eBook Print On 12 y correct Mark 17.00 out of 38.00 Prag Question pport Accounting for personal income taxes Satalisa City, which operates on a calendar year basis, obtains 40 percent of its revenues from personal income taxes. Employers are required to withhold taxes from the Barnings of city residents and remit them to the city monthly City residents must also make payments, if necessary, with quarterly tax estimates. No later than April 15 of the following year, residents must file tax returns, remitting any additional taxes due to the city or claiming refunds of overpayments. Saralisar's accounting policies call for recognizing tanes obtained from income eamed during a particular calendar year provided the taxes are received during the year on before oril 30 of the following year, income taxes received after April 30 are recognized as revenues of the year in which received. Prepare journal entries to record the following transactions and events 1. When it prepared its 2018 financial statements. Sarallsa had deferred recognition of $20,000 of 2018 personal income taxes estimated to be received after April 30, 2019. After April 30, 2019, Saralisa actually receives only $16.000 cash. Saralisa's comptroller believes no additional cash will be received from the 2018 taxes. (Hint Remember that based on the journal entry to record the deferral. Saralia's books at the start of 2010 show Income taxes receivable and Deferred Income tax revenues of $20.000) 1 2. During 2010 Sarana receives $2.250.000 from personal income taxes withheld by employers during the year and estimates filed by taxpayers during the year, By 2020. before the financial statements for 2020 are prepared. Soralis receive 100.000 from employers and taxpayers based on tapayer carrones cunin the latter part of 2019 4. Saritas comptroller estimates that the city will receive 555.000 with the 2019 tax returns (due April 15, 20201 as well as requests for refunds totaling $275.000. The comptroller akoestimates that 528.000 will tickle in after April 30 with tax returns filed by late files. Description Debit 1 Revere comes Revenue-income taxes Toner 2018 Onofrecevable income tax refundspel Ret Credit Route 0 0X b. X 4) 07 3. In January 2020, before the financial statements for 2020 are prepared, Saralisa receives $400,000 from employ the latter part of 2019. 4. Saralisa's comptroller estimates that the city will receive $55,000 with the 2019 tax returns (due April 15, 2020), comptroller also estimates that $28,000 will trickle in after April 30 with tax returns filed by late filers. Ref Description Debit Credit 1a. Revenue - income taxes OX Revenue - income taxes 0 To reverse 2018 recognition of receivable. Income tax refunds payable 0 Revenue - Income taxes To recognize revenue payments from late filers. 2 Income taxes receivable 0 Revenue-income taxese 0 0 X 3 Income tax refunds payable + X 0 Cash e 4aRevenues - income taxes Income taxes receivable Cash X To record estimated receipts and refunds by 4/15 filers b. Cash X Deferred income tax revenues e To record estimated receipts by later filers X 0 x OX X 0 OX 0 0 0 OX 0 x > OX 07 OX eBook Print On 12 y correct Mark 17.00 out of 38.00 Prag Question pport Accounting for personal income taxes Satalisa City, which operates on a calendar year basis, obtains 40 percent of its revenues from personal income taxes. Employers are required to withhold taxes from the Barnings of city residents and remit them to the city monthly City residents must also make payments, if necessary, with quarterly tax estimates. No later than April 15 of the following year, residents must file tax returns, remitting any additional taxes due to the city or claiming refunds of overpayments. Saralisar's accounting policies call for recognizing tanes obtained from income eamed during a particular calendar year provided the taxes are received during the year on before oril 30 of the following year, income taxes received after April 30 are recognized as revenues of the year in which received. Prepare journal entries to record the following transactions and events 1. When it prepared its 2018 financial statements. Sarallsa had deferred recognition of $20,000 of 2018 personal income taxes estimated to be received after April 30, 2019. After April 30, 2019, Saralisa actually receives only $16.000 cash. Saralisa's comptroller believes no additional cash will be received from the 2018 taxes. (Hint Remember that based on the journal entry to record the deferral. Saralia's books at the start of 2010 show Income taxes receivable and Deferred Income tax revenues of $20.000) 1 2. During 2010 Sarana receives $2.250.000 from personal income taxes withheld by employers during the year and estimates filed by taxpayers during the year, By 2020. before the financial statements for 2020 are prepared. Soralis receive 100.000 from employers and taxpayers based on tapayer carrones cunin the latter part of 2019 4. Saritas comptroller estimates that the city will receive 555.000 with the 2019 tax returns (due April 15, 20201 as well as requests for refunds totaling $275.000. The comptroller akoestimates that 528.000 will tickle in after April 30 with tax returns filed by late files. Description Debit 1 Revere comes Revenue-income taxes Toner 2018 Onofrecevable income tax refundspel Ret Credit Route 0 0X b. X 4) 07 3. In January 2020, before the financial statements for 2020 are prepared, Saralisa receives $400,000 from employ the latter part of 2019. 4. Saralisa's comptroller estimates that the city will receive $55,000 with the 2019 tax returns (due April 15, 2020), comptroller also estimates that $28,000 will trickle in after April 30 with tax returns filed by late filers. Ref Description Debit Credit 1a. Revenue - income taxes OX Revenue - income taxes 0 To reverse 2018 recognition of receivable. Income tax refunds payable 0 Revenue - Income taxes To recognize revenue payments from late filers. 2 Income taxes receivable 0 Revenue-income taxese 0 0 X 3 Income tax refunds payable + X 0 Cash e 4aRevenues - income taxes Income taxes receivable Cash X To record estimated receipts and refunds by 4/15 filers b. Cash X Deferred income tax revenues e To record estimated receipts by later filers X 0 x OX X 0 OX 0 0 0 OX 0 x > OX 07 OX