29 Jun Question On November 1 2006, Janet Morton and Kim
Question
On November 1 2006, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is summarized as follows:
*Business address is 1010 Northwest Parkway, Dallas TX 75225, phone is (214) 555-2211; email address is p..[email protected].com.
*EIN is 11-1111111, principal business activity code is 453910
*Janet and Kim each own 50% of the common stock; Janet is President and Kim is vice president of the company. No other class of stock is authorized.
*Both Janet and Kim are full time employees of the company. Janet’s SSN is 1246789 and Kim’s SSN is 987-65-4321.
*Pet Kingdom is an accrual method, calendar year tax payer. Inventories are determined using FIFO and the lower of cost or market. The company uses straight-line method of depreciation for book purposes and accelerated/MACRS for tax purposes.
*During 2012, the corp distributed cash dividends of $300,000.
Financial Statement Summary Information:
Income Statement:
Income:
Gross Sales $6,900,000
Sales Returns & Allowances $(240,000)
Net Sales $6,660,000
Cost Of Goods Sold $(2,760,000)
Gross Profit $3,900,000
Dividends received from stock
investments in less-than-20%-
owned US Corporations $52,500
Interest Income:
State Bonds $18,000
Certificates of Deposit $24,000 Total Interest income: $42,000
Total Income: $3,994,500
Expenses:
Salaries – Officers:
Janet Morton: $315,000
Kim Wong: $315,000 TOTAL Salaries: $630,000
Salaries – Clerical and Sales: $870,000
Taxes (State, local and payroll): $285,000
Repair and Maintenance: $168,000
Interest Expense:
Loan to purchase State bonds $10,500
Other Business Loans: $261,000 TOTAL Interest Expense: $271,500
Advertising : $69,000
Rental Expense: $129,000
Depreciation: $120,000
Charitable Contributions: $45,000
Employee Benefit Programs: $72,000
Premiums on term life
insurance policies on the lives of
Janet Morton and Kim Wong; Pet
Kingdom is the designated beneficiary: $48,000
Total Expenses: ($2,707,500)
Net Income before taxes: $1,287,000
Federal Income Tax: $(423,555)
Net income per books: $863,445
**(Depreciation for tax purposes is $165,00. I am not provided enough detailed data to comple
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.