8c400dce61c3f8fba3a30152043a7aaa5c87c09c.doc. Page 1 of 1Chapter 1. What influences the development of the tax law?Wang Repair Corporation (First Year of Operation)Cash$29,000Revenue$140,000Accounts Receivable20,000Expenses:Allowance for doubtful accounts(3,000)17,000Salaries Expense-Owner46,000Equipment (5-year life)10,000Supplies Expense18,000Accumulated Depreciation(2,000)8,000Insurance & Utilities9,000Building & Land 200,000Property Tax Expense1,000Accumulated Depreciation(4,000)196,000Interest Expense10,000Deferred Tax Asset0Depreciation Expense6,000Other Assets50,00050,000Bad Debts Expense 4,000Total Assets$300,000Other Expense/Loss6,000Accounts Payable10,000Total Expense100,000Mortgage-10% (Due 2011)100,000Net Income before Tax40,000Income Tax Payable-Current0Income Tax Expense-Current0Deferred Tax Liability0Income Tax Expense-Deferred0Total Liabilities$110,000Net Income after tax (loss)$40,000Common Stock ($10 Par)150,000Retained Earnings - Begin. Balance0Retained Earnings40,000Subtotal40,000Stockholders' Equity190,000Less: DividendsTotal Liabilities & Equity$300,000Retained Earnings - Ending Balance40,000Corporation was organized by Mr. Wang on January 1, 2010. Mr. Wang owns all of the stock.
This is the end of the preview.
access the rest of the document.
Generally Accepted Accounting Principles, Wang Repair Corporation