For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31: a. Anchor's general ledger shows a credit balance of $125,000 in Long-Term Notes Payable. Of the amount, a $25,000 installment becomes due on June 30 of the following year. b. Anchor estimates its unpaid income tax liability for the current year is $34,000; it plans to pay this amount in March of the following year. c. On December 31, Anchor received a $15,000 invoice for merchandise shipped on December 28. The merchandise has not yet been received. The merchandise was shipped F.O.B. shipping point. d. During the year, Anchor collected $10,500 of state sales tax. At year-end, it has not yet remitted $1,400 of these taxes to the state department of revenue. e. On December 31, Anchor's bank approved a $5,000, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following year. Current Liability Long-Term Liability a. Balance in Long-Term Notes Payable $ 0 $ b. Unpaid income tax liability c. Merchandise shipped F.O.B. Shipping Point d. Sales tax collected e. Bank loan o Oo o o

For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31: a. Anchor's general ledger shows a credit balance of $125,000 in Long-Term Notes Payable. Of the amount, a $25,000 installment becomes due on June 30 of the following year. b. Anchor estimates its unpaid income tax liability for the current year is $34,000; it plans to pay this amount in March of the following year. c. On December 31, Anchor received a $15,000 invoice for merchandise shipped on December 28. The merchandise has not yet been received. The merchandise was shipped F.O.B. shipping point. d. During the year, Anchor collected $10,500 of state sales tax. At year-end, it has not yet remitted $1,400 of these taxes to the state department of revenue. e. On December 31, Anchor's bank approved a $5,000, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following year. Current Liability Long-Term Liability a. Balance in Long-Term Notes Payable $ 0 $ b. Unpaid income tax liability c. Merchandise shipped F.O.B. Shipping Point d. Sales tax collected e. Bank loan o Oo o o

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 3RE: In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During...

See similar textbooks

Similar questions

In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31:a. Anchor’s general ledger shows a credit balance of $125,000 in Long-Term Notes Payable. Of the amount, a $25,000installment becomes due on June 30 of the following year.b. Anchor estimates its unpaid income tax liability for the current year is $34,000; it plans to pay this amount in March of the following year.c. On December 31, Anchor received a $15,000 invoice for merchandise shipped on December 28. The merchandise has not yet been received.The merchandise was shipped F.O.B. shipping point.d. During the year, Anchor collected $10,500 of state sales tax. At year-end, it has not yet remitted $1,400 of these taxes to the state department of revenue.e. On December 31, Anchor’s bank approved a $5,000, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following year.…
Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31:a. Anchor’s general ledger shows a credit balance of $150,000 in Long-Term Notes Payable. Of the amount, a $30,000installment becomes due on June 30 of the following year.b. Anchor estimates its unpaid income tax liability for the current year is $40,800; it plans to pay this amount in March of the following year.c. On December 31, Anchor received a $18,000 invoice for merchandise shipped on December 28. The merchandise has not yet been received.The merchandise was shipped F.O.B. shipping point.d. During the year, Anchor collected $12,600 of state sales tax. At year-end, it has not yet remitted $1,680 of these taxes to the state department of revenue.e. On December 31, Anchor’s bank approved a $6,000, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following year.…
Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31: a. Anchor's general ledger shows a credit balance of $125,000 in Long-Term Notes Payable. Of the amount, a $25,000 installment becomes due on June 30 of the following year. b. Anchor estimates its unpaid income tax liability for the current year is $34,000; it plans to pay this amount in March of the following year. c. On December 31, Anchor received a $15,000 invoice for merchandise shipped on December 28. The merchandise has not yet been received. The merchandise was shipped F.O.B. shipping point. d. During the year, Anchor collected $10,500 of state sales tax. At year-end, it has not yet remitted $1,400 of these taxes to the state department of revenue. e. On December 31, Anchor's bank approved a $5,000, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following…
Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 5% View transaction list Additional information: a. $11,800 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $136,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $150,000 given similar cases in the industry. c. During December, Mackenzie had sales of $720,000. 5% of sales typically require warranty work equal to 25% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $112,500 of the Unearned Revenues remain unearned at December 31, 2023. f. The 120-day note payable was dated November 15, 2023. No 1 $ 6,560…
Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 6% $ 6,590 133,100 480,000 120-day note payable, 5% Unearned revenues Warranty expense $ 93,000 309,000 7,700 Additional information: a. $12,100 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $139,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $153,000 given similar cases in the industry. c. During December, Mackenzie had sales of $723,000. 6% of sales typically require warranty work equal to 15% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $112,800 of the Unearned Revenues remain unearned at…
Mackenzie Corp. is preparing the December 31, 2020, year-end financial statements, Following are selected unadjusted account balances: Estimated warranty liability Income tax expense $ 6,510 120 day note payable, 5% Unearned revenues S 85, 000 301,000 6,900 124, 300 Mortgage payable, 6% 456,000 Narranty expense Additional information: a. $11.300 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $131,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $145,000 given similar cases in the industry. c. During December, Mackenzie had sales of $715,000. 4% of sales typically require warranty work equal to 25% of the sales amount d. Mortgage payments are made on the first day of each month. e. $112,000 of the Unearned Revenues remain unearned at…
DALLAS Corp. is preparing the December 31, 2020, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability $ 6,490 120-day note payable, 3% $ 83,000 Income tax expense 122,100 Unearned revenues 299,000 Mortgage payable, 4% 450,000 Warranty expense 6,700 Additional information: a. $11,100 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $129,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $143,000 given similar cases in the industry. c. During December, DALLAS had sales of $713,000. 4% of sales typically require warranty work equal to 20% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $111,800 of the Unearned Revenues remain unearned at December…
On June 1, Davis Inc. issued an $81,200, 8%, 120-day note payable to Garcia Company Assume that the fiscal year of Garcia ends June 30. Using a 360-day year in your calculations, what is the amount of interest revenue recognized by Garcia in the following year? When required, round your answer to the nearest dollar.
On July 8, Jones Inc. issued an $70,600, 8%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends on July 31. Using the 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year? Round your answer to the nearest whole dollar.
On June 1, Davis Inc. issued an $89,300, 8%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30. Using a 360-day year, what is the amount of interest revenue recognized by Garcia in the following year? When required, round your answer to the nearest dollar. a. $1,806 Ob. $7,144 O c. $595 Od. $1,191 B
On June 30, 2024, Concord Ltd's general ledger contained the following liability accounts: Accounts payable CPP payable $45,500 3,180 El payable 1,152 Sales tax payable 5,900 Employee income tax payable 5,530 The following selected transactions occurred during the month of July: July 1 2 6 Issued a three-month, 6% note payable in exchange for an account payable in the amount of $13,000. Interest is due at maturity. Provided services for customers worth $18,000 plus HST of 13%. The company received payment in full for services and HST. Sold inventory for cash totalling $35,030 that also includes 13% HST. The cost of goods sold was $26,000. Concord uses a perpetual inventory system. 10 Remitted $5,900 HST pertaining to sales tax collected in June. 15 Remitted $9,862 to the government for amounts owing from the June payroll for employee payroll deductions of $7,600 (CPP $1,590, El $480, and employee income tax $5,530) and for employee benefits of $2,262 (CPP $1,590 and El $672). 24 Paid…