Which amendment to the constitution legalized income tax?

In its first year of operations, Grace Company reports the following:

ANEK [815]

Answer:

D) $25,000.

Explanation:

The Accrual Basis of Accounting is the process in which income earned or expenses incurred are recorded at the time the transaction takes place, whether or not the cash has been exchanged.

Net Income is derived by subtracting Expenses from Revenue.

N.B. Prepaid Expenses are Advance Payments towards expenses and are a Balance Sheet Items and will not be recorded under Net Income Calculations until the Expenses are realized.

So, The Net Income can be calculated as follows;

Revenue $60,000

Less: Expenses $35,000

Net Income $25,000

Hence Option D will be correct answer.

#NETINCOME

#PREPAIDEXPENSES

#ACCRUALBASISOFACCOUNTING

5 0

3 years ago

Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $58,000, and Martin's capital balance $55,000.

Nikolay [14]

Answer:ask google

Explanation:

7 0

3 years ago

The Letter keys are organized into three rows. Which of the following is not a letter key row?

jeyben [28]

Base row
I'm pretty sure :)

7 0

3 years ago

The Draper Company is considering dropping its Doombug toy due to continuing losses. Revenue and costs data on the toy for the p

tiny-mole [99]

Answer:

Effect on income= -$22,000 decrease

Explanation:

Giving the following information:

Contribution margin $30,000

Fixed expenses ($40,000)

Net operating loss ($10,000)

<u>If a product line provides a positive contribution margin, generally it is convenient to continue production, at least in the short term.</u>

<u></u>

Effect on income= avoidable fixed costs - contribution margin

Effect on income= 8,000 - 30,000

Effect on income= -$22,000 decrease

5 0

3 years ago

Tyler Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January

Rainbow [258]

Answer:

Tyler Financial Services

1. Journal Entries:

January 1, 2014:

Debit Cash $10,500

Unearned Service Revenue $10,500

To record cash collected for unearned services.

December 31, 2014:

Debit Unearned Service Revenue $10,500

Credit Service Revenue $10,500

To record the earned service revenue for the year.

January 1, 2015:

Debit Cash $10,500

Unearned Service Revenue $10,500

To record cash collected for unearned services.

December 31, 2015:

Debit Unearned Service Revenue $10,500

Credit Service Revenue $10,500

To record the earned service revenue for the year.

2. Journal Entries:

January 1, 2016:

Debit Cash $30,400

Unearned Service Revenue $30,400

To record cash collected for unearned services.

December 31, 2016:

Debit Unearned Service Revenue $9,800

Credit Service Revenue $9,800

To record the earned service revenue for the year.

Explanation:

a) Data and Calculations:

Annual contract fee = $10,500 in 2014 and 2015

Modified contract fee = $9,800 in 2016

Additional fee from year 3 = $20,600 for 3 more years ($6,867 each year) from 2017 to 2019

b) Cash received ($30,400) on January 1, 2016 includes the $9,800 for 2016 and the $20,600 for the years 2017 to 2019.

8 0

3 years ago