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3 years ago

Match the different categories of income to the calculation used to derive them.

Business

2 answers:

zhuklara [117]3 years ago

5 0

Answer:

Adjusted Gross Pay=Gross pay – deductions

Taxable income=Adjusted Gross pay-tax

Disposable income=taxable income- taxes

Savings=Disposable income-personal spending

Explanation:

Kisachek [45]3 years ago

3 0

Answer

Adjusted Gross Pay=Gross pay – deductions (blank)

Taxable income=Adjusted Gross pay-tax (blank)

Disposable income=taxable income- taxes (blank)

Savings=Disposable income-personal spending (blank)

Explanation

Adjusted gross income (AGI) is the individual income subtracting the deductions. To calculate the AGI we first start with finding the gross income which is a reflection of all the income a person receives over the course of a year. This step will be followed by subtracting the adjustments made such as student loan payments and contribution. This will leave you with the adjusted gross income.

Taxable income is the amount remaining after subtracting the deductions and claiming exemptions from your adjusted gross income. It is used to find the amount of money a person /firm owes to the government in a particular tax year. It is calculated as all your incomes reduced by expenses and other deductions.

Disposable income is money available for usage and saving in a household after subtracting the income taxes. It is also called your net pay. Disposable income is an indicator of the economy in that, it determines consumer spending and determines the demand of goods and services acquired at various prices and a particular time period.

The money left over from the salary after paying government taxes can be spent or saved.When you subtract your spending from the disposable income, you get the savings that a person keeps for future use or investments. Personal savings are calculated by subtracting your personal consumption from the personal disposable income.

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Answer:

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2 years ago

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net income $90000 $90000

salaries $24000 $12000 -$36000 $54000

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opening balance $56000 $36000

net income $30000 $30000

salaries $24000 $12000 -$36000 - $6000

interest @ 10% $5600 $3600 -$9200 -$15200

loss share 70 : 30% -$10640 -$4560 +$15200 $0

closing balance $74960 $47040

JOURNAL ENTRIES

1 . Debit partnership summary income account $90000, credit capital accounts McGILL ; salary 24000, interest on capital 5600, profit share 31360. Symth ; salary 12000, interest on capital 3600, profit share 13440

2 . Debit Partnership summary income account 30000 , credit Capital accounts McGill : salary 24000 , Smyth : 12000 , Interest on capital account McGill : 5600, Smyth 3600.

for loss sharing journal

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Explanation:

6 0

3 years ago

Read 2 more answers