The Account Balances Appearing on the Trial Balance (Below) Were

question 104

Essay

The account balances appearing on the trial balance (below) were taken from the general ledger of Speedy Copy Shop at September 30.
Additional information for the month of September which has not yet been recorded in the accounts is as follows:
(a) A physical count of supplies indicates $500 on hand at September 30.
(b) The amount of insurance that expired in the month of September was $400.
(c) Depreciation on equipment for September was $600.
(d) Rent owed on the copy shop for the month of September was $750 but will not Instructions
Using the above information, complete the worksheet on the following page for Speedy Copy Shop for the month of September.

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Definitions:

Permanent Differences

Differences between taxable income and accounting income that originate in one period and do not reverse over time, affecting the effective tax rate.

Temporary Differences

Temporary differences are differences between the carrying amount of an asset or liability in the balance sheet and its tax base, leading to deferred tax assets or liabilities.

Taxable Income

Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Pretax Financial Income

Income of a company calculated before taxes are deducted, often compared to taxable income for tax planning.