Solution-Prepare the journal entry to record income taxes

Prepare the journal entry to record income taxes

Assignment Help Accounting Basics

Reference no: EM132803916

AUDIT OF LIABILITIES

Canon Corporation reported accounting income before taxes as follows: 2018, P150, 000; 2019, P176, 000. Taxable income for each year would have been the same as pretax accounting income except for the tax effects, arising for the first time in 2018, of P600 per month rent revenue collected in advance on October 1, 2018, for the six months ending March 31, 2019. Rent revenue is taxable in the year collected. The tax rate for 2018 and 2019 is 30%, and the year-end for both accounting and tax purposes is December 31. The rent revenue collected in advance is the only difference, and it is not repeated in October 2019.

Requirements:

Problem a. Is the difference a temporary or permanent difference? Explain.

Problem b. Calculate income tax payable for 2018 and 2019 and prepare the journal entry to record income taxes for 2018 and 2019.

Problem c. What amount of deferred income tax asset or liability would be reported on the 2016 and 2017 balance sheets?

Reference no: EM132803916

Questions Cloud

Describe two governmental external stakeholders : Describe two governmental external stakeholders that could be vital to your healthcare organization. What could they offer to your organization?

Prepare journal entries for love yourself company to record : Prepare journal entries for Love yourself company to record the debt settlement. Love Yourself owes P200, 000 plus P18, 000 of accrued interest to Primo Bank

Compute the loss on realization of the non-cash assets : After realizing P 37,000 cash from all non-cash assets and paying all liabilities amounting to P 12,000, Compute the loss on realization of the non-cash assets

Discuss morbidity and comorbidity of the disease : Discuss morbidity and comorbidity of the disease. Discuss the impact of the chronic illness and patient morbidity on overall health of the nation.

Prepare the journal entry to record income taxes : AUDIT OF LIABILITIES, Calculate income tax payable for 2018 and 2019 and prepare the journal entry to record income taxes for 2018 and 2019

Make a schedule of cost of goods manufactured in good form : Make a schedule of cost of goods manufactured in good form. Using data from your answers above as needed, make an income statement in good form

Give the income statement presentation of bad debts : Give the adjusting entry, the income statement presentation of bad debts and the balance sheet presentation for accounts receivable at its realizable value

Why is every cash payment not treated as an expense : In what methods of computing uncollectible accounts will the beginning allowance for bad debts be considered to arrive at the current provision?

When the auditors should use accounts payable confirmations : Jones decided to confirm supplier balances and mailed confirmation requests to 40 of WC's 1000 suppliers. When auditors should use account payable confirmations

User Account

All Pages

Prepare the journal entry to record income taxes

Reference no: EM132803916

Reference no: EM132803916

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT