Windsor Corporation began operations on January 1, 2022. During its first 3 years of operations, Windsor reported net income and declared dividends as follows. 2022 2023 2024 Net income $37,600 117,500 150,400 Dividends declared $-0- 47,000 47,000 The following information relates to 2025. Income before income tax Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $23,500 will be paid on Jan. 15. 2026) Effective tax rate $225,600 23,500 94,000 20%
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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.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.York Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax Dividends declared 22) $ 645,000 480,000 1,500,000 3,000,000 Net income Retained earnings, 1/1/21, as reported York should report retained earnings, 12/31/21, as adjusted at? Jersey Company reported the following information for 2021: 1,530,000 1,050,000 165,000 23) Sales revenue 2$ Cost of goods sold Operating expenses Unrealized holding gain on available for-sale securities 120,000 6,000 Cash dividends received on the securities For 2021, Jersey would report other comprehensive income of? For the year ended December 31, 2021, Colorado Inc. reported the following: 24 24) 120,000 20,000 4,000 2,000 160,000 80,000 Net income Preferred dividends declared Common stock dividend declared Unrealized holding loss, net of tax Retained earnings, beginning balance Common stock Accumulated Other Comprehensive Income, Beginning Balance 10,000 What would Colorado…
- Flounder Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax Dividends Net income Retained Earnings, January 1, 2023 Flounder should report retained earnings at January 1, 2023, as adjusted at OOO $5616000. $5022000. $9609000. $7000000. $1384000 1029000 3203000 6406000Happy Corporation reports the following information: Understatement of depreciation expense in prior years before tax Dividends declared and paid Net income Retained earnings, 1/1/2022 (as of Dec 31, 2021) $1,612,500 960,000 3,000,000 6,000,000 [appy is subject to 20% income tax rate. What amount should Happy report as retained earnings on 12/31/2022? ample of Answer: 4000 (No comma, space, decimal point, or $ sign) ck here to use Excel. NCoronado Corporation, a private company, began operations on January 1, 2020. During its first three years of operations. Coronado reported net income and declared dividends as follows: 2020 2021 2022 Net income $50,000 130,000 151,000 Dividends declared Effective tax rate $0 50,000 The following information is for 2023: 50,000 Income before income tax Correction of prior period error: understatement of 2021 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) Dividends declared (of this amount, $25,000 will be paid on January 15, 2024) $320,000 Coronado Corporation Statement of Retained Earnings 35,000 45,000 100.000 40% Prepare a 2023 statement of retained earnings for Coronado. The company follows ASPE. (List items that increase retained earnings first after adjusted balance. Enter negative amounts using either o negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
- Prepare the bottom portion of Sheridan's 2021 income statement, beginning with “Income from continuing operations before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sheridan Corporation Income Statement (Partial) For the Year Ended December 31, 2021 ncome from Continuing Operations before Income Taxes 1164000 ncome Tax Expense Current $ Deferred 189000 ncome from Continuing Operations Gain on Discontinued Operations 195000 Less v: -39000 i 156000 let Income / (Loss) $ %24 %24 > >The following is from the 2024 annual report of Kaufman Chemicals, Incorporated: Statements of Comprehensive Income Years Ended December 31 2024 2023 2022 Net income $ 900 $ 730 $ 585 Other comprehensive income: Change in net unrealized gains on AFS investments, net of tax of $23, ($20), and $20 in 2024, 2023, and 2022, respectively 35 (28) 28 Other (1) (2) 1 Total comprehensive income $ 934 $ 700 $ 614 Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows: ($ in millions) 2024 2023 Shareholders’ equity: Common stock $ 350 $ 350 Additional paid-in capital 8,575 8,575 Retained earnings 7,655 7,099 Accumulated other comprehensive income 114 80 Total shareholders’ equity $ 16,694 $ 16,104 Required: 3. From the information provided, determine how Kaufman calculated the $114 million accumulated other comprehensive income in 2024.Oriole Corporation, a private company, began operations on January 1, 2020. During its first three years of operations, Oriole reported net income and declared dividends as follows: 2020 2021 2022 Net income $54,000 136,000 160,000 Dividends declared $0 50,000 50,000 The following information is for 2023: Income before income tax Correction of prior period error: understatement of 2021 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) Dividends declared (of this amount, $25,000 will be paid on January 15, 2024) Effective tax rate $360,000 39,000 49,000 100,000 40% Prepare a 2023 statement of retained earnings for Oriole. The company follows ASPE. (List items that increase retained earnings first after adjusted balance. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)
- Pretax financial statement income for the year ended December 31, 2024 was $180 million for Wilton Company. Wilton's taxable income was $120 million. This was a result of differences between depreciation for financial reporting purposes and tax purposes. The enacted tax rate is 20% for 2024 and 25% thereafter. What amount should Wilton report as the current portion of income tax expense for 2024? $45 million $24 million $30 million $36 millionPrepare the bottom portion of Sheridan's 2021 income statement, beginning with "Income from continuing operations before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sheridan Corporation Income Statement (Partial) For the Year Ended December 31, 2021 icome from Continuing Operations before Income Taxes 1164000 ncome Tax Expense Current Deferred 189000 ncome from Continuing Operations Gain on Discontinued Operations 195000 Less -39000 156000 let Income / (Loss) %24 %24 > >The accounting income (loss) figures for Flounder Corporation are as follows: 2018 $162,000 2019 246,000 2020 84,000 2021 (162,000) 2022 (385,000) 2023 140,000 2024 156,000 Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a 30% tax rate for 2018 and 2019, and a 25% tax rate for the remaining years. Prepare the journal entries for each of the years 2020 to 2024 to record income tax expense and the effects of the tax loss carrybacks and carryforwards, assuming Flounder uses the carryback provision first. All income and losses relate to normal operations and it is more likely than not that the company will generate substantial taxable income in the future. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Year Account Titles and Explanation Debit…