In the space below, record journal entries that should take place under GAAP during 2013 based on the information provided Use account names from the Balance Sheet and Income Statement provided above (the same names appear on T accounts below or in the Excel spreadsheet) Note When you record transactions, you do not need to worry about having enough funds on Teslas Cash account (72 points) As you can check by calculating the balance of the cash account, by the end of 2013, the company ran out of cash As a result, the company's bank account was overdrawn the account has overdraft protection The interest accrued on the overdrawn amount was $1,000 Account for overdraft (5 points) Before answering this question, calculate Pretax income Tesla's accountants analyze Book Tax differences in 2013 and determine the following Interest (or capital gains) on investment in municipal bonds is tax exempt Tesla follows accelerated depreciation for tax purposes The amount of tax depreciation exceeded Tesla's depreciation in the income statement by $50,000 There are no other book tax differences Taxes are accrued but not paid during 2013 Perform reconciliation of Pre Tax Income with Taxable Income and determine the amount of tax payable Assume that the statutory tax rate is 20 (4 points) Pre tax Income (book income) Adjustments for permanent differences Adjusted for permanent differences Pre tax Income Adjustments for temporary differences Taxable Income Tax payable (20 ) Required Record journal entry that accounts for income taxes in 2013 Recall that tax is accrued but not paid during 2013 (use accrued liabilities account) (3 points) Part II Assume that there were no other transactions (or adjusting entries) during 2013 Use T account balances to construct Tesla's Indirect method Cash Flow Statement You will find it convenient to use Cash Flow Statement Worksheet Print out and use the worksheet below or fill it out in the Excel file provided with the exam You can copy and paste your answer from the Excel Worksheet (18 points) Tesla Indirect Method Cash Flow Statement Year ending on December 31, 2013

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In the space below, record journal entries that should take place under GAAP during 2013 based on the information provided. Use account names from the

In the space below, record journal entries that should take place under GAAP during 2013 based on the information provided. Use account names from the Balance Sheet and Income Statement provided above (the same names appear on T-accounts below or in the Excel spreadsheet). Note: When you record transactions, you do not need to worry about having enough funds on Teslas Cash account. (72 points)

As you can check by calculating the balance of the cash account, by the end of 2013, the company ran out of cash. As a result, the company's bank account was overdrawn; the account has overdraft protection. The interest accrued on the overdrawn amount was $1,000. Account for overdraft. (5 points)

Before answering this question, calculate Pretax income. Tesla's accountants analyze Book/Tax differences in 2013 and determine the following:

Interest (or capital gains) on investment in municipal bonds is tax-exempt.
Tesla follows accelerated depreciation for tax purposes. The amount of tax depreciation exceeded Tesla's depreciation in the income statement by $50,000.
There are no other book/tax differences.
Taxes are accrued but not paid during 2013.

Perform reconciliation of Pre-Tax Income with Taxable Income and determine the amount of tax payable. Assume that the statutory tax rate is 20%. (4 points)

Pre-tax Income (book income) _________

Adjustments for permanent differences _________

Adjusted for permanent differences Pre-tax Income _________

Adjustments for temporary differences _________

Taxable Income _________

Tax payable (20%) _________

Required: Record journal entry that accounts for income taxes in 2013. Recall that tax is accrued but not paid during 2013 (use accrued liabilities account) (3 points)

Part II. Assume that there were no other transactions (or adjusting entries) during 2013. Use T-account balances to construct Tesla's Indirect method Cash Flow Statement. You will find it convenient to use Cash Flow Statement Worksheet. Print out and use the worksheet below or fill it out in the Excel file provided with the exam. You can copy and paste your answer from the Excel Worksheet. (18 points)

Tesla

Indirect Method Cash Flow Statement

Year ending on December 31, 2013