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Exercise 13-6 Sarasota Corp., a public company following IFRS, began its 2017 fiscal year with a debit balance of $13,000 in its Income Tax Receivable
Exercise 13-6 Sarasota Corp., a public company following IFRS, began its 2017 fiscal year with a debit balance of $13,000 in its Income Tax Receivable account. During the year, Sarasota made quarterly income tax instalment payments of 7,520 each. In early June, a cheque was received from the Canada Revenue Agency for Sarasota's overpayment of 2016 taxes. The refunded amount was exactly as Sarasota had calculated it would be on its 2016 income tax return. On completion of the 2017 income tax return, it was determined that Sarasota's income tax based on 2017 income was $37,300 Prepare all journal entries that are necessary to record the 2017 transactions and events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Indicate how the income tax will be reported on Sarasota's December 31, 2017 statement of financial position The income tax payable will be shown asa Assume that the cheque from the CRA in early June is for $2,520, instead of $13,000. The difference arose because of calculation errors on Sarasota's 2016 tax return. How would you account for the difference of $10,480? where would it be shown on Sarasota's financial statements? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit June 1 Would any of your answers for parts above be different if ASPE had been followed
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