-
What amount of the total transaction price should be allocated to the tax preparation?
-
Record the journal entry required at the date of the contract. What is the impact on the liability section of the balance sheet. For an increase simply input the number. For a decrease input the number with a minus sign before it such as -100. If there is no impact input a zero (0).
-
What is the amount of total revenue that should be recognized in the current accounting period (12/31/X7)?
-
What is the TOTAL balance in ALL deferred revenue accounts at the end of the current accounting period (12/31/X7)? Consider all deferred revenue accounts for any/all performance obligations.
-
What is the amount of total revenue that should be recognized in the subsequent accounting period (12/31/X8)?
-
What amount of the total transaction price should be allocated to the tax preparation?
-
Record the journal entry required at the date of the contract. What is the impact on the liability section of the balance sheet. For an increase simply input the number. For a decrease input the number with a minus sign before it such as -100. If there is no impact input a zero (0).
-
What is the amount of total revenue that should be recognized in the current accounting period (12/31/X7)?
-
What is the TOTAL balance in ALL deferred revenue accounts at the end of the current accounting period (12/31/X7)? Consider all deferred revenue accounts for any/all performance obligations.
-
What is the amount of total revenue that should be recognized in the subsequent accounting period (12/31/X8)?
-
Related questions
Information for Entity A for the year ended December 31, 2018 ($ in millions):
| Income from continuing operations before tax | $160 |
| Temporary differences (all related to operating income): | |
| Accrued warranty expense in excess of expense included in operating income |
|
| Depreciation deducted on tax return in excess of depreciation expense |
|
| Permanent differences (all related to operating income): | |
| Nondeductible portion of entertainment expense | 8 |
| Interest received on municipal bonds | 3 |
| Balance in deferred tax asset account, January 1, 2018 | 1 |
| Balance in deferred tax liability account, January 1, 2018 | 2 |
| The applicable enacted tax rate for all periods is 40%. |
Show work.
A. Prepare the appropriate journal entry to record income taxes.
B. What is Entity A's net income?
C. Sometimes a temporary difference will produce future deductible amounts. Explain what is meant by future deductible amounts. Describe at least one situation that has this effect, for example, one example is when rent revenue is collected in advance from tenants (deferred rent revenue for financial accounting purposes) but will be recognized as the tenants occupy the property. You can think of others. How are future deductible amounts recognized in the financial statements? As between deferred tax assets and deferred tax liabilities, which would management prefer and why?
