p9 On December 31, 2021, Utilities expense for the year as appropriately reported in the statementof comprehensive income of Kwek-Kwek Inc. is P117,000. The statement of financial position as ofDecember 31, 2020 reported accrued utilities expense of P9,000. Total payments for utilitiesduring 2021 were P108,000 which were fully charged to Utilities expense. The companyappropriately prepared a reversing entry on January 1, 2021.Which of the following is the correct adjusting entry related to the utilities in 2021? *O Dr. Utilities Expense- P9,000; Cr. Utilities Payable- P9,000O Dr. Utilities Payable- P9,000; Cr. Utilities Expense- P9,000O Dr. Utilities Expense- P18,000; Cr. Utilities Payable- P18,000O Dr. Utilities Payable- P18,000; Cr. Utilities Expense- P18,000

Total payments of P108,000 includes the payment of P9,000 that was due for 2020. So amount paid for…

Answered: On December 31, 2021, Utilities expense…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...

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Assume that Tyre Distributors Inc. prepared the following journal entry on December 31, 2021 relating to a 2021 timing (temporary) difference: DR Income tax expense- future $29,000 CR Future income tax liability $29,000 They provide you with the following additional information for 2021: - the tax rate was 25% in 2021 and prior years and the tax rate enacted in 2021 for 2022 and future years is 20%; - accounting income in 2021 was $700,000; - on December 31, 2020 the deferred tax liability was $100,000. The total tax expense (future plus current tax) for 2021 will be Select one: a. $169,000. b. $140,000. c. $135,000. d. $147,750. e. None of the above. Assume for this question only that Tyre Distributors Inc. had current income tax payable in 2021 of $80,000 and there was also a permanent difference in computing taxable income for disallowed meals and entertainment expenses of $32,000.…
16. Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year ended November 30, 2020. Rent receivable – Nov. 30, 2020 is P1,060,000; Rent receivable – Nov. 30, 2019 is P800,000; and Uncollectible rent written off during the fiscal year is P30,000. Under accrual basis, what amount should be reported as rent revenue? a. P1,920,000 b. P2,240,000 c. P2,500,000 d. P1,980,000
Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year ended November 30, 2020. Rent receivable – Nov. 30, 2020 is P1,060,000; Rent receivable – Nov. 30, 2019 is P800,000; and Uncollectible rent written off during the fiscal year is P30,000. Under accrual basis, what amount should be reported as rent revenue? P2,240,000 P1,920,000 P1,980,000 P2,500,000
ABC Company is preparing its December 31, 2019 financial statements. The financial statements are authorized for issue on March 31, 2020. Income before 25% income tax but after consideration of these items amounted to P 5.4M. The following occurred: March 15, 2020 - dividend of 3M was declared and a contractual profit share payment of 90OT was made, based on the profit for the year ended 12/31/2019. February 1, 2020 - customer settled to the entity its due amounting to P 550,000 for the past 5 months. Allowance worth P 60T was made against this account in the financial statements. March 20, 2020 - manufacturing plant was partially destroyed by fire last December 20, 2019. Estimate of a professional regarding the damage was received on the given date which amounted to P 950T. What total before- tax amount should be recognized in profit or loss for 2019 to reflect adjusting events after the reporting period? some other amount 1,670,000 1,750,000 1,790,000
ABC Company reported pretax financial income of 7,000,000 for the year ended December 31,2021. The taxable income was 6,500,000. The differences is due to accelerated depreciation for income tax purposes. The income tax rate is 25% and ABC Company made estimated tax payment of 500,000 during the current year. REQUIREMENTS: a. Prepare journal entries for 2021. b. Compute the total income tax expenses for 2021
T&T restaurant, non-VAT registered, had gross receipts during the year which amount to P2,500,000. If the year of operation is 2019, * Subject to Output VAT of P300,000 Subject to Output VAT of P267,854 Subject to Percentage tax of P75,000 Subject to Percentage on the P2,000,000
Required: Prepare an accrual basis income statement for 2021. (Ignore income taxes.) STANLEY AND JONES LAWN SERVICE COMPANY Income Statement For the Year Ended December 31, 2021 Service revenue 410,000 %24
What is the corrected 2019 Net Income? * Bee Company's net income for 2018, 2019, and 2020 were P100,000; P145,000; and P185,000 respectively. The following items were not properly handled: a. Rent of P6,500 for 2021 was received from a lessee on December 31, 2020, and was recorded as outright income in 2020. b. Salaries payable at the end of the following years were omitted: December 31, 2017 2,500 December 31, 2018 5,500 December 31, 2019 7,500 December 31, 2020 4,700 c+ The following unused office supplies were omitted in the accounting records: December 31, 2017 3,500 6,500 December 31, 2018 December 31, 2019 December 31, 2020 3,700 7,100 O 123,700 O 140,200 146,700 159,300 O none of the them
Upright Company reported a retained earnings balance of P4,000,000 on January 1,2021. In August 2021, the entity determined that insurance premiums of P600,000 for the three- year period beginning January 1, 2020, had been paid and fully expensed in 2020. The income tax rate is 30%. What amount should be reported as corrected retained earnings on January 1, 2021?
Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.
In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of S4,500 for services to be performed in January 2020. Swanstrom also receives the December utility bill for S600 but does not pay this bill until 2020. For 2019, under the accrual basis of accounting, Swanstrom would recognize: a. $8,000 of revenue and $600 of expense. b. $8,000 of revenue and $0 of expense. c. $3,500 of revenue and $600 of expense. d. $3,500 Of revenue and $0 of expense.

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