The following table shows the balances from various accounts in the adjusted trial balance for UniLink Telecom
Question:
The following table shows the balances from various accounts in the adjusted trial balance for UniLink Telecom Corp. as of December 31, 2020:
Required
1. Assuming that the company?s income tax rate is 30%, what are the tax effects and after-tax measures of the items labelled as pre-tax?
2. Prepare a multi-step income statement for the year ended December 31, 2020.
Debit Credit $ 28,800 a. Interest income $ 86,400 b. Depreciation expense, equipment. c. Loss on sale of office equipment d. Accounts payable. e. Other operating expenses. f. Accumulated depreciation, equipment. g. Gain from settling a lawsuit. 59,400 100,800 234,000 176,400 100,800 h. Cumulative effect of change in accounting principle (pre-tax). 151,200 i. Accumulated depreciation, buildings. j. Loss from operating a discontinued operation (pre-tax). 392,400 46,800 k. Gain on expropriation of land and building by government. 68,400 I. Sales 2,329,200 m. Depreciation expense, buildings. 129,600 n. Correction of overstatement of prior year's sales (pre-tax). o. Gain on sale of discontinued operation's assets (pre-tax). p. Loss from settling a lawsuit. q. Income taxes expense. 36,000 79,200 57,600 Cost of goods sold 1,170,000 r.
Step by Step Answer:
Part 1 Effect of income taxes losses in parentheses 30 AfterTax Pretax Tax Effect Measure h Cumulati...View the full answer
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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