Question
Cash Dividends and Income Taxes During the year ended December 31, 20-2, Bebeto Company completed the following selected transactions: Apr. 15 Estimated that its 20-2
Cash Dividends and Income Taxes
During the year ended December 31, 20-2, Bebeto Company completed the following selected transactions:
| Apr. 15 | Estimated that its 20-2 income tax will be $27,640. Based on this estimate, it will make four quarterly payments of $6,910 each on April 15, June 15, September 15, and December 15. Made the first payment. |
| 25 | Declared a semiannual dividend of $0.35 per share on common stock to shareholders of record on May 10, payable May 20. Currently, 89,000 shares of $1 par common stock are outstanding. |
| May 20 | Paid the cash dividends. |
| June 15 | Made estimated tax payment of $6,910. |
| Sept. 15 | Made estimated tax payment of $6,910. |
| Oct. 25 | Declared semiannual dividend of $0.35 per share on common stock to shareholders of record on November 10, payable on November 20. |
| Nov. 20 | Paid the cash dividends. |
| Dec. 15 | Made estimated tax payment of $6,910. |
| 31 | Bebeto's actual 20-2 income tax is $32,310. This amount will be paid by March 15, 20-3. Made adjustment for the additional amount owed. |
| 31 | Net income for 20-2 was $109,400. Closed the income summary account. |
| 31 | Closed the cash dividends account. |
Required:
Prepare journal entries for the transactions.
| DATE | ACCOUNT TITLE | DOC. NO. | POST. REF. | DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|---|
| 1 | 20-2 Apr. 15 | fill in the blank 2 | fill in the blank 3 | 1 | |||
| 2 | fill in the blank 5 | fill in the blank 6 | 2 | ||||
| 3 | 3 | ||||||
| 4 | Apr. 25 | fill in the blank 8 | fill in the blank 9 | 4 | |||
| 5 | fill in the blank 11 | fill in the blank 12 | 5 | ||||
| 6 | 6 | ||||||
| 7 | May 20 | fill in the blank 14 | fill in the blank 15 | 7 | |||
| 8 | fill in the blank 17 | fill in the blank 18 | 8 | ||||
| 9 | 9 | ||||||
| 10 | June 15 | fill in the blank 20 | fill in the blank 21 | 10 | |||
| 11 | fill in the blank 23 | fill in the blank 24 | 11 | ||||
| 12 | 12 | ||||||
| 13 | Sept. 15 | fill in the blank 26 | fill in the blank 27 | 13 | |||
| 14 | fill in the blank 29 | fill in the blank 30 | 14 | ||||
| 15 | 15 | ||||||
| 16 | Oct. 25 | fill in the blank 32 | fill in the blank 33 | 16 | |||
| 17 | fill in the blank 35 | fill in the blank 36 | 17 | ||||
| 18 | 18 | ||||||
| 19 | Nov. 20 | fill in the blank 38 | fill in the blank 39 | 19 | |||
| 20 | fill in the blank 41 | fill in the blank 42 | 20 | ||||
| 21 | 21 | ||||||
| 22 | Dec. 15 | fill in the blank 44 | fill in the blank 45 | 22 | |||
| 23 | fill in the blank 47 | fill in the blank 48 | 23 | ||||
| 24 | 24 | ||||||
| 25 | Dec. 31 | fill in the blank 50 | fill in the blank 51 | 25 | |||
| 26 | fill in the blank 53 | fill in the blank 54 | 26 | ||||
| 27 | 27 | ||||||
| 28 | Dec. 31 | fill in the blank 56 | fill in the blank 57 | 28 | |||
| 29 | fill in the blank 59 | fill in the blank 60 | 29 | ||||
| 30 | 30 | ||||||
| 31 | Dec. 31 | fill in the blank 62 | fill in the blank 63 | 31 | |||
| 32 | fill in the blank 65 | fill in the blank 66 | 32 | ||||
| 33 | 33 |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
