are provided the following transactions which occurred during the tax year which 31 December 2022 for Serowe Ltd. The c
Q: Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information…
A: Business organizations compile an income statement in order to determine how much profit they make…
Q: Consider the following transactions of Johnson Software: Mar. 31 Apr. 6 Recorded cash sales of…
A: Sales tax is the amount of tax which is collected from the customer and remitted to government by…
Q: Prepare the journal entry to record the accrual of interest and the discount amortization on…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Date Account Title Debit Credit 1/1 Cash 100,000…
A: Balance Sheet - Balance Sheet is a Financial Statement that includes Assets, Liabilities and Equity.…
Q: Presented below are summary financial data from Porter's annual report: Amounts in millions Balance…
A: Current Ratio is a measure of liquidity of the firm and whether it can meet its short term…
Q: A copy machine cost $32,000 when new and has accumulated depreciation of $26,000. Suppose Copy…
A: DEPRECIATION EXPENSE Depreciation means gradual decrease in the value of an asset due to normal wear…
Q: Dill Shipyards operates a dry dock on the East Coast, where it builds and repairs ships. The…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Q: Classify all the expenditures below accordingly: Double Deduction : Non-Allowable Expenses :…
A: According to the Internal Revenue Service, a deduction is an expense that can be deducted from a…
Q: Open general ledger accounts and post to the shareholders' equity accounts. Preferred Shares Date…
A: General ledger accounts are the accounts that are prepared to keep track of business transactions.…
Q: c-1. With these new costs and selling prices, what recommendations would you make concerning the…
A: Profit is the amount which is generated by deducting the sale value of the product from its total…
Q: Problem production budget. Magic Enterprises produces three perfumes. The sales department prepared…
A: Production budget is that budget which depends on sales budget in the business. It shows how many…
Q: Which of the following is a CORRECT statement about long-term asset impairment? A. Under U.S.…
A: Long-term asset impairment is the process of recognizing a reduction in the value of a long-term…
Q: Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following…
A: The variance is the difference between the actual and standard production costs. The materials…
Q: The entity reports the following transactions for the 2022 tax year. The trustee accumulates all…
A: Taxable income refers to an amount to be charged on the revenue earned by the company after…
Q: The balance sheet data of Randolph Company for two recent years appears below. Using horizontal…
A: Horizontal analysis is one of the financial statement analysis under which each item is compared…
Q: Sales and purchase-related transactions for seller and buyer using perpetual inventory system The…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first…
A: Inventory means the products, goods, or materials, that a business holds for the purpose of resale,…
Q: Compute the break-even sales (units) under the proposed program for the following year. 5.…
A: Contribution margin is difference between selling price and variable cost. After deducting fixed…
Q: Adams Company reports the following balance sheet accounts as of December 31. Salaries payable $…
A: Lets understand the basics. Statement of financial position shows the actual position of the entity.…
Q: Determine the company’s pension expense for the current year. Prepare the journal entries to record…
A: Journal entry is the first stage of accounting process. Journal entry used to record business…
Q: Cranergy Products is a cranberry cooperative that operates two divisions, a harvesting division and…
A: The cost that one division of a firm charges another division for goods and services rendered is…
Q: C aw 11 Required information [The following information applies to the questions displayed below]…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: On January 1, 2020, AmerEx Transportation Company purchased a used aircraft at a cost of…
A: DEPRECIATION EXPENSE Depreciation is an account of expenditure which is used to allocate capital…
Q: preal-American Corporation purchased several marketable securities during 2018. At December 31,…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…
Q: Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a…
A: Variance refers to the difference between the estimated/budgeted and the actual performance of the…
Q: Kirkland Company combines its operating expenses for budget purposes in a selling and administrative…
A: Selling and administrative expense budget is the statement which is prepared by the entity to…
Q: On August 1, 2022, The Cove at Mill Lake, Inc., purchased inventory costing $56.000 by signing a 9%,…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: This year, individual X and individual Y formed XY Partnership. X contributed $50,000 cash, and Y…
