Golf Academy, Inc., provides private golf lessons. Its unadjusted trial balance

Question

Golf Academy, Inc., provides private golf lessons. Its unadjusted trial balance at December 31, 2018, follows, along with information about selected accounts. t ll Credit Purther Information Cash Supplies Deferred Revenue $32,700 760 As reported on December 31 bank statement Based on count, only $280 of supplies still exist. and $58O for January lessons December 28. They have not yet been paid for work on 4,380 of this amount, $3,800 was received for December lessons Salaries and Wages payable 0 Employees were paid $1,800 for 10 days of work through Income Tax Payable Interest Payable Notes Payable (long-term) December 29 and 30 year's tax notes payable for the current period. 0 The company has paid last year's income tax but not this 0 The company has not paid the $110 of interest owed on its 13,200 This one-year note was taken out this year on December 1. Common Stock 1,000 This amount was contributed for common stock in prior years. Retained Earnings 3,800 Thie in the balance reported at the and of lant 51,180 Most customers pay cash for lessons each time they are Service Revenue Salaries and Wages Expense Supplies Expense provided, but some customers pay in advance. Employees vorked through December 30, but did not work on Decenber 31. This is the cost of supplies used through November 30. The donpany has not paid the $110 of interest owed on its notes payable for the eurrent period The company has an average tax rate of 308 36,900 3,200 Interest Expense Income Tax Expense Totals $73,560 $73.560 Prexa 4 o 4 Next

Explanation / Answer

Solution:

Computation of Income tax for year ended Dec 31, 2018 Particulars Amount Service revenue ($51,180 + $3,800) $54,980.00 Expenses: Salaries and wages expense ($36,900 + $360) $37,260.00 Supplies Expense ($3,200 + $480) $3,680.00 Interest expense $110.00 Income before taxes $13,930.00 Income tax expense (30%) $4,179.00

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.