Prepare the appropriate journal entry for zangief corp

Assignment Help Financial Accounting
Reference no: EM132960755

At the end of its first year of operation, 2022, Zangief Corp., a company that specializes in storage and organization products, Monsanto Co. at the end of 2022, prepared a reconciliation between pretax financial income and taxable income as follows:

Pretax financial income $ 600,000
Estimated litigation expense 1,500,000
Installment sales (1,200,000)
Taxable income $ 900,000

The estimated litigation expense of $1,500,000 will be deductible in 2024 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $600,000 in each of the next two years. The installment accounts receivable are classified as $600,000 current and $600,000 noncurrent on the balance sheet. The income tax rate is 30% for all years.

Problem 1: Prepare the appropriate journal entry.

Reference no: EM132960755

Questions Cloud

Develop a communication strategy : You now need to communicate the strategic marketing objectives across the organisation in ways suited to levels of knowledge, experience and specific needs of p
What should be the balance in the dta account : Assuming all DTA situations are non-current, what should be the balance in the DTA account at 12/31/2022? What was Flake's financial income at 12/31/2022?
What is the amount reported as net deferred income taxes : What is the amount reported as net deferred income taxes on Sunflower's balance sheet at December 31, 2022? The facilities were sold in March 2023
What is collective agreement : What is collective agreement and to what extent have you worked with a collective agreement?
Prepare the appropriate journal entry for zangief corp : Prepare the appropriate journal entry. At the end of its first year of operation, 2022, Zangief Corp., a company that specializes in storage
Decision of the senior management : Mr Ahmed is an IT manager, he is appointed to evaluate the performance of employees of production department, because he is the only senior manager in the organ
Which is not an appropriate use of the cash flow statement : Which is not an appropriate use of the cash flow statement? Which of the transactions is not a financing activity of ABC Company?
Introduce a samsung electronics : Briefly discuss and introduce a Samsung Electronics (Divisions, legacy etc.) All references are needed.
What is peaceful resorts free cash flow : Company plans purchases of equipment of $83,000, cash dividends of $10,000, and loan repayments totaling $36,000. What is Peaceful Resorts' free cash flow?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Journalize the withdrawal of posada under each assumptions

Journalize the withdrawal of Posada under each of the following assumptions. If Lamar's ownership interest is 20% of total partnership capital, what were Terrell's cash investment and the bonus to the new partner?

  Record the estimated uncollectible accounts

Compact Electronics is the defendant in a patent infringement lawsuit brought by a competitor. Record the estimated uncollectible accounts

  What are the rules for the elimination entry for intra-group

What are the rules for the elimination entry for intra-group transactions relating to dividend declared by the parent company and dividend declared

  Determine the gross profit for the month

Assuming that the company uses the perpetual inventory system, determine the gross profit for the month of May using the LIFO cost method.

  Describe the underlying problem or conflict

Identify the core functions of each department, their strengths and weaknesses, and make recommendations for improvement, as appropriate and identify and describe the underlying problem or conflict

  What the amount of the loss that would reported as part

Skysong, Inc. Assuming a 32% tax rate, the amount of this loss that would reported as part of other comprehensive income would be

  What conclusions can be drawn on the status of the firm

What conclusions can be drawn on the status of the firm? What appropriate recommendations can be made for the Visa, Inc considering their financial analysis?

  Record acquisition of the building and the delivery truck

Record the acquisition of the building and the delivery truck. Compute and record the amortization expense on the patent for 2009 on a straightline basis.

  Foreign-currency transactions

Assume that circuit city stores completed the following foreign-currency transactions: On March 18, immediately after the purchase, and on April 20, immediately after the sale, which currencies did Circuit City want to strengthen? Which currencies di..

  Calculation of material cost variance labor variance and

calculation of material cost variance labor variance and over head variance.rax company has developed the following

  What is the initial measurement of the right-of-use asset

What is the initial measurement of the right-of-use asset at 1 January 20X6? What is the brought forward lease liability at 1 January 20X7?

  Record the transactions in the first year

Black sells his machine for the Green on the 1st of January for 9 000 UNITs. Record the transactions in the first year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd