Professional Simulation In this simulation, you are asked to address questions related to the accounting for income
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Professional Simulation In this simulation, you are asked to address questions related to the accounting for income taxes. Prepare responses to all parts.
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KWW_Professional_Simulation Accounting for Income Taxes Time Remaining 2 hours 40 minutes calculator standards Directions Situation Journal Entry Financial Statements Resources Johnny Bravo Company began operations in 2015 and has provided the following information. 1. Pretax financial income for 2015 is $100,000. 2. The tax rate enacted for 2015 and future years is 40%. 3. Differences between the 2015 income statement and tax return are listed below. (a) Warranty expense accrued for financial reporting purposes amounts to $5,000. Warranty deductions per the tax return amount to $2,000. (b) Income on construction contracts using the percentage-of-completion method for book purposes amounts to $92,000. Income on construction contracts for tax purposes amounts to $62,000. (c) Depreciation of property, plant, and equipment for financial reporting purposes amounts to $60,000. Depreciation of these assets amounts to $80,000 for the tax return. (d) A $3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) Interest revenue earned on an investment in tax-exempt governmental bonds amounts to $1,400. 4. Taxable income is expected for the next few years. Directions Situation Journal Entry Financial Statements Resources Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2015. Directions Situation Journal Entry Financial Statements Resources Draft the income tax expense section of the income statement, beginning with "Income before income taxes."
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I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
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Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
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Related Book For
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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