1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zarrin [17]
2 years ago
7

Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) 2021 2022 2

023 Subscription revenue recognized (earned) $ 350 $ 360 $ 320 Subscription payments received in cash 390 340 360 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future. Required: 1. What is the balance sheet account that gives rise to a temporary difference in this situation
Business
1 answer:
SVETLANKA909090 [29]2 years ago
8 0

Answer: Unearned subscription revenue.

Explanation:

Tax is made on a cash basis which means that a transaction is eligible for taxation once cash has been paid for it. Businesses however have to use the Accrual basis which only record transactions in the period that they have been incurred.

In this scenario, there is more subscription payment in cash than the company recognized which means that the company has not yet delivered the service they were paid for and so could not recognize the subscriptions. They will however be taxed on those amounts because the cash has come in.

The account giving this temporary difference is therefore the Unearned Subscription Revenue account.

You might be interested in
What are six disadvantages of self-employment?
xz_007 [3.2K]
Being self-employed for the past 15+ years I can tell you that there are many disadvantages of self-employment. My top six would be:

1. I pay more taxes
2. My pay is never the same (I have good months and bad months)
3. I tend to over-work (I work an average of 70+ hours a week.
4. There are no benefits (medical, dental, etc.)
5. I do not get paid if I take off (sick or vacation)
6. There are many distractions in my home that makes working difficult sometimes (personal call, my pets, Grandchildren, etc.) 

I hope this helps. if you have any questions, please don't hesitate to ask.

Take care,
Diana
7 0
3 years ago
At March 1, 2013, Minutemen Corp. had supplies on hand of $500. During the month, Minutemen purchased supplies of $1,200 and use
djverab [1.8K]

Answer:

The March 31 adjusting journal entry should include a:

Work In Progress Account $ 1,400 (debit)

Inventories/ Supplies $ 200 (credit)

Cash $1,200 (credit)

Explanation:

<em>When Minutemen purchased supplies of $1,200:</em>

Inventories/ Supplies $ 1,200 (debit)

Cash $1,200 (credit)

<em>When Minutemen used supplies of $1,400 :</em>

Work In Progress Account $ 1,400 (debit)

Inventories/Supplies $1,400 (credit)

<em>Combined Journal</em>

Work In Progress Account $ 1,400 (debit)

Inventories/ Supplies $ 200 (credit)

Cash $1,200 (credit)

3 0
3 years ago
Read 2 more answers
Question 8 of 10
kykrilka [37]

Answer:

c. Labor

Explanation:

There are four factors of production. They include labor, land, capital, and entrepreneurship. These factors of production are also known as inputs in the manufacturing process. They represent the essential requirement for production.

From the list provided, labor is an essential commodity. It is among the factors of production. Labor refers to the human contribution in production through their skills, energy, and experience. It is the human input or the work done by human beings. The reward for labor service is the wages and salaries paid to workers.

7 0
3 years ago
When $2,500 of accounts receivable are determined to be uncollectible, which of the following should the company record to write
never [62]

Answer:

d. A debit to Allowance for Uncollectible accounts and a credit to accounts receivable

Explanation:

In an entity using the allowance method all write offs of receivables are routed through the allowance account.

The allowance account is credited with the estimated amount of uncollectible accounts and the bad debts expense account is debited.

When an account receivable is written off it is debited to the allowance for uncollectible accounts is debited and receivable accounts is credited.

5 0
3 years ago
Norma receives an increase in her nominal income. She complains that the current inflation rate of six percent erodes the real p
sveticcg [70]

Answer:

a. only if the increase in her nominal income is less than six percent.

Explanation:

Inflation describes the rate of price increment in the economy over time.  A rise in inflation means that the prices of goods and services in the country are also rising. High inflation erodes the purchasing power of a currency.

Norma will not feel the effect of an increase in her income if the rise is lower than the inflation rate. An inflation rate of 6 per cent means that the prices of good and service have gone up by that 6 per cent. Her purchasing power is lower by 6 per cent. For an increment in income to benefit her, it must be above the inflation rate.

5 0
3 years ago
Other questions:
  • Consider luxury weekend hotel packages in Las Vegas. When the price is $250, the quantity demanded is 2,000packages per week. Wh
    11·1 answer
  • Boswell company manufactures two products, regular and supreme. boswell's overhead costs consist of machining, $3,000,000; and a
    8·1 answer
  • When you buy stock are you guaranteed profit?
    6·1 answer
  • Jurisdiction M imposes an individual income tax based on the following schedule.
    7·1 answer
  • Consider the following: Alex is one of the leading widget producers in the country. His total costs amount to $10,000, total fix
    12·1 answer
  • During February 2017, its first month of operations, the owner of Schwenn Enterprises invested cash of $100,000. Schwenn has cas
    8·1 answer
  • If the government decides to adopt a carbon tax, the price of goods whose production generates carbon emissions will __________
    10·1 answer
  • When fast food restaurant, tommy's tacos, had poor sales in central city, marketing managers closed one outlet on the east side
    15·1 answer
  • At the break-even point of 1000 units, variable costs are $60000, and fixed costs are $35000. How much is the selling price per
    10·1 answer
  • v91. If a U.S. dollar purchases 4 Argentinean pesos, and a gallon of milk costs $3 in the U.S. and 6 pesos in Argentina what is
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!