Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes areaccrued each month for 28% of the current month's net income. The income taxes are paid in the first month of each quarter for theamount accrued for the prior quarter. The following information is available for the fourth quarter of the year just ended. When taxcomputations are completed on January 20 of the following year, Nishi determines that the quarter's Income Taxes Payable accountbalance should be $29,446 on December 31 of the year just ended (its unadjusted balance is $24,346).October net incomeNovember net income$ 31,00020,15035, 800December net income1. Determine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in the IncomeTaxes Payable account.2. Prepare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the later January 20payment of the fourth-quarter taxes.Complete this question by entering your answers In the tabs below.Required 1Required 2Determine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in theIncome Taxes Payable account. (Round intermediate calculations to the nearest whole dollar amount.)Amount of accounting adjustment

Companies estimates the uncertain amount for the benefits of employees like pension, vacation pay,…

As part of its accounting process, estimated incon ed each month for 28% of the current month's net income. The income taxes are paid in the first month of each qu nt accrued for the prior quarter. The following information is available for the fourth quarter of the year just ended. utations are completed on January 20 of the following year, Nishi determines that the quarter's Income Taxes Pay ce should be $29,446 on December 31 of the year just ended (its unadjusted balance is $24,346). ober net income ember net income ember net income $ 31,000 20, 150 35, 800 ermine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in t Payable account. pare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the la nt of the fourth-quarter taxes. nplete this question by entering your answers In the tabs below.

As part of its accounting process, estimated incon ed each month for 28% of the current month's net income. The income taxes are paid in the first month of each qu nt accrued for the prior quarter. The following information is available for the fourth quarter of the year just ended. utations are completed on January 20 of the following year, Nishi determines that the quarter's Income Taxes Pay ce should be $29,446 on December 31 of the year just ended (its unadjusted balance is $24,346). ober net income ember net income ember net income $ 31,000 20, 150 35, 800 ermine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in t Payable account. pare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the la nt of the fourth-quarter taxes. nplete this question by entering your answers In the tabs below.

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 3RE: Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that...

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Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that it will owe 17,400 in property taxes for the year. On June 1, its property taxes are assessed at 17,000, which it pays immediately. Prepare the related journal entries for April 1, May 1, and June 1. Then compute the monthly property tax expense that Cee Co. would record during June through March.
Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 30% of the current month’s net income. The income taxes are paid in the first month of each quarter for the amount accrued for the prior quarter. The following infor-mation is available for the fourth quarter of the year just ended. When tax computations are completed on January 20 of the following year, Nishi determines that the quarter’s Income Taxes Payable account balance should be $28,300 on December 31 of the year just ended (its unadjusted balance is $24,690). October net income . . . . . . . $28,600 November net income . . . . $19,100 December net income . . . . . $34,600 1. Determine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in the Income Taxes Payable account. 2. Prepare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and…
Joplin Laminating Corporation reported income before income taxes during the first three quarters, and management’s estimates of the annual effective tax rate at the end of each quarter as shown below: Required: Determine the income tax expense to be reported in the income statement in each of the three quarterly reports.
Trombone deducts employment taxes from its employees' wages on a monthly basis and pays these to the local taxation authorities in the following month. At the year-end the financial statements will contain an accrual for income tax payable on employment income. You will be in charge of auditing this accrual. Question: Describe the audit procedures required in respect of the year-end accrual for tax payable on employment income.
Fanta Ltd has paid the following PAYG tax installments for the year ended 30 June: September quarter $11,000 December quarter $11,000 March quarter $11,000 June quarter $11,000 Total $44,000 Taxable income for the year ended 30 June, was $168,000. Company tax rate is 30%. Required: Prepare general journal entries to record the company’s income tax instalments and final payment.
Peterson Company billed its customers a total of $840,000 for the month of November. The total includes a 5% state sales tax. (a) Determine the proper amount of revenue and sales taxes to report for the month. (b) Prepare the general journal entry to record the revenue and related liabilities for the month.
Cee & Co.’s fiscal year begins April 1. At the beginning of its fiscal year, Cee & Co. estimates that it will owe $17,400 in property taxes for the year. On June 1, its property taxes are assessed at $17,000, which it pays immediately. Required: 1. Prepare the related journal entries for April 1, May 1, and June 1. 2. Then compute the monthly property tax expense that Cee & Co. would record during July through March.
The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. Cash sales for November Year 1 were $65,000, plus sales tax of 10 percent. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. Cash sales for December Year 1 were $79,500, plus sales tax of 10 percent. Requireda. Record the preceding transactions in general journal form.b. Show the effect of the preceding transactions on a horizontal statements model like the one shown next.c. What was the total amount of sales tax paid in Year 1?d. What was the total amount of sales tax collected in Year 1?e. What amount of sales tax expense will be reported on the Year 1 income statement?
The following selected transactions apply to Topeca Supply for November and December, Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. Cash sales for November, Year 1 were $64,500 plus sales tax of 9 percent. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. Cash sales for December, Year 1 were $80,000 plus sales tax of 9 percent. On which financial statement will the sales tax liability appear?
The following selected transactions apply to Topeca Supply for November and December, Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. Cash sales for November, Year 1 were $64,500 plus sales tax of 9 percent. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. Cash sales for December, Year 1 were $80,000 plus sales tax of 9 percent. Show the effect of the above transactions on a statements model like the one shown as follows. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. What was the total amount of sales tax paid in Year 1?
The following selected transactions apply to Topeca Supply for November and December, Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. Cash sales for November, Year 1 were $64,500 plus sales tax of 9 percent. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. Cash sales for December, Year 1 were $80,000 plus sales tax of 9 percent. What was the total amount of sales tax collected in Year 1? What is the amount of the sales tax liability as of December 31, Year 1?
The following selected transactions apply to topeca supply for november and december year 1. november was the first month of operations. sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. cash sales for november year 1 were 64,500 plus sales tax of 8 percent. 2. Topeca supply paid the november sales tax to the state agency on december 10, year 1. 3. cash sales for december year 1 were 80,500 plus sales tax of 8 percent. a. show the effect of the above transactions on a statements model.