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aliya0001 [1]
3 years ago
15

You have been asked to review the December 31, 2021, balance sheet for Champion Cleaning. After completing your review, you list

the following three items for discussion with your superior: An investment of $30,000 is included in current assets. Management has indicated that it has no intention of liquidating the investment in 2022. A $100,000 note payable is listed as a long-term liability, but you have determined that the note is due in 10 equal annual installments with the first installment due on March 31, 2022. Deferred revenue of $60,000 is included as a current liability even though only two-thirds will be recognized as revenue in 2022, and the other one-third in 2023.
Required:
Determine the appropriate classification of each of these items.
Business
1 answer:
yarga [219]3 years ago
5 0

Answer:

Champion Cleaning

Appropriate Classifications:

Long-term assets:

Investment of $30,000

Current liabilities:

Short-term note payable $10,000

Short-term deferred revenue $40,000

Long-term liabilities:

Long-term note payable $90,000

Long-term deferred revenue $20,000

Explanation:

a) Data and Analysis:

Investment of $30,000 = long-term asset

Note payable:

Short-term note payable = $10,000 ($100,000/10)

Long-term note payable = $90,000 ($100,000/10 * 9)

Deferred Revenue:

Short-term deferred revenue = $40,000 ($60,000 * 2/3)

Long-term deferred revenue = $20,000 ($60,000 * 1/3)

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This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $218,000. Last year, their total t
romanna [79]

Answer:

1. Yes

2. $7,400

Explanation:

Basic Rules For Estimated Tax For Individuals

Any individual who has estimated tax for the year of $1,000 or more and  whose withholding does not equal or exceed the “required annual payment” must make quarterly payments. Otherwise, a penalty may be assessed. The required annual payment is the smaller of the following amounts:  

1.Ninety percent of the tax shown on the current year's return.  

2.One hundred percent of the tax shown on the preceding year's return (the return must cover the full 12 months of the preceding year). If the AGI on the preceding year's return exceeds $150,000 ($75,000 if married filing separately), the 100% requirement is increased to 110%.

Are Paula and Simon required to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty?

Following the basic rules above, yes, Paula and Simon have to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty.

If so, how much?

Amount of income tax liability = $218,000

In general, taxpayers must pay at least 90 percent of their tax bill during the year to avoid an underpayment penalty when they file.

Therefore Minimum estimated payments-90% : $218,000 * 0.9 = $196,200

110% of the preceding year's tax: $182,000 * 1.10 = $200,200

According to the basic rules the required annual payment is the smaller which is $196,200.

Tax withholding from their employers = $188,800

Estimated tax payments required = $196,200 - $188,800 = $7,400

5 0
3 years ago
You receive five annual cash flows of $10,000 with the first cash flow being received today and the last cash flow occurring 4 y
ivanzaharov [21]

Answer:

FV= $75,437.02

Explanation:

Giving the following information:

Number of cash flows= 5

Cash flow= $10,000

Total number of periods= 10 years

Interest rate= 6% compounded annually

<u>First, we need to calculate the future value of the 5 cash flows in 5 years using the following formula:</u>

<u></u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {10,000*[(1.06^5) - 1]} / 0.06

FV= $56,370.93

<u>Now, the value at the end of 10 years:</u>

FV= PV*(1+i)^n

FV= 56,370.93*(1.06^5)

FV= $75,437.02

7 0
3 years ago
A large office supply company sells many of its consumer products over the Internet. This is
Mrac [35]

A large office supply company sells many of its consumer products over the Internet. This is known as e-commerce.

Trading the consumer products over internet is the current trend these days. This way is known as e-commerce.

What is E-commerce?

  • E-commerce, often known as electronic commerce, is the exchange of goods and services as well as the sending of money and data through an electronic network, most commonly the internet.
  • These business dealings can be either B2B (business-to-business), B2C (business-to-consumer), C2C (consumer-to-consumer), or C2B.
  • E-business and e-commerce are frequently used interchangeably. The transactional procedures that make up online retail shopping are also occasionally referred to as e-tail.
  • The widespread use of e-commerce sites like Amazon and eBay over the past 20 years has significantly boosted the growth of online retail. According to the U.S., e-commerce made up 5% of all retail sales in 2011.

To know more about E-commerce visit:

brainly.com/question/24051375

#SPJ9

6 0
2 years ago
Accounting information systems integration
Arlecino [84]
Accounting information system integration is the process of standardizing the procedure for recording transactions and disseminating financial information.  <span />
4 0
3 years ago
special - time order for 15,000 bird feeders at $ 3,50 per unit Bluebird currently produces and sells . This level represents 80
schepotkina [342]

Answer:

$15,000 Increase

Explanation:

Calculation to determine what the effect on net income will be :

Effect on net income = (15,000 x $3.50) – ($2.50x 15,000)

Effect on net income = $52,500-$37,500

Effect on net income = $15,000 Increase

Therefore If Bluebird accepts this additional business , the effect on net income will be :$15,000 Increase

5 0
3 years ago
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