1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Umnica [9.8K]
2 years ago
11

In 2018, DFS Medical Supply collected rent revenue for 2019 tenant occupancy. For income tax reporting, the rent is taxed when c

ollected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy the rental property. The deferred portion of the rent collected in 2018 amounted to $490,000 at December 31, 2018. DFS had no temporary differences at the beginning of the year.
Required: Assuming an income tax rate of 40% and 2018 income tax payable of $940,000, prepare the journal entry to record income taxes for 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
Fofino [41]2 years ago
6 0

Answer:

Since Tax Payable is $940000 @ 40%, Taxable income will be:

= $940,000 × (1/40%)

= $2,350,000

Only Temporary difference is Rent $490,000, which is being recognized for tax but not for Books.

Hence Pre-Tax Accounting income will be:

= $2,350,000 - $490,000

= $ 1,860,000

Therefore, Journal Entry will be:

Income Tax Expense A/c (1,860,000 × 40%)  Dr. $744,000

Deferred Tax Asset A/c  (490,000 × 40%)      Dr. $196,000

To Income Tax Payable                                                             $940,000

(To record income taxes for 2018)

You might be interested in
$6000 is invested into 2 accounts at 8% and 7.5% and the total interest is $472.50 how much is invested at 8%?
djverab [1.8K]
0.08x+0.057 (6000-x)=472.5
Solve for x
X=4500 invested at 8%
4 0
2 years ago
A method of estimating the amount of bad debt expense whereby management establishes a percentage relationship between the amoun
Flauer [41]

Answer: provisions

Explanation: According to ias 37

5 0
3 years ago
Oh, no! The television was finally delivered today, but was left on the porch by the delivery company. When Jamie Lee was finall
stepan [7]

Answer:

Jamie Lee should call her credit card company and ask them to stop payment for the television since the company has refused to accept a return of the television.

Explanation:

The Fair Credit Billing Act is a law that protects customers from different types of disputed charges. According to this law an individual has the right to stop the payment of a service he/she is not completely satisfied with.

This law protects a customer from unfair billing practices such as errors in calculation, wrong address. This law only applies to customers that have a credit card. This law is very important because it enables a customer to withhold payment for displeased services.

6 0
3 years ago
Five individuals organized Miami Music Corporation on January 1. At the end of January 31, the following monthly financial data
s344n2d4d5 [400]

Answer:

a. Profit(loss) = Total revenue - Total expenses

= 131,000 - 90,500

= $41,000

The company did in fact generate<u> profit of $41,000 </u>and this can be shown from the Income Statement which is where profit or loss is calculated.

b. A company uses its assets to pay off its liabilities so if the liabilities are less than the assets then the company is capable of paying off its liabilities:

Assets = Cash + Accounts Receivable + Supplies

= 30,800 + 25,300 + 40,700

= $96,800

Liabilities are just the Accounts Payable of $25,700.

<em>Liabilities are less than Assets so Miami Music does indeed have sufficient resources to pay its liabilities. </em>

This information comes from the <u>Balance Sheet</u> which is where assets and liabilities are shown.

7 0
2 years ago
To motivate employees to perform better, the human resources department of Martianse, a chain of retail apparel stores, replaced
Lynna [10]

Answer:

- Behavioural Substitution

Explanation:

Martianse human resources department uses and deploy the concept of Behavioural Substitution.

To begin, Martianse goal, as a firm, is to motivate the employees to perform better. Hence, the human resources department has come up with measures to achieve that. It is thus believed that replacing the fixed incentive system hitherto known with the firm, should be replaced by a performance based system. By this, the firm believes its primary goal will be accelerated.

Behavioural Substitution is thus the concept that the human resources department has displayed in their analysis and engagement. For one, behavioural substitution is simply the procedures aimed at replacing and/or supplanting efforts and actions that does not lead to goal accomplishments. By general belief, the old style of reward system used by Martianse has been seen as one not leading to goal actualization. Hence, it is important to substitute this non productive reward system with one established to elicit more better and improved performance from the workforce.

7 0
3 years ago
Other questions:
  • What are the opportunity costs of going to the gym for a workout rather than studying for an economics test?
    8·1 answer
  • All of the following represent cash outflows to the firm excepta. Taxes.b. Interest payments.c. Dividends.d. Purchase of plant a
    11·1 answer
  • Credit card A has an APR of 12.5% and an annual fee of $48, while credit card B has an APR of 15.4% and no annual fee. All else
    5·1 answer
  • Stock Investment Transactions On September 12, 2,000 shares of Aspen Company were acquired at a price of $50 per share plus a $2
    9·1 answer
  • Blackhorse Productions, Inc. used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts s
    8·1 answer
  • PLEASE HELP URGENT 30 points!
    6·2 answers
  • Machine X has an initial cost of $10,000. It is expected to last 12 years, to cost $200 per year to maintain and to have a salva
    11·1 answer
  • 48. Although SellSmart brings together buyers and sellers and helps negotiate exchanges, it does not actually take title to any
    13·1 answer
  • What can a producer gain by specializing?
    14·2 answers
  • what was a primary purpose of the program being promoted by this poster? (7f) question 9 options: to encourage women to join the
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!