Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 18, Problem 1CPA
Paula has sales that qualify to be reported on the installment basis. In year 2, installment sales were $40,000 with a cost of $30,000. In year 3, installment sales were $50,000 with a cost of $25,000. Collections in year 2 were in the amount of $30,000. Collections in year 3 were $10,000 on the year 2 sales and $30,000 on the year 3 sales. How much deferred gross profit exists as of the end of year 2?
- a. $2,500
- b. $5,000
- c. $7,500
- d. $10,000
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
During December, Rainey Equipment made a $600,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5%. Prepare the appropriate journal entry.
A-One Mechanics Limited files GST returns monthly, and the GST rate is 5%. The figures in the following table represent the store's GST taxable sales and
purchases for which GST is paid for the indicated months of the year. As part of a year-to-date review, determine A-One Mechanics Limited's net GST
remittance and if they owe the government money or are entitled to a refund.
The GST remittance is a(n) refund
(Round to the nearest cent as needed.)
of $
Month
January
February
March
April
May
Purchases Sales
$ 158,114 $374,089
494,764 775,165
107,357 317,760
56,475 246,957
300,302 586,444
Carissa receivesacommission of 2.1%
on her monthly sales up to $4,800.
The rate then increases to 4.9% on the
next $5,800, and the top rate of 9.3%
applies to any further sales. During
July, Carissa's sales were $14,973 and
sales returns were $638.
Carissa receives a commission of 2.1% on her monthly sales up to $4,800. The rate then increases
to 4.9% on the next $5,800, and the top rate of 9.3% applies to any further sales. During July,
Carissa's sales were $14,973 and sales returns were $638.
a) Calculate Carissa's commission for July. $
b) Calculate her average hourly rate if she worked 27 hours during July. $
Add Work
a) Calculate Carissa's commission for
July.$
b) Calculate her average hourly rate if
she worked 27 hours during July.$
Chapter 18 Solutions
Individual Income Taxes
Ch. 18 - Prob. 1DQCh. 18 - Prob. 2DQCh. 18 - Prob. 3DQCh. 18 - Prob. 4DQCh. 18 - Prob. 5DQCh. 18 - Prob. 6DQCh. 18 - Prob. 7DQCh. 18 - LO.2 In 2019, the taxpayer became ineligible to...Ch. 18 - LO.2 Osprey Corporation, an accrual basis...Ch. 18 - Prob. 10DQ
Ch. 18 - Prob. 11DQCh. 18 - Prob. 12DQCh. 18 - LO.2 Emerald Motors is an automobile dealer. The...Ch. 18 - Prob. 14DQCh. 18 - Prob. 15DQCh. 18 - Prob. 16DQCh. 18 - Prob. 17DQCh. 18 - LO.4, 7 In December 2019, Carl Corporation sold...Ch. 18 - LO.2, 5 What are the similarities between the crop...Ch. 18 - Prob. 20DQCh. 18 - Prob. 21DQCh. 18 - Prob. 22DQCh. 18 - LO.6 Largo Company is an engineering consulting...Ch. 18 - Prob. 24DQCh. 18 - Prob. 25DQCh. 18 - Prob. 26DQCh. 18 - Prob. 27CECh. 18 - LO.2 Gaffney Corporation is a wholesale...Ch. 18 - Prob. 29CECh. 18 - LO.2 In 2019, Chaya Corporation, an accrual basis,...Ch. 18 - Prob. 31CECh. 18 - Prob. 32CECh. 18 - Prob. 33CECh. 18 - Prob. 34CECh. 18 - Prob. 35CECh. 18 - Prob. 36CECh. 18 - Prob. 37CECh. 18 - Prob. 38CECh. 18 - Prob. 39PCh. 18 - Prob. 40PCh. 18 - Prob. 41PCh. 18 - In 2018, Juan entered into a contract to write a...Ch. 18 - Prob. 43PCh. 18 - Compute Marys income or deductions for 2019 using...Ch. 18 - What accounting method (cash or accrual) would you...Ch. 18 - Blue Company, an architectural firm, has a...Ch. 18 - How do the all events and economic performance...Ch. 18 - Ross Company is a C corporation providing property...Ch. 18 - Prob. 49PCh. 18 - Prob. 50PCh. 18 - Floyd, a cash basis taxpayer, has received an...Ch. 18 - Prob. 52PCh. 18 - Prob. 53PCh. 18 - On June 30, 2019, Kelly sold property for 240,000...Ch. 18 - Prob. 55PCh. 18 - Prob. 56PCh. 18 - Prob. 57PCh. 18 - Prob. 58PCh. 18 - Prob. 59PCh. 18 - Ostrich Company makes gasoline storage tanks....Ch. 18 - Prob. 61PCh. 18 - Grouse Company is a furniture retailer whose...Ch. 18 - Lavender Manufacturing Company began business in...Ch. 18 - Silver Creek Ranch LLC is a small, family-owned...Ch. 18 - In 2019, Gail changed from the lower of cost or...Ch. 18 - At the end of 2020, Magenta Manufacturing Company...Ch. 18 - Prob. 67PCh. 18 - Prob. 68PCh. 18 - Prob. 69PCh. 18 - Prob. 1RPCh. 18 - Prob. 2RPCh. 18 - Prob. 3RPCh. 18 - Paula has sales that qualify to be reported on the...