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Tax and Income Statement

 Tax and Income Declaration Essay

BYP2-2

1 . (a)Work in Method Inventory 25, 500

Raw Materials Inventory 25, 000

(b)If this deal was not remedied, the balance linen would be affected. The Unprocessed trash Inventory would be overstated and the Cash is definitely understated.

2 . (a)Sales Bonus Expense 12, 000

Cash 12, 000

(b)If this transaction was not corrected, both the balance sheet and the income statement would be affected. The income assertion would have the Sales Bonus Expense understated and the Income Tax Expense overstated. The error causes the under utilized overhead to be overstated or maybe the over utilized overhead to become understated. This kind of affects Cost of Goods Distributed, since the over/under applied balance is shut down out to Cost of Goods Offered. The error in Cost of Goods Marketed also has an effect on Stored Earnings. Therefore , Retained Revenue is over-stated because of the over­statement of net gain, and Income Taxes Payable is overstated.

a few. (a)Factory Labor120, 000

Stock Wages Payable105, 000

Workplace Payroll Taxes Payable 15, 500

(b)If this transaction has not been corrected, both balance sheet and income assertion would be affected. On the "balance sheet", the Cash, Stock Wages Payable, and Employer Payroll Income taxes Payable will be understated. The income assertion the Income Payable will be overstated plus the Cost of Goods Sole can be understated.

4. (a)Manufacturing Overhead   3, 1000

Raw Materials Inventory   3, 500

(b)If this transaction had not been corrected, both income declaration and "balance sheet" would be influenced. If the models that were in process throughout the month had been sold, in that case Cost of Goods Sold for the income affirmation is overstated, the Tax Expense is understated, and net income is usually understated. This affects Expense of Goods Offered, since the over/under applied harmony is shut out to Expense of Goods Marketed. The Cost of Products sold error would have an effect upon Retained Profits....

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