bh.3 Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six monthsafter services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For taxpurposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2023-2026are as follows:Service RevenueCollections202320242025$ 692,000$ 652,000782,000810,0002026734,000752,000742,000748,000Pretax AccountingIncome$ 218,000292,000260,000232,000There are no differences between accounting income and taxable income other than the temporary difference described above. Theenacted tax rate for each year is 25%.(Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2023-2026.)Required:1. to 3. Prepare the appropriate journal entries to record Alsup's 2024 income taxes, 2025 income taxes, and 2026 income taxes.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answersin whole dollars.

Asset valuation, revenue recognition, and depreciation techniques are only a few of the causes of…

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2023-2026 are as follows: Service Revenue Collections 2023 $ 692,000 $ 652,000 2024 2025 782,000 742,000 2026 810,000 734,000 752,000 Pretax Accounting Income $ 218,000 292,000 260,000 232,000 748,000 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%. (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2023- 2026.) Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2024 income taxes, 2025 income taxes, and 2026 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers عبدالماء عامطس من

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2023-2026 are as follows: Service Revenue Collections 2023 $ 692,000 $ 652,000 2024 2025 782,000 742,000 2026 810,000 734,000 752,000 Pretax Accounting Income $ 218,000 292,000 260,000 232,000 748,000 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%. (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2023- 2026.) Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2024 income taxes, 2025 income taxes, and 2026 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers عبدالماء عامطس من

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter12: Tax Administration And Tax Planning

Section: Chapter Questions

Problem 10MCQ

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Waterway and Crede, CPAS, are preparing their service revenue (sales) budget for the coming year (2022). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Auditing Tax Consulting 3,040 3,840 1,920 Quarter 2 2,000 2,720 1,920 Quarter 3 Quarter 4 2,560 2,560 1,920 3,120 3,200 1,920 Average hourly billing rates are auditing $70, tax $80, and consulting $100. Prepare the service revenue (sales) budget for 2022 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
INVOICE issued date 05/05/2020 as below: You have received an invoice from one of our suppliers and you are required to prepare: (i) Double entry for the invoice you have received base on the account and supplier number provided. (ii) Base on tax point of view, specify each item whether it is Capital or Revenue expenditure.
1. Match each form name with its associated description. Form 1099-NEC Form 1096 Form W-9 Request for Taxpayer Identification Number and Certification Nonemployee Compensation Annual Summary and Transmittal of U.S. Information Returns 2. The SUTA taxes for an employee whose year-to-date earnings prior to the current period are $12,400, who earns $1,500 during the current period, who works in a state with a credit reduction of 1.5%, and whose state imposes a SUTA tax rate of 2.5% with an associated wage base of $12,600 would be$______ 3. Which of these states does NOT levy SUTA tax on employees as well as employers? Answer: A. New Jersey B. Alaska C. Pennsylvania D. Rhode Island
Problem Solving Directions: 1. Compute for the gross taxable income and tax due of Ms. Myra dela Torre, supervisor of the telecommunication company. Basic salary of P1,401,148.83, 13th-month pay, and other benefits P90,000.00, de minimis benefits of P40,000.00, SSS/GSIS/, PHIC, and Pag-ibig contributions P16,570.60. 2. Explain the procedure of how you computed the gross taxable income and tax due of Ms. dela Torre.
On September 30, Cody Companys selected account balances are as follows: In general journal form, prepare the entries to record the following: Oct. 15Payment of liabilities for FICA taxes and the federal income tax. 31Payment of liability for state unemployment tax. 31Payment of liability for federal unemployment tax.
Consider the following accounts and determine if the account is a current liability, a noncurrent liability, or neither. A. cash B. federal income tax payable this year C. long-term note payable D. current portion of a long-term note payable E. note payable due in four years F. interest expense G. state income tax
How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
Trombone deducts employment taxes from its employees' wages on a monthly basis and pays these to the local taxation authorities in the following month. At the year-end the financial statements will contain an accrual for income tax payable on employment income. You will be in charge of auditing this accrual. Question: Describe the audit procedures required in respect of the year-end accrual for tax payable on employment income.
Revenue accruals and other adjustmentsMonroe County is preparing financial statements for the year ended December 31, 2022. Based on the following facts, prepare journal entries to record the appropriate year-end revenue accruals and other adjustments in the county’s General Fund.1. At year-end, Monroe’s delinquent property tax receivables were $66,000. The county estimated that $38,500 of those delinquencies would be collected by March 1, 2023, and the balance would trickle in during the rest of 2023. 2. Sales taxes are collected by the state on behalf of the county. On January 20, 2023, the state advised the county that (a) it would send the county a check for $165,000 before February 29, 2023, for taxes collected by merchants for the fourth quarter of 2022; and (b) based on past experience, it anticipated sending an additional check for approximately $49,500 during March or April for taxes received from late filers. Monroe's policy regarding sales taxes is to consider as "available"…
Accounting for personal income taxes Prepare journal entries to record these transactions and events. 1. During 2022 Leavitt County collected personal income taxes in the amount of $3,200,000 as a result of withholdings by employers and payments of estimated taxes by taxpayers for 2022. 2. At year-end Leavitt County's Finance Director estimated that, by April 15, 2023 (when taxpayers are required to file their final tax returns for 2022), taxpayers will make payments of $175,000 with their tax returns and request refunds of $320,000. 3. The Finance Director also estimated that late filers will pay $45,000 of taxes applicable to 2022 when they ultimately file their tax returns. Leavitt County's written policy regarding personal income taxes is to consider only payments received with final returns by April 15 as "available." Account Debit Credit 1. Cash 3,200,000 Revenues - income taxes 3,200,000 To record taxes collected in 2022. 2. Deferred inflow of resources - income taxes 175,000…
General Purpose Financial Statements The following Trial Balance relates to Banco Community College, a public tertiary educational institution in Guyana, as at December 31, 2019. DR CR $00 $00 Fees Income 4,575,622 Permanent Post 5,312,430 Allowance 856,670 Independent consultancy fees 655,600 Legal Cost 25,059 CARICOM Grant 1,540,000 Consultancy Cost 565,500 Non-Permanent Post 1,253,600 Seminars cost 500,000 Sponsorship (granted/received) 8,100 9,066,828 Receivables 468,050 Payables 182,840 20% loan 8,600 Books and Research Allowance 150,765 Plant and Machinery 3,000,000 250,000 Motor Vehicle 2,505,000 352,000 Building 12,300,000 756,000 Software 995,500 150,000 Other Incomes 211,430 Project Work Supervisory Allowance 48,500 Cash and Bank 294,233 Training and Workshop cost Bad debt provision (student fees) Work in Progress 104,000 4,940 8,251,735 Other Expenses 71,000 Withholding Tax 90,500 Accumulated Fund 11,205,270 Utilities Bills 560,053 Proceeds from Sale of Admission Forms…
As a tax consultant you receive on continuous basis inquiries and tax forms from your clients. Following are independent inquires that you have to check and reply back to your clients. For each enquiry below, Comment on whether the given calculations are correct or not by providing the necessary calculations. a-Government A decided to increase the income tax rate from 12% to 16% in year 2021. The total tax base for the year 2020 is $4,200,000. The government is expecting to collect $169,000 additional revenue in year 2021. Quarter of the individual taxpayers decided to quit. The government collected $ 169,000 additional tax revenue.