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Rosewood Company made a loan of $7,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2, respectively? Multiple Choice O O $420 in Year 1 and $0 in Year 2 $0 in Year 1 and $420 in Year 2 $105 in Year 1 and $315 in Year 2 $315 in Year 1 and $105 in Year 2arrow_forwardWhat are the accounting entries required to record sales on credit of $10,000, on which sales tax is applied at the rate of 20%?arrow_forwardRapoo Inc. sells gift certificates. One-half of the gift certificates outstanding on January 1 unredeemed as of yearend expired during the year. The Unearned Revenue from Gift Certificates account increased to P210,000 at yearend. The gross profit rate based on cost is 25%. Information on gift certificates is shown below: How much of the gift certificates sold during the year was redeemed? How much is the net income for the year arising from the gift certificates?arrow_forward
- Deli Restaurant provides 20% discount to senior citizens. It recorded the following during the year: Regular customer-net P 8M; Senior citizen customer-net P 1M; Cost of Services P 5M; and other deductible expenses P 2M. 1. The regular and special itemized deductions deductible from gross income is: 2. The taxable net income isarrow_forward13. On August 31, Home Depot sold materials for $6,000 cash that is subject to a 5% sales tax. Home Depot is required by law to collect and send sales taxes to the state. On December 31, Home Depot paid the taxes collected over to the IRS. What is the journal entry to record the cash sales?arrow_forwardDuring December, Rainey Equipment made a 676,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5%. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)arrow_forward
- During December, Far West Services makes a $3,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%. Record sales and sales tax payable.arrow_forwardM Co., a VAT taxpayer, had the following data, VAT not included, in each of: 1st month 2nd month 3rd month Sales P1,000,000 P2,000,000 P3,000,000 Purchases from VAT Suppliers P400,000 P800,000 P600,000 How much was the VAT payable for: The first month? The second month? At the end of the quarter?arrow_forwardTJ made a loan of $16,000 to one of the company's employees on April 1, year 1. The one year note carried a 6% rate of interest. What is the amount of interest revenue that Rosewood would report in Year 1? A. $720 B. $0 C. $240 D. $960arrow_forward
- At the end of the year, the A/R balance is $423,000 and the ADA has a balance of $10,000. We expect that 97% will be collected. What is the required allowance for doubtful accounts? *arrow_forwardMatty Kim, an accountant for Vernitron, earned $111,000 from January to June. In July, Matty earned $20,000. Assume a tax rate of 6.2% for Social Security on $118,500 and 1.45% on Medicare. How much are the July taxes for Social Security and Medicare?arrow_forwardA seller of goods has the following details of sales and collection during the month: Receivables, beginning P 500,000.00 Gross sales 700,000.00 Less: Collection 450,000.00 Receivables, end P 750,000.00 1. What is the amount subject to business tax? 2. Determine the amount subject to business tax if the taxpayer is a seller of services.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY