts...
Ann owns an accounting practice (sole proprietorship). During 2020, Ann received payments of $200,000. The $200,000 consists of: $30,000 payment for services rendered in 2019 but not paid by the client until 2020 $160,000 payment for services rendered and paid in 2020 $10,000 prepayment received in 2020 for services that will be rendered in 2021 In addition to the $200,000 payments received in 2020, at the end of 2020 Ann held accounts receivable of $10,000, all for services rendered in...
Ann owns an accounting practice (sole proprietorship). During 2020, Ann received payments of $200,000. The $200,000 consists of $30,000 payment for services rendered in 2019 but not paid by the client until 2020 $160,000 payment for services rendered and paid in 2020 $10,000 prepayment received in 2020 for services that will be rendered in 2021 In addition to the $200,000 payments received in 2020, at the end of 2020 Ann held accounts receivable of $10,000, all for services rendered in...
Question 16 0.4 pts Ann owns an accounting practice (sole proprietorship). During 2020, Ann received payments of $200,000. The $200,000 consists of: • $30,000 payment for services rendered in 2019 but not paid by the client until 2020 • $160,000 payment for services rendered and paid in 2020 • $10,000 prepayment received in 2020 for services that will be rendered in 2021 In addition to the $200,000 payments received in 2020, at the end of 2020 Ann held accounts receivable...
Problem 10-30 (Algorithmic) (LO. 4) Norma, who is single and uses the cash method of accounting, lives in a state that imposes an income tax. In April 2019, she files her state income tax return for 2018 and pays an additional $940 in state income taxes. During 2019, her withholdings for state income tax purposes amount to $3,290, and she pays estimated state income tax of $658. In April 2020, she files her state income tax return for 2019, claiming...
Problem 5-55 (LO. 3) How does the tax benefit rule apply in the following cases? a. In 2018, the Orange Furniture Store, an accrual method sole proprietorship, sold furniture on credit for $1,00 to Sammy. The cost of the furniture was $600. In 2019, Orange took a bad debt deduction for the $1,000. In 2020, Sammy inherited some money and paid Orange the $1,000 he owed. Orange's owner was in the 35% marginal tax bracket in 2018, the 12% marginal...