Allied Corp - Unadjusted Trial Balance as of 1 2 / 3 1 / 2 3 Item
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Question:
Allied Corp Unadjusted Trial Balance as of
Item Debit Credit
Cash
Prepaid Expense
Accounts Receivable
DTA
Machine
Accum Dep Machine
Income Tax Payable
DTL
Unearned Revenue
Note Payable
Common Stock
Additional Paid InCapital
Sales Revenue
Cost of Goods Sold
Sales and General Expense
Depreciation Expense
Officer's Life Insurance Prem
Interest on Municipal Bonds
Fine paid to the EPA
Income Tax Expense
Assumptions:
Allied determined on that a lawsuit settlement was probable. Payment of $ was received early in as expected.
Allied paid for lawn care in advance in November : $ for the and seasons. $ for $ for
The machine was purchased on This is the only fixed asset. Depreciation is straightline over four years.
Assume that Current Tax Law allows half of the value of the assets to be depreciated in the first year, with the balance to be depreciated straight line
Assignments:
What is the pretax income for the year
What is the taxable book income for the year
What is the taxable income for the year
What is the tax payable?
What are the tax accounting journal entries for journal entries needed to be made to correct the above balances
Classify the DTA DTLs created as Current Non Current for the Balance Sheet
Create a Income statement
What is the closing journal entry?
Create a balance sheet
The accountant left you a lovenote indicating that the DTA on the books is for a NOL carryforward.
Does his calculation seem accurate? Why or why not?
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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