Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

EyeBeam Corporation reports the following pretax accounting (and taxable) income items during 2019: Ol this amount, revenues are $320,000 and expenses are $230,000. Required: 1.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
EyeBeam Corporation reports the following pretax accounting (and taxable) income items during 2019: "Ol this amount, revenues are $320,000 and expenses are $230,000. Required: 1. Prepare the joumal entry necessary to rocord the 2019 intraperiod income tax allocation in regard to the preceding information. Assume a tax rate of 15% on the first $40,000 of income and a rate of 30% on income in excess of $40,000. 2. Prepare EyeBeam's 2019 income statement Chart of Accounts CHART OF ACCOUNTS EyeBeam Corporation General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 882 Gain on Disposal of Discontinued Division 141 Inventory 152 Prepaid Insurance EXPENSES 181 Equipment 500 Cost of Goods Sold 198 Accumulated Depreciation 511 Insurance Expense 512 Utilities Expense LIABILITIES 521 Salaries Expense 211 Accounts Payable 532 Bad Debt Expense 231 Salaries Payable 540 Interest Expense T5n I Inarnad Revanua 5A1 Nanraciation Frnanea 152 Prepaid Insurance EXPENSES 181 Equipment 500 Cost of Goods Sold 198 Accumulated Depreciation 511 Insurance Expense 512 Utilities Expense LIABILITIES 521 Salaries Expense 211 Accounts Payable 532 Bad Debt Expense 231 Salaries Payable 540 Interest Expense 250 Unearned Revenue 541 Depreciation Expense 261 Income Taxes Payable 559 Miscellaneous Expenses 892 Loss from Operations of Discontinued Division EQUITY 910 Income Tax Expense 311 Common Stock 331 Retained Earnings Labels and Amount Descriptions Labels Results from discontinued operations Amount Descriptions Expenses Income from continuing operations Net income Pretax income from continuing operations Revenues 1. Prepare the journal entry necessary to record the 2019 intraperiod income tax allocation in regard to the 2019 intormation on December 31 . Assume a tax rate of 15% on the first $40,000 of income and a rate of 30% on income in excess of $40,000. Income Statement EYEBEAM CORPORATION Income Statement For Year Ended December 31, 2019 1 2 3 5 6 (Label) 7 1. 9 10

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Safety Auditing A Management Tool

Authors: Donald W. Kase

1st Edition

0471289035, 978-0471289036

More Books

Students also viewed these Accounting questions

Question

How does tax-exempt income differ from tax-deferred income?

Answered: 1 week ago

Question

L05 Differentiate between healthy eating and disordered eating.

Answered: 1 week ago