Answer: See explanation
Explanation:
a. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.
Debit Income Tax Expense $40400
Debit Defered Tax Asset $7070
Credit Income Tax Payable $19190
Credit Defered tax liability $28280
(To record income tax expense and defered tax/liability).
Note that:
Income Tax Expense was gotten as:
= $202,000 × 20%
= $202000 × 0.2
= $40,4000
Income Tax Payable was gotten as:
= $95,950 × 20%
= $95950 × 0.2
= $19,190
2. Prepare the income tax expense section of the income statement for 2020.
Income statement for year ended 31 December 2020
Income before tax = $202000
Less: Income Tax expense - Current = $19190
Less: Income Tax expense - Defered = $21210
Net income = $161600
Answer:
Bad Debt Expense = $652
Explanation:
Ending balance [Un-adjusted) = Beginning balance + Credit sales - Cash collected - Written off
Ending balance [Un-adjusted) = $40,000 + $80,000 - $78,200 - $500
Ending balance [Un-adjusted) = $41,300
Allowance For Doubtful Accounts = Beginning balance - Written off
Allowance For Doubtful Accounts = $1,500 - $500
Allowance For Doubtful Accounts = $1,000
Adjusted amount required = $41,300 × 4%
Adjusted amount required = $1,652 Credit
Un-adjusted balance available = $ 1000 Credit
Bad Debt Expense = Adjusted amount required - Un-adjusted balance available
Bad Debt Expense = $1,652 - $1,000
Bad Debt Expense = $652
Answer:
This statement describes. c) revenue recognition
Explanation:
The revenue recognition principle states that one should only record revenue when it has been earned, not when the related cash is collected.
Answer:
a.common stock.
Explanation:
The additional $10,000 of owners equity after listing on the stock market will be named as common stock. After listing company issues shares for capital investment in it. Common stock is the appropriate term used for every addition in the owners equity. So the correct option is a.common stock.
