Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year- end December 31 follow. Debit Credit a. Interest revenue..... $ 14,000 $ 34,000 b. Depreciation expense-Equipment. c. Loss on sale of equipment... d. Accounts payable.... e. Other operating expenses . f. Accumulated depreciation-Equipment . g. Gain from settlement of lawsuit.... h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax). j. Gain on insurance recovery of tornado damage k. Net sales..... 1. Depreciation expense-Buildings. 25,850 44,000 106,400 71,600 44,000 174,500 18,250 20,000 998,000 52,000 m. Correction of overstatement of prior year's sales (pretax).. 16,000 n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit... p. Income tax expense.. q. Cost of goods sold. 34,000 23,250 ? 482,500
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year- end December 31 follow. Debit Credit a. Interest revenue..... $ 14,000 $ 34,000 b. Depreciation expense-Equipment. c. Loss on sale of equipment... d. Accounts payable.... e. Other operating expenses . f. Accumulated depreciation-Equipment . g. Gain from settlement of lawsuit.... h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax). j. Gain on insurance recovery of tornado damage k. Net sales..... 1. Depreciation expense-Buildings. 25,850 44,000 106,400 71,600 44,000 174,500 18,250 20,000 998,000 52,000 m. Correction of overstatement of prior year's sales (pretax).. 16,000 n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit... p. Income tax expense.. q. Cost of goods sold. 34,000 23,250 ? 482,500
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 7PB: Using the following information, A. Make the December 31 adjusting journal entry for depreciation....
Related questions
Question
Required
Answer each of the following questions by providing supporting computations.
1. Assume that the company’s income tax rate is 30% for all items. Identify the tax effects and after-tax
amounts of the three items labeled pretax.
2. Compute the amount of income from continuing operations before income taxes. What is the amount
of the income tax expense? What is the amount of income from continuing operations?
3. What is the total amount of after-tax income (loss) associated with the discontinued segment?
4. What is the amount of net income for the year?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College