Prepare the appropriate journal entry for pocus to record

Assignment Help Accounting Basics
Reference no: EM13848751

Pocus Inc. reports bad debt expense using the allowance method. For tax purposes the direct write-off method is used. At the end of the current year, Pocus has accounts receivable and an allowance for uncollectible accounts of S 10,000,000 and $500,000, respectively, and taxable income of S50,000,000. At the beginning of the current year, Pocus reported a deferred tax asset of $210,000 related to the difference in reporting bad debts, its only temporary difference. The enacted tax rate is 40% each year.

Required: Prepare the appropriate journal entry for Pocus to record the income tax provision for the current year. Show well-labeled computations to support the three amounts in your journal entry.

Reference no: EM13848751

Questions Cloud

The cross-sectional area of the squirrel : 4. A 555-g squirrel with a surface area of 865 cm^2 falls from a 4.4-m tree to the ground. Estimate its terminal velocity. (Use the drag coefficient for a horizontal skydiver. Assume that the cross-sectional area of the squirrel can be approximated a..
Motivation and teams-more than a pay cheque : Task 3. Case Study 3: Motivation and Teams, More Than a Pay Cheque ,  Explain the nature of groups and group behaviour in organisations. Make reference to Britannia Home Manufacturers (you can make assumptions).
What moral responsibility do physicist have : What moral responsibility do physicist have for thier discoveries? e.g. the discoveries of nuclear fission leading to nuclear weapon.
Less ambitious than the eu water directive : When China administrate pollution by using the term "Carrying capacity" of a river, does it mean that: Incorrect option 3 It is less ambitious than the EU water directive?
Prepare the appropriate journal entry for pocus to record : Prepare the appropriate journal entry for Pocus to record the income tax provision for the current year. Show well-labeled computations to support the three amounts in your journal entry.
Calculate the wave number : An electron in Li2+ falls from n = 2 to the ground state. Calculate the wave number, (v), of the emitted photon.
Leadership and motivation right boss wrong company : Task 2 Case Study 2: Leadership and Motivation, Right Boss, Wrong Company: -Discuss what can be the impact of different leadership styles on staff motivation when some change initiatives are being introduced in organisations;
A physics student with too much free time drops : A physics student with too much free time drops a watermelon from the roof of a building. He hears the sound of the watermelon going "splat" after a time interval ofΔt.You may ignore air resistance. How high is the building? The speed of sound is vs...
Task 1 case study organisational structure and culture : Task 1. Case Study 1: Organisational Structure and Culture, Surviving Greenscape’s Hard Times, Compare and contrast different organisational structures. In your opinion, what is the structure of Greenscape company?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  How do the level of sales and the level of production

how do the level of sales and the level of production affect operating income under variable costing and absorption

  A loader cost 326000 with a set of tires costing 26000 the

a loader cost 326000 with a set of tires costing 26000. the loader can be sold after 6 years 2800 hours operated per

  The following totals for the month of april were taken from

the following totals for the month of april were taken from the payroll register of kirk company. salaries and wages

  Installation of the new irrigation system

Evaluate whether ABC Wines should go ahead with the installation of the new irrigation system and whether they should use the purchase or the lease option and explain the primary ways in which finance leases differ from operating leases.

  Calculate the effect that increase will have on her profit

Suppose sales increase by 20 percent next month, calculate the effect that increase will have on her profit.

  Cabrera construction applies overhead to its projects at a

cabrera construction applies overhead to its projects at a rate of 75 per direct labor hour. the companys washington

  In an essay of 1250-1500 words comprehensively describe

in an essay of 1250-1500 words comprehensively discuss causal factors the implications and possible mitigation

  Disclosure of possible fraud to parties

Disclosure of possible fraud to parties

  The bonds pay semiannual interest and the interest payment

1.on january 1 2012 oakbasket company issued bonds with a face value of 800000. the bonds carry a stated interest of 7

  Which statement is true regarding accounting and time frames

Which statement is true regarding accounting and time frames?

  Xyz company uses the lifo method for inventory costing the

xyz company uses the lifo method for inventory costing. the company reported total inventory of 441 million on their

  Simmons corporation owns stock of armstrong inc prior to

simmons corporation owns stock of armstrong inc. prior to 2012 the investment was accounted for using the equity

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd