Explanation:
4th one is the answer
American Railway Union (ARU)
Answer:
Debit Cash account $6,500
Credit Deferred revenue $6,500
Explanation:
When cash is collected in advance for a service yet to be rendered, the revenue for that service will be deferred in recognition.
The company will recognize an asset in form of cash and a liability in form of deferred revenue.
Hence to record the transaction,
Debit Cash account $6,500
Credit Deferred revenue $6,500
Being entries to recognize cash collected for service yet to be rendered.
Answer:
b)
i) Subtotal the income shown on lines 1 through 8 of Form 1041 and add the tax-exempt income from line 1 in “Other Information” on the back of the return to arrive at total income.
Total Income = Taxable income + Non-taxable income
= $50000 + $30000
= $80000
ii) Divide the total income by the total taxable income and multiply the results by the total fiduciary fees.
= ($80000/$50000)*8000
=$12800
iii) Take the deductible fees on line 12 and subtract the balance from the total tax-exempt income to arrive at the adjusted tax-exempt income.
= $30000 - ($12800-8000)
= $25200
Subtotal the income shown on lines 1 through 8 of Form 1041 and add the tax-exempt income from line 1 in “Other Information” on the back of the return to arrive at total income.
Divide the total income by the total taxable income and multiply the results by the total fiduciary fees.
Take the deductible fees on line 12 and subtract the balance from the total tax-exempt income to arrive at the adjusted tax-exempt income.
Place that number on Schedule B, line 2.
Explanation:
