The records for Smiley Company show the following for 2015: Revenue recorded for the year was $600,000. Cash collected in the year was $500,000.

The records for Smiley Company show the following for 2015: 

  • Revenue recorded for the year was $600,000.  Cash collected in the year was $500,000.  The tax rule is that it is only subject to tax as the cash is received. 
  • The company paid a fine of $4,500.  These fines are not deductible for tax purposes. 
  • Dividends received from an U.S. subsidiary was $10,000. 
  • Machinery was acquired in January for $400,000. Straight-line amortization over a 20-year life (no residual value) is used. For taxes, CCA is used and Bridge may deduct 30% for 2015.  (Ignore the ½ year rule for income tax). 
  • Dividends received from a Canadian corporation were $25,000. 
  • The estimated warranty liability related to 2015 sales was $20,000. Repair costs under warranties during 2015 were $14,000. The remainder will be incurred in 2016.  The tax rule is that warranty expenses are only deductible in the period that the actual warranty work is performed. 
  • Pretax financial income is $900,000. The tax rate is 35%.  December 31 year end. 
  • The company owns a warehouse that is normally vacant.  The company collected one year’s rent in advance, $24,000, on December 1, 2015 for use by another firm.  Tax rules require companies to record taxable income when cash is received. 

Required  

(1) Prepare a 3-column schedule that helps in preparing the income tax entry for 2015, or prepare another type of schedule that helps determine the tax entry for 2015.   

(2) Prepare the journal entries to record income taxes for 2015. 

(3) Prepare an income statement for 2015  starting from the ‘net income before tax’ line. 

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more