Hi, there are two questions I have regarding two specific journal entries.
1st. How do I calculate Annual FYE SFVA and Annual FYE Unrealized Gain (highlighted in yellow on fourth image). It is not simply the quarter balances added together as the example problem given to us didn't do that. It probably draws from the financial statements. The 301.28 number is from subtracting Annual FYE total assets - Annual FYE CS. Though I am not sure if that is right.
2nd. Highlighted in red in the fourth picture is the Annual FYE balance of Deferred Tax Liability. I am having trouble finding out why that balance and the balance from the T-account (image 5) do not match since theoretically they should. If you can please find the error whether in the journal entries or the financial statements itself.
Thanks for the help.
Financial Statements Initial Position End Qtr 1 End Qtr 2 End Qtr 3 End Otr 4 Annual FYE 772.00 407.09 Income Statement Revs Oper Exp Unrealized g/(1) EBT Tax Expense Net Income Other Comp Income (OCI)-Net of tax Comprehensive Income (CI)-Net of Tax $ $ $ $ $ $ $ $ Purchase Stock 1/1/19 $ $ $ $ $ $ $ $ $ 189.00 $ $ 103.95 $ $ $ 85.05 $ $ 17.86 $ $ 67.19 $ $ (15.80) $ $ 51.39 $ 191.00 $ 99.32 $ $ 91.68 $ 19.25 $ 72.43 $ 22.12 $ 94.55 $ 195.00 $ 103.35 $ $ 91.65 $ 19.25 $ 72.40 $ (12.64) $ 59.76 $ 197.00 $ 100.47 $ $ 96.53 $ 20.27$ 76.26 $ 16.59 $ 92.85$ 364.91 76.63 288.28 10.27 298.55 91.65 364.91 Calculation of Taxable income EBT Unrealized g/(0) Taxable Income IRS Taxes $ $ $ $ iluun $ $ $ $ 85.05 $ $ 85.05 5 17.86 $ 91.68 $ $ 91.68 $ 19.25 $ $ $ $ $ 96.53 $ $ 96.53 $ 20.27 $ 91.65 19.25 364.91 76.63 Statement of Retained Earnings RE_BOP Net Income Dividends RE_EOP $ $ $ $ $ $ $ $ $ $ $ 67.19 $ $ 288.28 ului 67.19 $ 72.43 $ $ 139.62 S 139.62 $ 72.40 $ $ 212.02 $ 212.02 $ 76.26 $ $ 288.28 $ $ $ 67.19 $ 288.28 Calculation of AOCI AOCI_BOP Comprehnsive Income (CI) AOCI-EOP $ $ $ $ $ $ $ (15.80) $ (15.80) $ (15.80) $ 22.12 $ 6.32 $ 6.32 $ (12.64) $ (6.32) $ (6.32) 16.59 10.27 $ $ 10.27 10.27 $ is $ Balance Sheet Purchase Initial Stock End Qtr 1 End Qtr 2 End Qtr 3 End Qtr 4 Annual FYE Position 1/1/19 198.00 $ 101.00 $ 164.19 $ 236.62 $ 309.02 $ 385.28 $ 385.28 Assets Cash $ 101.00 Stock-HC SFVA-Bop Unrealized g/(U) SFVA-EOP Asset-FV $ $ $ $ $ 101.00 $ 101.00 $ $ $ $ (20.00) $ $ $ (20.00) $ 101.00 $ 81.00 101.00 $ (20.00) $ 28.00 $ 8.00 $ 109.00 $ 101.00 $ 8.00 $ (16.00) $ (8.00) $ 93.00 $ 101.00 $ (8.00) $ 21.00 $ 13.00 $ 114.00 $ 13.00 13.00 114.00 $ DTA-Equity BOP $ Change during Period (Unrealized losses $ Prior Period Deferred Tax Adjustment $ DTA-Equity EOP $ $ $ $ $ $ $ $ $ $ 4.20 $ $ 4.20 $ 4.20 $ $ (4.20) $ $ $ 3.36 $ (1.68) S 1.68 $ 1.68 $ $ (1.68) $ $ Total Assets $ 198.00 $ 198.00 $ 249.39 $ 345.62 $ 403.70 $ 499.28 $ 499.28 Liabilites DTL-Equity BOP $ Change during period (Unrealized Gains) $ Prior Period Deferred Tax Adjustment $ DTL-Equity EOP $ $ $ $ $ $ $ $ $ $ $ $ $ 5.88 (4.20) $ 1.68 $ 1.68 $ $ (1.68) $ $ $ 4.41 $ (1.68) $ 2.73S 1.68 2.73 Shareholders Equity Cs RE AOCI TSE $ $ $ $ 198.00 $ 198.00 $ 198.00 $ $ 67.19 $ $ $ (15.80) $ 198.00 $ 198.00 $ 249.39 198.00 $ 139.62 $ 6.32 $ 343.94 $ 198.00 $ 212.02 $ (6.32) $ 403.70 $ 198.00 $ 288.28 $ 10.27$ 496.55$ 198.00 288.28 10.27 496.55 Difference $ $ $ $ $ $ $ $ Statement of Cashflow Initial Position End Qtr 1 End Qtr 2 End Qtr 3 End Qtr 4 Annual FYE 288.28 CFO NI -gain+Loss OCI -gain+Loss -dta +dt1 CFO $ $ $ $ $ $ Purchase Stock 1/1/19 $ $ $ $ $ $ $ 67.19 $ $ $ (15.80) $ 20.00 $ (4.20) $ $ $ 67.19 72.43 $ $ 22.12 $ (28.00) $ 4.20 $ 1.68 $ 72.43 $ 72.40 $ $ (12.64) $ 16.00 $ (1.68) S (1.68) $ 72.40 $ 76.26 $ $ 16.59 $ (21.00) $ 1.68 S 2.73 $ 76.26 $ 10.27 (13.00) un 2.73 288.28 $ CFI $ (101.00) $ $ $ $ (101.00) CFF $198.00 $ $ $ $ 198.00 $ 385.28 Change in Cash Cash Beg Cash End $ $ $ 164.19 $ 164.19 $ 72.43 $ 164.19 $ 236.62 $ 72.40 $ 236.62 $ 309.02 S 76.26 $ 309.02 $ 385.28 $ 385.28 tax rate 21% Journal Entries Initial Position Purchase Stock 1/1/19 End Qtr 1 End Qtr 2 End Qur 3 End Qtr 3 End Qtr 4 End Qtr 4 Annual EYE Annual FYE Cash $ 198.00 CS $ 198.00 Stock $ 101.00 Cash $ 101.00 Unrealized loss $ 20.00 $ $ 16.00 $ $ SFVA $ 20.00 $ $ 16.00 $ $ SFVA $ $ 28.00 $ $ 21.00 $ 301.28 Unrealized Gain $ $ 28.00 $ $ 21.00 $ 301.28 Cash $ 189.00 $ 191.00 $195.00 $ 197.00 $ 772.00 Revenues $ 189.00 $ 191.00 $195.00 $197.00 $ 772.00 Expenses $ 103.95 $ 99.32 $ 103.35 $ 100.47 $ 407.09 Cash $103.95 $ 99.32 $ 103.35 $ 100,47 $ 407.09 0 0 $ $ OCI (net of tax) DTA 15.80 4.20 $ $ $ 12.64 $ 1.68 0 0 $ $ $ $ 0 0 DTA Unrealized loss (pre-tax) 0 0 $ $ 20.00 $ 4.20 $ $ $ 16.00 $ 1.68 $ $ $ - AOCI (net of tax) 0 0 $ 15.80 $ $ 12.64 $ $ OCI (net of tax) 0 0 $ 15.80 $ $ 12.64 $ $ Unrealized Gain 0 0 0 $ 28.00 $ $ 21.00 $ 301.28 DTL 0 0 0 $ 5.88 $ $ 4.41 $ DTL 0 0 0 $ 1.68 $ 1.68 $ 2.73 $ 2.73 OCI 0 0 0 $ 22.12 $ $ 16.59 $ 238.01 OCI 0 0 0 $ 22.12 $ - $ 16.59 $ 238.01 AOCI 0 0 0 $ 22.12 0 $ 16.59 $ 238.01 Tax Expense $ 17.86 $ 19.25 $ 19.25 $ 20.27 $ 76.63 IRS Cash Taxes Payable $ 17.86 $ 19.25 $ 19.25 $ 20.27 $ 76.63 IRS Cash Taxes Payable $ 17.86 $ 19.25 $ 19.25 $ 20.27 $ 76.63 Cash $ 17.86 $ 19.25 $ 19.25 $ 20.27 $ 76.63 T-Accounts Stock-HC Common Stock $198.00 AOCI $ 15.80 Cash $198.00 $ 101.00 $ 97.00 15.8 0 0 $ 101.00 $ 101.00 $198.00 0 