Home »  Solution library  » 149219
Welcome Guest !

Solut_Library Solution libraryQuestion: 149219

Question(s) / Instruction(s):
&X Co. is a retail store owned by Paul Tuner. During the month of November, the equity accounts were affected by the following events:
Nov.9 Turner invested an additional $15,000 in the business.
Nov.15 Tuner withdrew $1,500 for his salary for the first two weeks of the month.

Nov.30 Turner withdrew $1,500 for his salary for the second two weeks of the month.

Nov.30 S&X distributed $1,000 or earnings to Turner.

a.Assuming that the business is organized as a sole proprietorship:
1.Prepare the journal entries to record the above events in the accounts of S&X.
2.Prepare the closing entries for the month of November. Assume that after closing all of the revenue and expense accounts, the Income Summary account has a balance of $5,000.
3.Prepare the journal entries to record above events. Assume that revenue & Expense acct is $2000. Income tax Expense acct to income summary acct. Income tax rate is at 30%.

4. Explain the causes of the differences in the net income between S&X as a sole propietorship and S&X as a corporation.

5. Describe the effects of the business operations on Turners individual income tax return, assuming that the business is organized as 1)a sole proprietorship and 2) a corporation.


Expert's Answer

  • Click on LIVE CHAT to know the Price Quote
Pubilbay - live chat
. ....... .
As We Seen ..
abc news reuters Market Watch Yahoo Finance fox news cnbc
Not Your Question?

Submit your Questions and get customized solutions.

You are Protected!

We offer safe and secure credit card and electronic transactions. Your transactions are performed in extremely safe and secure settings.

paypal norton ssl
Your Privacy!

Pupilbay does not sell or rent your personal information to third parties at all. Your contact details will be used to get in touch with you to offer fast and efficient service.