Gerald Requests an Extension for Filing His Last Year's Individual

question 12

Multiple Choice

Gerald requests an extension for filing his last year's individual income tax return. His tax liability is $10,000, of which $8,000 was withheld, leaving a balance due of $2,000 when he files on August 1 of the current year. His penalty for failure to pay the tax on time is

• A)$0.
• B)$40.
• C)$300.
• D)$400.

Determine the impact of closing entries on the Income Summary account.

Understand the preparation of final statements from the worksheet post adjustments and closings.

Recognize the sequence of steps in the accounting cycle.

Understand the purpose and preparation process of a post-closing trial balance.

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Definitions:

Ancestors

Predecessors from which one is descended, generally referring to earlier generations of a person's family lineage, who may influence current cultural, social, or biological aspects of the family.

Distinctive Role

Distinctive Role refers to a unique function or position that differentiates one entity or concept from another within a particular context or system.

Human Sacrifice

The act of killing one or more humans as part of a ritual, intended to appease or please deities, spirits, or the deceased, found in various cultures through history.

Life Force

An energy or vital principle believed to be inherent in all living organisms, giving them vitality and the capacity for growth.