OCI 15.8 0 0 22.12 0 12.64 16.59 $ 15.80 0 0 22.12 0 12.64 16.59 $ 22.12 $ 6.32 SEVA Unrealized Loss Unrealized Gain 0 0 $ 12.64 0 0 20 20 0 0 0 0 20 0 $ 6.32 0 0 20 0 ol 0 28 $ 16.59 $ 10.27 0 28 28 8 0 0 0 16 16 0 16 0 0 0 8 0 0 21 0 21 13 21 0 0 0 $ $ Deferred Tax Asset 0 4.20 0 4.20 0 S $ 4.20 0 1.68 0 0 1.68 Deferred Tax Liability 0 0 0 0 1.68 $ 5.88 $ 4.20 1.68 0 $ 2.52 $ $ 1.68 2.73 0 $ 0 4.41 4.20 Financial Statements Initial Position End Qtr 1 End Qtr 2 End Qtr 3 End Otr 4 Annual FYE 772.00 407.09 Income Statement Revs Oper Exp Unrealized g/(1) EBT Tax Expense Net Income Other Comp Income (OCI)-Net of tax Comprehensive Income (CI)-Net of Tax $ $ $ $ $ $ $ $ Purchase Stock 1/1/19 $ $ $ $ $ $ $ $ $ 189.00 $ $ 103.95 $ $ $ 85.05 $ $ 17.86 $ $ 67.19 $ $ (15.80) $ $ 51.39 $ 191.00 $ 99.32 $ $ 91.68 $ 19.25 $ 72.43 $ 22.12 $ 94.55 $ 195.00 $ 103.35 $ $ 91.65 $ 19.25 $ 72.40 $ (12.64) $ 59.76 $ 197.00 $ 100.47 $ $ 96.53 $ 20.27$ 76.26 $ 16.59 $ 92.85$ 364.91 76.63 288.28 10.27 298.55 91.65 364.91 Calculation of Taxable income EBT Unrealized g/(0) Taxable Income IRS Taxes $ $ $ $ iluun $ $ $ $ 85.05 $ $ 85.05 5 17.86 $ 91.68 $ $ 91.68 $ 19.25 $ $ $ $ $ 96.53 $ $ 96.53 $ 20.27 $ 91.65 19.25 364.91 76.63 Statement of Retained Earnings RE_BOP Net Income Dividends RE_EOP $ $ $ $ $ $ $ $ $ $ $ 67.19 $ $ 288.28 ului 67.19 $ 72.43 $ $ 139.62 S 139.62 $ 72.40 $ $ 212.02 $ 212.02 $ 76.26 $ $ 288.28 $ $ $ 67.19 $ 288.28 Calculation of AOCI AOCI_BOP Comprehnsive Income (CI) AOCI-EOP $ $ $ $ $ $ $ (15.80) $ (15.80) $ (15.80) $ 22.12 $ 6.32 $ 6.32 $ (12.64) $ (6.32) $ (6.32) 16.59 10.27 $ $ 10.27 10.27 $ is $ Balance Sheet Purchase Initial Stock End Qtr 1 End Qtr 2 End Qtr 3 End Qtr 4 Annual FYE Position 1/1/19 198.00 $ 101.00 $ 164.19 $ 236.62 $ 309.02 $ 385.28 $ 385.28 Assets Cash $ 101.00 Stock-HC SFVA-Bop Unrealized g/(U) SFVA-EOP Asset-FV $ $ $ $ $ 101.00 $ 101.00 $ $ $ $ (20.00) $ $ $ (20.00) $ 101.00 $ 81.00 101.00 $ (20.00) $ 28.00 $ 8.00 $ 109.00 $ 101.00 $ 8.00 $ (16.00) $ (8.00) $ 93.00 $ 101.00 $ (8.00) $ 21.00 $ 13.00 $ 114.00 $ 13.00 13.00 114.00 $ DTA-Equity BOP $ Change during Period (Unrealized losses $ Prior Period Deferred Tax Adjustment $ DTA-Equity EOP $ $ $ $ $ $ $ $ $ $ 4.20 $ $ 4.20 $ 4.20 $ $ (4.20) $ $ $ 3.36 $ (1.68) S 1.68 $ 1.68 $ $ (1.68) $ $ Total Assets $ 198.00 $ 198.00 $ 249.39 $ 345.62 $ 403.70 $ 499.28 $ 499.28 Liabilites DTL-Equity BOP $ Change during period (Unrealized Gains) $ Prior Period Deferred Tax Adjustment $ DTL-Equity EOP $ $ $ $ $ $ $ $ $ $ $ $ $ 5.88 (4.20) $ 1.68 $ 1.68 $ $ (1.68) $ $ $ 4.41 $ (1.68) $ 2.73S 1.68 2.73 Shareholders Equity Cs RE AOCI TSE $ $ $ $ 198.00 $ 198.00 $ 198.00 $ $ 67.19 $ $ $ (15.80) $ 198.00 $ 198.00 $ 249.39 198.00 $ 139.62 $ 6.32 $ 343.94 $ 198.00 $ 212.02 $ (6.32) $ 403.70 $ 198.00 $ 288.28 $ 10.27$ 496.55$ 198.00 288.28 10.27 496.55 Difference $ $ $ $ $ $ $ $ Statement of Cashflow Initial Position End Qtr 1 End Qtr 2 End Qtr 3 End Qtr 4 Annual FYE 288.28 CFO NI -gain+Loss OCI -gain+Loss -dta +dt1 CFO $ $ $ $ $ $ Purchase Stock 1/1/19 $ $ $ $ $ $ $ 67.19 $ $ $ (15.80) $ 20.00 $ (4.20) $ $ $ 67.19 72.43 $ $ 22.12 $ (28.00) $ 4.20 $ 1.68 $ 72.43 $ 72.40 $ $ (12.64) $ 16.00 $ (1.68) S (1.68) $ 72.40 $ 76.26 $ $ 16.59 $ (21.00) $ 1.68 S 2.73 $ 76.26 $ 10.27 (13.00) un 2.73 288.28 $ CFI $ (101.00) $ $ $ $ (101.00) CFF $198.00 $ $ $ $ 198.00 $ 385.28 Change in Cash Cash Beg Cash End $ $ $ 164.19 $ 164.19 $ 72.43 $ 164.19 $ 236.62 $ 72.40 $ 236.62 $ 309.02 S 76.26 $ 309.02 $ 385.28 $ 385.28 tax rate 21% Journal Entries Initial Position Purchase Stock 1/1/19 End Qtr 1 End Qtr 2 End Qur 3 End Qtr 3 End Qtr 4 End Qtr 4 Annual EYE Annual FYE Cash $ 198.00 CS $ 198.00 Stock $ 101.00 Cash $ 101.00 Unrealized loss $ 20.00 $ $ 16.00 $ $ SFVA $ 20.00 $ $ 16.00 $ $ SFVA $ $ 28.00 $ $ 21.00 $ 301.28 Unrealized Gain $ $ 28.00 $ $ 21.00 $ 301.28 Cash $ 189.00 $ 191.00 $195.00 $ 197.00 $ 772.00 Revenues $ 189.00 $ 191.00 $195.00 $197.00 $ 772.00 Expenses $ 103.95 $ 99.32 $ 103.35 $ 100.47 $ 407.09 Cash $103.95 $ 99.32 $ 103.35 $ 100,47 $ 407.09 0 0 $ $ OCI (net of tax) DTA 15.80 4.20 $ $ $ 12.64 $ 1.68 0 0 $ $ $ $ 0 0 DTA Unrealized loss (pre-tax) 0 0 $ $ 20.00 $ 4.20 $ $ $ 16.00 $ 1.68 $ $ $ - AOCI (net of tax) 0 0 $ 15.80 $ $ 12.64 $ $ OCI (net of tax) 0 0 $ 15.80 $ $ 12.64 $ $ Unrealized Gain 0 0 0 $ 28.00 $ $ 21.00 $ 301.28 DTL 0 0 0 $ 5.88 $ $ 4.41 $ DTL 0 0 0 $ 1.68 $ 1.68 $ 2.73 $ 2.73 OCI 0 0 0 $ 22.12 $ $ 16.59 $ 238.01 OCI 0 0 0 $ 22.12 $ - $ 16.59 $ 238.01 AOCI 0 0 0 $ 22.12 0 $ 16.59 $ 238.01 Tax Expense $ 17.86 $ 19.25 $ 19.25 $ 20.27 $ 76.63 IRS Cash Taxes Payable $ 17.86 $ 19.25 $ 19.25 $ 20.27 $ 76.63 IRS Cash Taxes Payable $ 17.86 $ 19.25 $ 19.25 $ 20.27 $ 76.63 Cash $ 17.86 $ 19.25 $ 19.25 $ 20.27 $ 76.63 T-Accounts Stock-HC Common Stock $198.00 AOCI $ 15.80 Cash $198.00 $ 101.00 $ 97.00 15.8 0 0 $ 101.00 $ 101.00 $198.00 0 OCI 15.8 0 0 22.12 0 12.64 16.59 $ 15.80 0 0 22.12 0 12.64 16.59 $ 22.12 $ 6.32 SEVA Unrealized Loss Unrealized Gain 0 0 $ 12.64 0 0 20 20 0 0 0 0 20 0 $ 6.32 0 0 20 0 ol 0 28 $ 16.59 $ 10.27 0 28 28 8 0 0 0 16 16 0 16 0 0 0 8 0 0 21 0 21 13 21 0 0 0 $ $ Deferred Tax Asset 0 4.20 0 4.20 0 S $ 4.20 0 1.68 0 0 1.68 Deferred Tax Liability 0 0 0 0 1.68 $ 5.88 $ 4.20 1.68 0 $ 2.52 $ $ 1.68 2.73 0 $ 0 4.41 4.20
