C12-Chp-02-7A-Prb-Fin-Stmts-and-Taxable-Income

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1edfb29ad44aba8d63dc62d0773fcc18245c08f6.xls Page 1 of 3 Jon started a consulting company on January 1, 2010. All consulting services are provided on credit. All operating expenses are paid when incurred. All transactions for organization and operation in 2010 are presented below. A Jon invested cash in the new corporation. B Bought equipment for cash (10-year life) C Bought office building for cash (40-year life) D Billed customers for consulting services E Paid ultilities and other operating expenses F Recorded depreciation expense - Equip.[Kieso (12) Ch. 11 pg 526] G Recorded depreciation expense - Bldg.[Kieso (12) Ch. 11 pg 526] H Recorded bad debts for the year [Kieso (12) Ch. 7 pg 323] I Wrote-off uncollectible accounts [Kieso (12) Ch. 7 pg 326] J Recorded collections of receivables from customers Study the trial balance below. Enter the amount for each transaction above. No payment was made during 2010 for federal corporate income taxes. An entry to record income taxes payable has not been made. 1 Cash $404,000 2 Accounts Receivable 178,000 3 Allowance for Bad Debts $4,000 4 Equipment 30,000 5 Accumulated Depreciation-Straight Line- 10 yrs 3,000 6 Building 200,000 7 Accumulated Depreciation-Straight Line- 40 yrs 5,000 8 Income Tax Payable 9 Deferred Income Tax [Kieso (12) Ch. 19 pg 974] 10 Common Stock 500,000 11 Retained Earnings 12 Revenue 400,000 13 Depreciation Expense 8,000 14 Bad Debts Expense 6,000 15 Utilities and other operating expenses 86,000 16 Income Tax Expense 17
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This note was uploaded on 03/09/2012 for the course ACCT 6120 taught by Professor Godfrey,h during the Spring '08 term at UNC Charlotte.

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