Intermediate accounting assignment

Year 2 financial income before tax: $100000 – Warranty – Year one the company recorded warranty expense of $10000. It will be paid in years two and three. Year two warranty expense was $8000 to be paid in years three and four. – In year two the company accrued $15000 for fines for an environmental spill which will be paid in year three. – In year two the company recognized $6000 of municipal interest income. – Deferred revenue in year one was $30000 to be recognized in year two for book purposes. – Company purchased a truck in year one for $33000. It is depreciated over three years 0 residual value straight-line for book purposes. For tax purposes the company is allowed to expense the entire amount in the first year. – DTA at the beginning of year two is $12000. – DTL at the beginning of year two is $6600. – The tax rate in years one and two was 30%. At the end of year two Congress approved a tax rate increase to 40% for future years. You were hired at the beginning of YEAR TWO. The person who did the work for year one a former UP grad was promoted. You are confident it was done correctly in the prior year. a.Show how the beginning balance in the deferred tax liability account at year two was computed. (4 points) b.Prepare a tax schedule for year two similar to that we did in class that computes taxes payable and ending balances in the deferred tax asset and deferred tax liability accounts. (22 points) c. Prepare the journal entry that the company will make for year two. (6 points) d.Prepare an income statement starting at Income before tax. (3 points) e.What information is reported in the balance sheet as of the end of year two? Be clear whether it is an asset or liability current or long term. (3 points) f.Because of Covid this year you became concerned about the ability to realize the benefits of deferred assets such that the company believes only 60% of the DTA will be realized. What additional journal entry should be made? And then at what amount would the deferred accounts be reported on the financials? (4 points) Requirements: 1 page | .doc file The following represents information about the first several years of operations. ‘

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your paper today and save 30% with the discount code HAPPY

X
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 323 412 5597

Feel free to ask questions, clarifications, or discounts available when placing an order.