The following additional information relates to GGG Company: December 31, 2021 December 31, 2020 Dividends payable P 34,000 P 22,000 Equipment 925,000 780,000 Accumulated depreciation - equipment 283,000 300,000 Unappropriated accumulated profits 710,000 500,000 Appropriated accumulated profits 20,000 0 Cash 6,700 3,500 The following additional information relates to 2021: - Profit for the year, P 1,000,000. - Depreciation expense for the year, P 74,000. - During the year, equipment was overhauled at a cost of P 25,000. The amount was debited to accumulated depreciation. - During the year, equipment with a carrying value of P 100,000 was sold. Loss of P11,000 was realized on the sale. 1. How much was the equipment purchased during 2021? 2. How much were the dividends paid during 2021?

The following additional information relates to GGG Company: December 31, 2021 December 31, 2020 Dividends payable P 34,000 P 22,000 Equipment 925,000 780,000 Accumulated depreciation - equipment 283,000 300,000 Unappropriated accumulated profits 710,000 500,000 Appropriated accumulated profits 20,000 0 Cash 6,700 3,500 The following additional information relates to 2021: - Profit for the year, P 1,000,000. - Depreciation expense for the year, P 74,000. - During the year, equipment was overhauled at a cost of P 25,000. The amount was debited to accumulated depreciation. - During the year, equipment with a carrying value of P 100,000 was sold. Loss of P11,000 was realized on the sale. 1. How much was the equipment purchased during 2021? 2. How much were the dividends paid during 2021?

Name: The following additional information relates to GGG Company:December 3
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Description: The following additional information relates to GGG Company:December 31, 2021 December 31, 2020Dividends payable P 34,000 P 22,000Equipment 925,000 780,000Accumulated depreciation - equipment 283,000 300,000Unappropriated accumulated profits 710,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...

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Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
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