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gavmur [86]
2 years ago
13

Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes ar

e accrued each month for 29% of the current month’s net income. The income taxes are paid in the first month of each quarter for the amount accrued for the prior quarter. The following information is available for the fourth quarter of the year just ended. When tax computations are completed on January 20 of the following year, Nishi determines that the quarter’s Income Taxes Payable account balance should be $33,926 on December 31 of the year just ended (its unadjusted balance is $29,826).
October net income $29,000
November met Income 18,850
December met Income 33,800
1. Determine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in the Income Taxes Payable account.
2. Prepare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the later January 20 payment of the fourth-quarter taxes.
Business
1 answer:
choli [55]2 years ago
3 0

Answer:

1. $4,100

2a. Dr Income tax Expense $4,100

Cr Income tax payable $4,100

2b. Dr Income tax payable $33,926

Cr Cash $33,926

Explanation:

1. Calculation to Determine the amount of the accounting adjustment

Income tax payable for quarter 4 $33,926

Less: Unadjusted balance in Income tax payable account $29,826

Accounting adjustment to be done as on Dec 31 $4,100

2a. Preparation of journal entries to record December 31

Adjustment to the Income as on Dec 31

Dr Income tax Expense $4,100

Cr Income tax payable $4,100

2b. Preparation of the Journal entry to record later January 20 payment of the fourth-quarter taxes.

January 20 payment of the fourth-quarter taxes.

Dr Income tax payable $33,926

Cr Cash $33,926

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You buy a lottery ticket to a lottery that costs $10 per ticket. There are only 100 tickets available to be sold in this lottery
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Expected Loss will be $3

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Expected value = [( 460 - 10 ) x 1/100 ] + [( 80 - 10 ) x 2/100 ] + [( 20 - 10 ) x 4/100 ] + [( 0 - 10 ) x 93/100] = 4.5 + 1.4 + 0.4 - 9.3 = -$3

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Export Assistance Cente

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<em>Step 2 Determine the equivalent units for March 2019</em>

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