Problem C.8 - 30 Income Summary 1400 Retained Earnings 1400...

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JASON WILCOX PROBLEM C.8 A1 15,000 9-Nov Cash Paul Turner, Capital 15,000 To record additional investment 1500 15 Drawing Cash 1500 To record two week salary 1500 30 Drawing Cash 1500 To record two week salary 1000 30 Drawing Cash 1000 Distributed earnings to Paul Turner A2 Closting Entries 30 Income Summary 5000 Paul Turner, Capital 5000 To close Income Summary 30 Paul Turner, Capital 4000 Paul Turner, Drawing 4000
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B1 9-Nov Cash 15,000 Capital Stock 15,000 Issued stock of capital stock for cash 15 Salaries Expense 1500 Salaries Payable 1500 Paid two week salary for Paul Turner 30 Salaries Expense 1500 Salaries Payable 1500 Paid two week salary for Paul Turner 30 Dividends Payable 1000 Cash 1000 Paid dividends declared on Nov 20 B2 Closing Entries Income Tax Expense 600 600 To prepare tax expense, 2000 retained ea by the 30 percent tax rate
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Unformatted text preview: 30 Income Summary 1400 Retained Earnings 1400 To close Income Summary 30 Retained Earnings 1000 Dividends 1000 To close dividends account declared during the year Income Tax Payable C. The net incomes between sole proprietorship is higher than that when S & X Co is a corporation because taxes are taken o operations, and also Paul Turners salary is an expense when it’s a corporation, versus just a withdrawal as a sole proprietorsh i p D. 1) Paul Turner's tax return would include the business with his individual tax return and profit/loss would show on his return . 2) Paul Turners tax return would only show the amount of dividends received from the corporation on his tax return....
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This note was uploaded on 12/18/2010 for the course BUS 254788 taught by Professor Mitchell during the Spring '10 term at SUNY Albany.

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Problem C.8 - 30 Income Summary 1400 Retained Earnings 1400...

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