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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 14-6 LESSON 14-6 Calculating Federal Income Tax and Completing a Work Sheet

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Page 1: Lesson 14 6

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 14-6LESSON 14-6

Calculating Federal Income Tax and Completing a Work Sheet

Page 2: Lesson 14 6

2

LESSON 14-6CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

FEDERAL INCOME TAX EXPENSE FEDERAL INCOME TAX EXPENSE ADJUSTMENTADJUSTMENT page 427

Total of Income Statement Credit column $

500,253.10Less total of Income Statement Debit column

before federal income tax–

396,049.91Equals Net Income before Federal Income Tax $

104,203.19

Page 3: Lesson 14 6

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LESSON 14-6CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

CALCULATING FEDERAL INCOME TAXCALCULATING FEDERAL INCOME TAX page 428

Page 4: Lesson 14 6

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LESSON 14-6CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

1. Calculate the amount of federal income tax expense adjustment.

RECORDING THE FEDERAL INCOME RECORDING THE FEDERAL INCOME TAX ADJUSTMENTTAX ADJUSTMENT

22

33

33

11

11

page 429

2. Total and rule the Adjustments columns.

3. Extend account balances.

Page 5: Lesson 14 6

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LESSON 14-6CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

COMPLETING A WORK SHEETCOMPLETING A WORK SHEET

11 11

page 430

2244 3355

1. Total the Income Statement and Balance Sheet columns.

5. Rule double lines.

4. Calculate the column totals.

3. Extend the net income amount.

2. Calculate and enter the net income after federal income tax.

Page 6: Lesson 14 6

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LESSON 14-6CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

A COMPLETED 8-COLUMN A COMPLETED 8-COLUMN WORK SHEETWORK SHEET page 432

Page 7: Lesson 14 6

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LESSON 14-6CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

A 10-COLUMN WORK SHEETA 10-COLUMN WORK SHEET page 434-435

1. Trial balance

4466

22 33 55

5. Extend balances

2. Adjustments

3. Extend adjusted balances

4. Total, prove, and rule

6. Calculate net income; total, prove and rule

11