Calculate adjusted income taxes payable on December 31, 2021, for SINGH (Show the whole calculation). An excerpt
Question:
- Calculate adjusted income taxes payable on December 31, 2021, for SINGH (Show the whole calculation). An excerpt of certain SINGH Inc.’s accounts as of / for the year ended December 31, 2021 is presented below.
Amount
Accumulated other comprehensive LOSS, Jan 1, 2021
$ 400
Accrued liabilities
820
Cost of goods sold
10,000
Common shares (10,000 shares outstanding throughout the year)
1,200
Dividends declared – preferred shares
150
Dividends declared – common shares
450
Gain on sale of equipment
82
General & admin expenses
1,520
Expense error from 2020 (depreciation expense was understated in 2020 by this amount)
620
Loss on write-down of assets of discontinued operation
800
Income tax payable
0
Interest expense
105
Interest revenue
80
Income from the operations of discontinued operations
200
Sales and marketing expenses
800
Preferred shares (400 preferred shares outstanding throughout the year)
640
Retained earnings, Jan 1, 2021
1,400
Sales revenue
17,500
Unrealized gain on investments – OCI (other comprehensive. Income)
152
NOTE: All adjusting entries have been prepared EXCEPT for the 2021 income tax entries.(i.e.. All numbers above are before tax.) SINGH is subject to a 25% income tax rate.
SINGH follows IFRS.
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas