Answer:
1 . Dr ncome tax expense 7
Dr Deferred tax asset 4
Cr Income tax payable 11
2. Dr Income tax expense3
Cr Valuation allowance-Deferred tax asset3
Explanation:
Preparation of Journal entries
JournalDebitCredit
(In million)
1 . Dr ncome tax expense 7
($11-$4=7)
Dr Deferred tax asset 4
($16× 25% = $4)
Cr Income tax payable 11
($44 × 25% = $11 )
2. Dr Income tax expense3
Cr Valuation allowance-Deferred tax asset3
(3/4 × $4) = $3 million
Deferred tax asset= ($16× 25%)
Deferred tax asset= $4 million
Income tax payable= ($44 × 25%)
Income tax payable= $11 million
Answer:
The credit on December 31 is to credit Treasury Stock with $15,000.
Explanation:
There are two methods for accounting for Treasury Stock. The first is the par value method. With this method, the Treasury Stock account is debited or credited with the par value for each transaction, while the difference in par value is taken to the Additional Paid-in Capital account.
Using the cost method, the Treasury Stock account is debited and credited with the value of each transaction and the Additional Paid-in Capital account is not affected.
This implies that under the cost method, the purchase and resale of treasury stock is recorded by debiting and crediting the treasury stock account by the actual cost of purchase and actual value of sale.
Answer:
C. She wants to work with a different group of adults.
Explanation:
Whitney has an associate degree in early childhood education, so she is qualified for the job, the pay is $35,000 which is above her least requirement and she likes to work with children which the company does so, however she does not want to work with such group of adults (employees) who are not comfortable working with the children as she is a social person and wants to work in a fun environment with happy people.
Answer:
C) Selling expenses.
Explanation:
All Costs incurred to make sales are known as selling expenses. these expenses range from advertising to delivering the goods to the customer. Selling expenses are included in the profit and loss section of the Income statement.
