The following account balances were taken from the 2021 adjusted trial balance of the Bowler Corporation: sales revenue, $325,000; cost of goods sold, $168,000; salaries expense, $45,000; rent expense, $20,000; depreciation expense, $30,000; and miscellaneous expense, $12,000. Prepare an income statement for 2021.
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- For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting Income of $992,000. Selected Information for 2021 from Fidelity's records follows: Interest income on municipal governmental bonds Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement Actual warranty expenditures in 2021 Fidelity's Income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $12,000 in Its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry. 2. What is Fidelity's 2021 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Pretax accounting income Permanent difference Determine…16. Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year ended November 30, 2020. Rent receivable – Nov. 30, 2020 is P1,060,000; Rent receivable – Nov. 30, 2019 is P800,000; and Uncollectible rent written off during the fiscal year is P30,000. Under accrual basis, what amount should be reported as rent revenue? a. P1,920,000 b. P2,240,000 c. P2,500,000 d. P1,980,000For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,020,000. Selected information for 2021 from Fidelity's records follows: Interest income on municipal governmental bonds Depreciation claimed on the 2021 tax return in excenn of depreciation on the income statement Carrying amount of depreciable anseta in excess of their tax basis at year-end Warranty expense reported on the income statement Actual warranty expenditures in 2021 $ 76,000 100,000 176,000 48,000 38,000 Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $19,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry. 2. What is Fidelity's 2021 net income?
- BCD Company had sales Revenue of $500,000 for the year 2019. Its cost of goods sold was $240,000, and its operating expenses were $50,000, and administrative expenses $ 25,000. Interest revenue for the year is $5,000 of which $2000 is unearned and interest expense was $12,000. BCD’s income tax rate is 25%. Required: Prepare a classified multiple-step income statement for the year for BCD Company.For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,036,000. Selected information for 2021 from Fidelity’s records follows: Interest income on municipal governmental bonds $ 92,000 Depreciation claimed on the 2021 tax return in excessof depreciation on the income statement 116,000 Carrying amount of depreciable assets in excessof their tax basis at year-end 208,000 Warranty expense reported on the income statement 56,000 Actual warranty expenditures in 2021 46,000 Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $23,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required:1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.2. What is Fidelity’s 2021 net income?For the year ended December 31, 2023, Bramble Ltd. reported income before income taxes of $90,000. In 2023, Bramble Ltd. paid $45,000 for rent; of this amount, $15,000 was expensed in 2023. The remaining $30,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $45,000 was deductible for tax purposes in 2023. The company paid $72,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Bramble Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $34,000, of which $26,000 was actual repairs for 2023 and the remaining $8,000 was estimated repairs to be completed in 2024. Meal and entertainment expenses totalled $22,000 in 2023, only half of which were deductible for income tax purposes. Depreciation expense for 2023 was $230,000. Capital Cost Allowance (CCA) claimed for the year was $252,000. Bramble was subject to a 20% income tax…
- For its fiscal year ending October 31, 2020, Antonio Corporation reports the following partial data. Income before income taxes $423.000Leni Company had the following transactions during the quarter ended March 31, 2021:• Loss on Sale- 900,000• Payment of fire insurance premium for calendar year 2021- 400,000• Payment of rent for 1 year- 1,200,000• Payment of property tax assessed for calendar year 2021- 500,000What total amount should be included in the determination of the net income or loss for the quarter ended March 31, 2021?For the year ended December 31, 2023, Bonita Ltd. reported income before income taxes of $100,000. In 2023, Bonita Ltd. paid $66,000 for rent; of this amount, $22,000 was expensed in 2023. The remaining $44,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $66,000 was deductible for tax purposes in 2023. The company paid $76,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Bonita Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $43,000, of which $27,000 was actual repairs for 2023 and the remaining $16,000 was estimated repairs to be completed in 2024. Meal and entertainment expenses totalled $21,000 in 2023, only half of which were deductible for income tax purposes. Depreciation expense for 2023 was $170,000. Capital Cost Allowance (CCA) claimed for the year was $200,000. Bonita was subject to a 20% income tax…
- The following information is available for Bramble Corporation for the year ended December 31, 2020: cost of goods sold $225,000, sales revenue $477,000, other revenues and gains $51,000, and operating expenses $73,000.Assuming a corporate tax rate of 25%, prepare an income statement for the company. $ $For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $977,000.Selected information for 2018 from Fidelity’s records follows:Interest income on municipal bonds $32,000Depreciation claimed on the 2018 tax return in excess of depreciation on the income statement 55,000Carrying amount of depreciable assets in excess of their tax basis at year-end 85,000Warranty expense reported on the income statement 26,000Actual warranty expenditures in 2018 16,000Fidelity’s income tax rate is 40%. At January 1, 2018, Fidelity’s records indicated balances of zero and $12,000in its deferred tax asset and deferred tax liability accounts, respectively.Required:1. Determine the amounts necessary to record income taxes for 2018, and prepare the appropriate journal entry.2. What is Fidelity’s 2018 net income?MMT Corporation reports the following income statement items ($ in millions) for the year ended December 31, 2024: sales revenue, $2,195; cost of goods sold, $1,430; selling expense, $210; general and administrative expense, $200; interest expense, $35; and gain on sale of investments, $100. Income tax expense has not yet been recorded. The income tax rate is 25%.