A: Partnership interest refers to an individual's or entity's ownership share in a partnership. A…
Q: Uche Ltd produces a single product and the following are the accounting data; Opening stock 20.000…
A: Using marginal costing, the contribution margin is calculated as the difference between sales and…
Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…
A: Promissory notes, also known as notes payable, are a sort of debt that a person or company promises…
Q: Under Lamar Company's job costing system, manufacturing overhead is applied to Work-in-Process…
A: Calculating a corporation's entire manufacturing expenses throughout a particular period of time…
Q: Use the following data to prepare a statement of cash flows for the year ended December 31 using the…
A: Cash Flow Statement - Cash Flow Statement is a Financial Statement that includes inflow and outflow…
Q: 1 Mauro Products distributes a single product a woven basket whose selling price is $13 per unit and…
A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…
Q: Belvidere Self Storage purchased land, paying $165,000 cash as a down payment and signing a $180,000…
A: COST ALLOCATION When item of cost are Identifiable directly with some products or departments such…
Q: Hi! Please answer and show work :) Sam and Devon agree to go into business together selling…
A: In this case, the applicable section is Section 351 and as per this section services are not…
Q: Presented here are selected transactions for the Pharoah Company during April. Pharoah uses the…
A: Journal entries help in maintaining an accurate and organized record of all the business…
Q: Brian was working away at his first attempt at variance analysis for his manufacturing company. He…
A: Analyzing variances can help businesses identify areas where organization managers are doing well…
Q: If sales are $325,000, variable costs are 75% of sales, and operating income is $49,200, the…
A: Operating leverage is used for measuring the degree of the increase in operating income with the…
Q: Alpha makes ceramic vases out of specialized clay. During July, it purchased 500 kgs of clay at $60…
A: Equivalent units :— It is the sum of equivalent units completed & transferred out and equivalent…
Q: General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in…
A: Honor Code- Since you have posted a question with multiple sub-parts, we will provide the solution…
Q: (a) The liabilities of Culver Company are $86,000, Common stock account is $156,000; dividends are…
A: The connection between a company's assets, liabilities, and equity is represented by the accounting…
Q: ZA 12 6 Account 7 Number Name 8 1110 Cash 9 1120 Accounts Receivable 10 1130 Prepaid Insurance 44 11…
A: Statement of Owner's Equity is the one which is prepared at the end of the period to report the…
Q: Feb. 3. Sept 10 Sold merchandise on account to Dr J Hat $15.160. The cost of the merchandise sold…
A: Journal entries means the primary reporting of the transactions in the books of accounts. These are…
Q: How did you come up with the $25.520 for large donations and the publice support amount of $91.520?…
A: An organization is a publicly supported charity if it meets one of two tests: The organization…
Q: Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost…
A: The cost-to-retail ratio evaluates how much of the retail price of a product is made up of costs.…
Q: The units of production and sold are 25,000 units. Question: If Pacific Ocean Sdn. Bhd. wishes to…
A: Contribution margin :— It is the difference between sales revenue and variable cost. Target sales…
Q: Which principle is used to guide your decision about accruing expenses when you have difficulty…
A: Accounting Period Principle - According to this principle every transaction recorded in the period…
Q: Required information SB Exercise E8-5 to E8-10 [The following information applies to the questions…
A: Cost of Goods Sold - Cost of Goods Sold is a cost incurred to generate revenue for the company. This…
Q: Exercise 12-37 (Algo) Alternative Allocation Bases (LO 12-5) Giardin Outdoors is a recreational…
A: An allocation base is the basis on which cost accounting allocates overhead costs it may be fixed…
Q: The following items are reported on a company’s balance sheet: Cash $400,000 Marketable…
A: The ratio analysis helps to analyze the financial statements of the business. The current ratio is…
You are provided the following transactions which occurred during the tax year which 31 December 2022 for Serowe Ltd.
The company disposed some of its Heavy Plant and Machinery that it had bought on 30 November 2020 for P1,200,000. The company received P350,000. Serowe Ltd bought new Plant and Machinery to replace the disposed ones for P3,200,000.
Assume that the company elects to apply rollover relief, calculate the capital allowances on the new plant and machinery for the current tax year.
Step by step
Solved in 3 steps
- On January 1, 2022, Gore, Inc. purchased a machine for €720,000 which will be depreciated €72,000 per year for financial statement reporting purposes. For income tax reporting, Gore elected to expense €80,000 and to use straight-line depreciation which will allow a depreciation deduction of €64,000 for 2022. Assume a present and future enacted income tax rate of 30%. What amount should be added to Gore's deferred tax liability for this temporary difference at December 31, 2022?The accountant for Lajamanu Production Ltd has the task of preparing the deferred tax entries in the year-end financial statements at 30th June 2022. The company has been expensing research in a new product for a number of years. The directors are now of the opinion that the product will have a viable market and that further expenditure can be capitalised as a development asset. With this in view $160,000 was expended on 1st July 2021. It is believed that this expenditure will be recovered over a five year period and is to be amortised on a straight line basis at 20% per annum. The project does not qualify for any accelerated tax deductions over and above the full cost incurred. Required As the accountant has only recently been recruited you have been asked to complete the preparation of the journal entry adjustments for any temporary tax differences and to explain in each of the situations given above the reasons for the adjustments, why the accounts have been chosen…You are given the following transactions relating to the capital expenditure of Marang Logistics Solutions (Pty) Ltd for the year ended 31 December 2022: The tax written down value of capital items on 1 January 2022 was: Cost Capital Allowance WDV Office Buildings 800,000 50,000 750,000 Furniture and Fittings 89,000 44,000 45,000 Other plant and machinery 350,000 125,000 225,000 Commercial Vehicles 1,600,000 750,000 850,000 The following purchases were…
- SINCO Ltd. purchased a piece of equipment in the year 2018 for the sum of $ 200,000. The company is subject to a tax depreciation rate of 25%. According to the following table, what is the depreciation allowance that this company can claim in 2020? (in the following picture : Année is year)In 2025, Sheridan Company accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of $3650000. The facilities were sold in March 2026 and a $3650000 loss was recognized for tax purposes. Also in 2025, Sheridan paid $156000 in premiums for a two-year life insurance policy in which the company was the beneficiary. Assuming that the enacted tax rate is 20% in both 2025 and 2026 and that Sheridan paid $1220000 in income taxes in 2025, the amount reported as net deferred income taxes on Sheridan's balance sheet at December 31, 2025, should be a O $698800 asset. O $365000 asset. O $365000 liability. O $730000 asset.please help me with this Sun Ltd., with a taxation year that ends on December 31 and has a Class 8 UCC balance on January 1, 2022 of $475,000. During 2022, the company purchases a Class 8 property for $150,000 that is eligible for the AccII. The Company also disposes of a Class 8 property for proceeds of $72,000 which is below the property's capital cost. Required: Determine the maximum Class 8 CCA that Sun Ltd. can claim for 2022 including the UCC balance as of January 1, 2023.
- A company's trial balance at 31 December 2021 shows a debit balance of GHS700,000 on current tax and a credit balance of GHS8,400,000 on deferred The directors have estimated the provision for income tax for the year at GHS4.5m and the required deferred tax provision is GHS5.6m, GHS1.2m of which relates to a property revaluation. What is the profit or loss income tax charge for the year ended 31 December 2021?Bellago Ltd made an accounting profit before tax of $75,000 for the year ended 30 June 2020.The following items were included in the accounts: Donations to political parties , non deductible 4,000 Depreciation machinery ,20% 15,000 Annual leave expense 5,800 Rent revenue 8,000 Goodwill amortised , non deductible 12,000 For tax purposes the following applied : Depreciation rate for machinery 15% Annual leave paid 4,500 Rent received 12,000 Income tax rate…Alain company prepared draft financial statements that showed the income before tax for the year ended December 31, 2021 at P6,000,000. The board of directors authorized the financial statements for issue on March 20,2022. A manufacturing plant was destroyed by fire on January 15, 2022 resulting in a financial loss of P2,500,000. Insurance for the property amounted to P4,000,000 and the claim was received on February 14, 2022. Repairs will start on April 2022. What amount should be reported as profit before tax in the financial statements? * 2500000 9000000 4000000 6000000 What total amount should be recognized in profit or loss of Sushi Inc. for the year ended December 31,2021 to reflect non adjusting events? * 4500000 3000000 2500000 1500000
- Alain company prepared draft financial statements that showed the income before tax for the year ended December 31, 2021 at P6,000,000. The board of directors authorized the financial statements for issue on March 20,2022. A manufacturing plant was destroyed by fire on January 15, 2022 resulting in a financial loss of P2,500,000. Insurance for the property amounted to P4,000,000 and the claim was received on February 14, 2022. Repairs will start on April 2022. What amount should be reported as profit before tax in the financial statements? PROVIDE SOLUTION A. 2500000 B. 9000000 C. 4000000 D. 6000000Patterson Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during 2023: Asset #1: 7-year property; $980,000 cost; placed into service on January 20. Asset # 2: 5-year property; $440,000 cost; placed into service on August 1. View the MACRS half-year convention rates Read the requirements. Calculate Patterson's depreciation deductions for 2023. (Use MACRS rates to two decimal places, XXX%. Round the MACRS depreciation to the nearest dollar.) 2023 Depreciation Asset # 1 Asset #2 Total depreciation Patterson Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during 2023: Asset #1: 7-year property: $980,000 cost, placed into service on January 20. Asset #2: 5-year property: $440,000 cost; placed into service on August 1. View the MACRS half-year convention rates Read the requirements. . • Calculate Patterson's depreciation deductions for 2023. (Use MACRS rates to two…What is the amount of net income after tax that Vignette Company should report for the year 2021? Vignette Construction Company changed from completed contract method to the percentage of completion method of accounting for long-term construction contracts during 2021. For tax purposes, the company employs the completed contract method and will continue this approach in the future. The appropriate information related to this change is as follows: Pre-tax Income from Percentage of Completion 2020 2,028,000 1,820,000 Completed Contract 1,534,000 1,248,000 2021 Income tax rate is 35%. What is the amount of net income after tax that Vignette Company should report for the year 2021? Your answer