Nix’it company’s ledger on july 31, its fiscal year-end, includes the following selected accounts that have normal balances (nix’it uses the perpetual inventory system). merchandise inventory $ 37,800 sales returns and allowances $ 6,500 retained earnings 115,300 cost of goods sold (excluding shrinkage) 105,000 dividends 7,000 depreciation expense 10,300 sales 160,200 salaries expense 32,500 sales discounts 4,700 miscellaneous expenses 5,000 a physical count of its july 31 year-end inventory discloses that the cost of the merchandise inventory still available is $35,900. prepare journal entries to close the balances in temporary revenue and expense accounts. remember to consider the entry for shrinkage.

If a company’s employees are angry about their work, a visiting auditor may also become agitated, illustrating the power of

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.

What two things do you consider when evaluating the time value of money