1.
Net Loss: Net loss is the excess amount of expenses which arises after deducting all the revenues of a company. In simple terms, it is the difference between total expenses and total revenues of the company.
To Calculate: The net loss of CA Services.
2.
Shareholder’s Equity: Shareholder’s equity refers to the right the owner possesses over the resources of the business. Revenues and the expenses are the components of the shareholder’s equity.
To Calculate: The shareholder’s equity of CA Services.
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Financial Accounting
- Grotto Ltd has already sent $19,600 to the ATO in respect to PAYG, and this figure shown as a debit in the Income Tax Expense account. The Profit and Loss account is then prepared and the Net Profit (before tax) is found to be $75,000. The current company tax rate is 30%. Required: Prepare general journal entries for the following Correct the Income Tax Expense account Close the Income Tax Expense account Transfer Net Profit (after tax) to Retained Earningsarrow_forwardA company's trial balance shows a debit balance of $2.1 million brought forward on current tax and a credit balance of $5.4 million on deferred tax. The tax charge for the current year is estimated at $16.2 million and the carrying amounts of net assets are $13 million in excess of their tax base. The income tax rate is 30% What amount will be shown as income tax in the statement of profit or loss for the year? A $15.6 million B $12.6 million C $16.8 million D $18.3 millionarrow_forwardb. Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Include a reconciliation of the retained earnings account. ??? NOTE: Taxes payable for last year are about 19.6443% of last year's taxes on the income statement. The pro forma value is obtained by taking 19.6443% of next year's taxes. Complete the assets part of the pro forma balance sheet for next year: (Round to the nearest dollar.) Pro Forma Balance Sheet Provincial Imports, Inc. for Next Year (Judgmental Method) Cash $ Marketable securities Accounts receivable Inventories Total current assets $ Net fixed assets Total assets $arrow_forward
- The following data represent the diffence between accounting and tax income for Seafood Imports Inc., whose pre-tax accounting income is $695,000 for the year ended December 31. The company's income tax rate is 45%. Additional information relevant to income taxes includes the following. a. Capital cost allowance of $270,000 exceeded accounting depreciation expense of $157,000 in the current year. b. Rents of $29,000, applicable to next year, had been collected in December and deferred for financial statement purposes but are taxable in the year received. c. In a previous year, the company established a provision for product warranty expense. A summary of the current year's transactions appears below: ii. Warranty Expense for the Year 42,500 iii. Payments made to fulfill product warranties. 35,000 d. Insurance expense to cover the company's excutive officers was $7,500 for the year. Required: Prepare all the journal entries to record income taxes for Seafood…arrow_forwardDan plc is preparing its financial statements for the year ended 31 December 20X7. Its initial trial balances show the following balance: Income tax payable on 1 January 20X7 Income tax paid M 337,850 £ 351,083 The income tax paid during the year ended 31 December 20X7 completely settles the 20X6 liability. The total estimated tax due on the profits for the year ended 31 December 20X7 is 402,917 Dan plc should record the following journal at 31 December 20X7 A. Debit Income tax expense £389,684; Credit Income tax payable £51,834, Credit Income tax paid £337,050 B. Debit Income tax expense £389,684, Credit Income tax payable £65,067, Credit Income tax paid £324,617 C. Debit Income tax expense £402,917, Credit Income tax payable £65,067, Credit Income tax paid £337,850 D. Debit Income tax expense £402,917, Credit Income tax payable £51,834; Credit Income tax paid £351,083arrow_forwardOn 7/1, the beginning balance in sales tax payable is a $50,000 credit. On 7/15, a $45,000 cash payment is made to the governing authority for the sales taxes collected, which results in which of the following: O Assets decrease and expenses increase. O Assets increase and stockholders' equity decrease. O Assets increase and liabilities decrease. O Assets decrease and liabilities decrease. O Assets decrease and stockholders' equity increase. O Assets decrease and expenses decrease. ASUS f4 f6 E3 f10 f11 f5 f7 f8 f9 团 2$ 4 & 7 8. 6. Y U F G H CI 因 6 5 图arrow_forward
- A company reported in the income statement for the current year 900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% What amount should be reported as current provision for income tax or current tax expense for the current year?arrow_forwardWhipporwill, Incorporated's, net income for the most recent year was $9,551. The tax rate was 23 percent. The firm paid $4,695 in total interest expense and deducted $5,162 in depreciation expense. a. What was the company's taxable income for the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What was the company's EBIT for the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What was the company's cash coverage ratio for the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.arrow_forward1. Faye Faye Corporation's statement of financial performance for the year ended December 31, 20X2, shows pretax income of P 1,000,000. The following items are treated differently on the tax return and in the accounting records. Tax Return Accounting Records Rent income P 70,000 P 120,000 Depreciation Expense 280,000 220,000 Premiums on officers' life insurance 90,000 Faye Faye's rate for 20X2 is 30%. How much is the current tax expense for 20X2?arrow_forward
- A company reported in the income statement for the current year 900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% What amount should be reported as current provision for income tax or current tax expense for the current year?A. 225,000B. 270,000C. 230,000D. 220,000arrow_forwardA company is preparing its financial statements for the year ending 31 March 2020. The initial trial balance has the following figures relating to tax Income tax payable at 1 April 2019 £25,325 Icome tax paid during the year ended 31 March 2020 £15,225 The estimated income tax liability for the year ended 31 March 2020 is £16,650. What is the income tax figure for inclusion in the company's statement of profit or loss for the year ended 31 March 2020?arrow_forwardMaple Inn reports Net Income before taxes of $12 million for its fiscal year. The company’s tax rate is $25%. Which of the following is true? Group of answer choices $9 million will be included as the beginning balance for next year’s Income Statement. $9 million will be transferred to Retained Earnings at year-end. None of the answers are correct. $12 million will be transferred to Retained Earnings at year-end. $12 million will be included as the beginning balance for next year’s Income Statement.arrow_forward
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