Clausius Ltd. made four quarterly payments of $3,200 each to the CRA during 2011 as instalment payments on its estimated 2011 tax liability. At year end, Clausius’s controller completed the company’s 2011 tax return, which showed income taxes of $20,000 for its 2011 income. Prepare a summary entry for the quarterly tax instalments and the year-end entry to recognize the 2011 income taxes. Identify any year-end balance sheet amount that is related to income taxes and indicate where it would be reported.
Answer to relevant QuestionsThe following items are to be reported on a balance sheet. 1. Accrued vacation pay 2. Income tax instalments paid in excess of the income tax liability on the year’s income 3. Service warranties on appliance sales 4. A ...Winslow Corporation sold 150 colour laser copiers in 2011 for $4,000 each, including a one-year warranty. Maintenance on each machine during the warranty period aver ages $300. Instructions (a) Prepare entries to record the ...Timo operates a very busy roadside fruit and vegetable stand from May to October every year as part of his farming operation, which has a December 31 year end. Each time a customer purchases over $10 of produce, Timo gives ...On December 31, 2011, Zimmer Corporation has $7.9 million of short term debt in the form of notes payable that will be due periodically in 2012 to Provincial Bank. On January 28, 2012, Zimmer enters into a refinancing ...Hamilton Airlines is faced with two situations that need to be resolved before the financial statements for the company's year ended December 31, 2011, can be issued. 1. The airline is being sued for $4 million for an injury ...
Post your question