Deferred income taxes are a type of long-term liability that result from using different accounting methods to calculate income taxes on the income statement and income tax liability on the income tax return
Indicate whether the statement is true or false
True
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During June 2019, Andy Company had the following transactions:
1. Sales of $185,000 ($142,000 on account, $43,000 for cash). 2. Collections on account, $128,000 3. Write-offs of uncollectible receivables, $1,900 4. Recovery of receivable previously written off, $600. Additional information: Ignore Cost of Goods Sold Andy uses the allowance method for uncollectibles. Andy estimates that 4.50% of its accounts receivable will be uncollectible. On June 1, 2019, the Accounts Receivable balance was $25,000 and the Allowance for Bad Debts had a normal account balance of $1,125. Requirements: a. Prepare the journal entries for the June 2019 transactions. Because the transactions represent a summary of events, use June 30 for all dates. Omit explanations. b. Prepare the June 30, 2019 adjusting journal entry. Omit explanation. c. What is the net realizable value of Accounts Receivable on June 30, 2019 (after the adjusting journal entry has been posted)? Show computations and label your work.
Use this information to answer the following question. Oct. 1 Inventory 200 units @ $12.00 6 Purchase 300 units @ $13.20 13 Purchase 100 units @ $14.40 20 Purchase 200 units @ $15.60 25 Purchase 40 units @ $16.80 Total sales 620 units A periodic inventory system is used. Using LIFO, the cost assigned to ending inventory is
A) $3,480. B) $8,112. C) $2,664. D) $8,928.
What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?
A) The Adjusted Trial Balance will show the net income (loss) as an additional account. B) Both will need to be in balance in order to continue with the end-of-period processing C) The Adjusted Trial Balance includes the postings of the adjustments for the period in the balance of the accounts. D) The Unadjusted Trial Balance will be used to record the adjustments for the period.
A company purchased equipment valued at $66,000. It traded in old equipment for a $9,000 trade-in allowance and the company paid $57,000 cash with the trade-in. The old equipment cost $44,000 and had accumulated depreciation of $36,000. This transaction has commercial substance. What is the recorded value of the new equipment?
A. $65,000. B. $9,000. C. $8,000. D. $66,000. E. $57,000.