<u>Solution and Explanation:</u>
SC's Depreciable assets for the purpose of financial reporting and income taxes were $40000 and $33000 respectively. Its taxable income is$97000.Temporary difference will be there because of Depreciation.
Temporary Difference=Financial reporting Dep-Income tax depreciation
=40000 minus 33000
=7000
Pretax financial income=taxable income+Temporary Difference
=97000+7000=$104000
Deferred tax liability=7000 multiply 30%=2100
Income tax expense=104000 multiply 30%=31200
Income tax payable=97000 multiply 30%=29100
Dec 31 Income Tax ExpensenA/C Dr. $31200
To Income Tax Payable A/C $ 29100
To Deferred Tax Liability A/C $ 2100
<u>
Answer:b
</u>
Slatter Company
Partial Balance Sheet
December 31, 2013
Noncurrent Liabilities
Deferred Tax Liability $2100
Answer:
Explanation:
Dec 31:
Debit Bad debts expense = 0.003 × $896000 = $2688
Credit Allowance for doubtful accounts = $2688
February 1:
Debit Allowance for doubtful accounts $448
Credit Accounts receivable—P. Park $448
June 5:
Debit Accounts receivable—P. Park $448
Credit Allowance for doubtful accounts $448
June 5:
Debit Cash $448
Credit Accounts receivable—P. Park $448
Answer:
An increase of $2,500
Explanation:
During cash-basis accounting method, all income and expenses that results to ACTUAL CASH INFLOW and OUTFLOW will be recorded. Thus, those income and expenses that applies for the period will not be recorded yet as long as there is no actual cash outflow. And all income made on account for the period will not be recognized unless there is an actual collection. Based on the stated facts, Sussman Co.,recorded $1,900 sales instead of the actual sales of $5,600 using accrual basis and has never been recorded the expenses incurred in the accrued salaries.
So, $5,600 less $1,900 cash collection which already have recorded on cash basis method, there will be an additional sales to be recorded at $3,700 less the salaries expense already incurred but not yet paid of $1,200. There will be an additional income of $2,500 after restatement.
Answer:
<em>Monetary policy</em> consists of management of money supply and interest rates, aimed at achieving macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
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