tailieunhanh - Lecture College accounting (13/e): Chapter 21 - Price, Haddock, Farina

Chapter 21 - Corporate earnings and capital transactions. After reading this chapter, you should be able to: Estimate the federal corporate income tax and prepare related journal entries, complete a worksheet for a corporation, record corporate adjusting and closing entries, prepare an income statement for a corporation, record the declaration and payment of cash dividends, record the declaration and issuance of stock dividends, record stock splits,. | 1- McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Corporate Earnings and Capital Transactions Section 1: Accounting for Corporate Earnings Chapter 21 Section Objectives Estimate the federal corporate income tax and prepare related journal entries. Complete a worksheet for a corporation. Record corporate adjusting and closing entries. Prepare an income statement for a corporation. Tax Estimates Beginning of year: The corporation estimates the income tax expense for the coming year. Quarterly: The corporation makes tax deposits based on the estimated tax expense. April 15 June 15 September 15 December 15 End of year: The corporation recomputes the estimated income tax expense and compares it to the tax deposits made. If the quarterly tax deposits are less than the end-of-year estimated tax expense, record the difference as follows: Year-End Adjustment of Tax Liability Debit: Income Tax Expense Credit: Income Tax Payable If the | 1- McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Corporate Earnings and Capital Transactions Section 1: Accounting for Corporate Earnings Chapter 21 Section Objectives Estimate the federal corporate income tax and prepare related journal entries. Complete a worksheet for a corporation. Record corporate adjusting and closing entries. Prepare an income statement for a corporation. Tax Estimates Beginning of year: The corporation estimates the income tax expense for the coming year. Quarterly: The corporation makes tax deposits based on the estimated tax expense. April 15 June 15 September 15 December 15 End of year: The corporation recomputes the estimated income tax expense and compares it to the tax deposits made. If the quarterly tax deposits are less than the end-of-year estimated tax expense, record the difference as follows: Year-End Adjustment of Tax Liability Debit: Income Tax Expense Credit: Income Tax Payable If the quarterly tax deposits are greater than the end-of-year estimated tax expense, record the difference as follows: Debit: Income Tax Refund Receivable Credit: Income Tax Expense 1. As a deduction at the bottom of the income statement. 2. As an operating expense, to emphasize that taxes represent a cost of doing business. There are two ways to show income tax expense on the income statement: Reporting Income Tax Expense on the Income Statement Income reported on the financial statements does not usually match taxable income reported on the tax return. Tax laws do not always follow generally accepted accounting principles: Deferred Income Taxes Income or expenses can be included in taxable income this year and appear on the financial statements in later years, or vice versa. Income or expenses can be included on the financial statements but never appear in taxable income. 1. Close revenue to Income Summary. 2. Close expenses to Income Summary. 3. Close Income Summary (net income or

• Kế toán - Kiểm toán
• College accounting
• Lecture College accounting
• Financial statement
• Cost accounting
• Corporate earnings
• Capital transactions
• Job order cost accounting
• Accounting for sales
• Accounts receivable
• Accounting for purchases
• Accounts payable
• Closing procedures
• Accounting cycle
• Accounting principles
• Reporting standards
• Accounting for partnerships
• Allocating income
• Process cost accounting
• Process inventory
• Language of business
• Financial information
• Analyzing business transactions
• Financial interest
• T accounts
• General ledger
• General journal
• The worksheet
• Trial balance
• Closing entries
• Postclosing trial balance
• Cash receipts
• Cash payments
• Payroll computations
• Payroll laws
• Payroll taxes
• Employee income tax
• Recording adjustments
• Uncollectible accounts
• Notes payable
• Notes receivable
• Merchandise inventory
• Inventory costing methods
• Disposition of assets
• Depreciation methods
• Capital stock transactions
• Capital stock