Which of the following are normally recorded on a registration card?

Kingbird Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-

sergey [27]

Answer:

a) 2021 year income: 526,540

b) journal entries

income tax expense 225.660‬ debit

income tax deferred liability (*1) 49.650‬ debit

income tax payable 176.010‬ credit

Explanation:

Year Accounting Tax purpose Difference

2020 752200 586700 165500

2021 683500 444700 238800

2021

752,200 x 30% = 225,660

after tax income: 526.540‬

2022

683,500 x 30% = 205,050

after tax income: 478.450‬

We recognize the income tax expense n the accounting method of revenue/expense recognizition

while, the payable will use the goverment purposes.

Then, the differnce wi considered either income tax deferred.

*1 it is a liability as the company is paying lower taxes to day to pay more than before.

3 0

3 years ago

The net income for the year for Genesis, Inc. is $750,000, but the statement of cash flows reports that the net cash provided by

fredd [130]

Answer:

There are certain adjustments to net income to calculate the operating cash flow.

Since net income is more than operating cash flow, that means that:

Net income includes gain from sale of fixed assets,

It might include unrealized incomes.

The change in current assets might have been positive, as increase in current assets is deducted.

Or that the change in current liabilities is positive that means the current liabilities have decreased and then such decrease will be deducted from net income.

7 0

4 years ago

What is the purpose of using predetermined overhead rates: Variation in cost assignment due to short-term variations in volume c

Sunny_sXe [5.5K]

Answer:

All of the answers are correct.

Explanation:

At the beginning of the accounting period a pre-determined overhead is computed by dividing the estimated overhead production by the estimated basis of operations. The default overhead rate is then applied to manufacturing, so that the standard cost for a product may be calculated

The purpose of using pretermined overhead rates are

Delays in product costing can be avoided

Variation in cost assignment due to seasonality can be prevented

Variation in cost assignment due to short-term variations in volume can be prevented

The Use of predetermined overhead rates serves all the above purposes

Hence, all answers are correct.

6 0

3 years ago

The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash

slava [35]

Answer: Full Disclosure Principle

Explanation:

The Full Disclosure Principle is a principle in Accounting that aims to be keep the relevant business information as transparent as possible. The principle therefore requires that all information relating to the business be disclosed so that the stakeholders in the business will be able to reasonably understand the operations of the business.

As only financial data can be reported in financial statements such as cash related activities in the Cashflow Statement, the principle requires that important noncash financing and investing activities be reported on the statement of cash flows or in a footnote so that the readers of the statement will not have any missing information.

5 0

3 years ago

Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optim

Amiraneli [1.4K]

Answer:

c. $2.0 million for Lopes and by $2.5 million for HomeMax.

Explanation:

For the problem above, the two organizations agreed to work on a particular project because they believed that they will benefit from the outcome of the project. Based on the available information provided in the question, the profit that Lopes will make yearly will increase by $2.0 million while that of HomeMax will increase by $2.5 million.

3 0

4 years ago