LexCorp, an accrual basis corporation, has taxable income of $150,000 in the current year. Included in its determination of taxable income are the following transactions. ∙ It incurred a $65,000 capital loss from the sale of stock. It had no capital gains. It received $30,000 in dividends from Metallo, Inc. It owns 65%. ∙ It paid Federal income tax of $40,000. ∙ It incurred $18,000 in meal and entertainment expenses. ∙ LexCorp uses the LIFO method when accounting for inventory. This year, the company’s LIFO recapture amount increased by $4,000. ∙ It paid $5,000 in key man insurance premiums; cash surrender value increased by $1,500 . What is LexCorp's’s current E & P for the year?
On July 10, 2020, Waterway Ltd. sold GPS systems to retailers on account for a selling price of $780,000 (cost $624,000).
On July 10, 2020, Waterway Ltd. sold GPS systems to retailers on account for a selling price of $780,000 (cost $624,000). Waterway grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned systems to Waterway and were granted credits of $74,000. The company follows IFRS. Prepare Waterway’s journal entries to record the sale on July 10, 2020. Prepare Waterway’s journal entries to record the $74,000 of actual returns on October 10, 2020. ( Hint: Use Accounts Payable for the amount returned.) Answer.
Comments
Post a Comment