LESSON 14 6 Calculating Federal Income Tax and
- Slides: 7
LESSON 14 -6 Calculating Federal Income Tax and Completing a Work Sheet CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 14 -6
2 FEDERAL INCOME TAX EXPENSE ADJUSTMENT Total of Income Statement Credit column Less total of Income Statement Debit column before federal income tax Equals Net Income before Federal Income Tax CENTURY 21 ACCOUNTING © Thomson/South-Western page 427 $ 500, 253. 10 – 396, 049. 91 $ 104, 203. 19 LESSON 14 -6
3 CALCULATING FEDERAL INCOME TAX CENTURY 21 ACCOUNTING © Thomson/South-Western page 428 LESSON 14 -6
4 RECORDING THE FEDERAL INCOME TAX page 429 ADJUSTMENT 3 1 1 1. Calculate the amount of federal income tax expense adjustment. 2 3 2. Total and rule the Adjustments columns. 3. Extend account balances. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 14 -6
5 COMPLETING A WORK SHEET page 430 1 2 1. 2. 3. 4. 5. 4 1 5 3 Total the Income Statement and Balance Sheet columns. Calculate and enter the net income after federal income tax. Extend the net income amount. Calculate the column totals. Rule double lines. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 14 -6
6 A COMPLETED 8 -COLUMN WORK SHEET CENTURY 21 ACCOUNTING © Thomson/South-Western page 432 LESSON 14 -6
7 A 10 -COLUMN WORK SHEET 1 2 3 4 1. 2. 3. 4. Trial balance Adjustments Extend adjusted balances Total, prove, and rule CENTURY 21 ACCOUNTING © Thomson/South-Western page 434 -435 5 6 5. Extend balances 6. Calculate net income; total, prove and rule LESSON 14 -6
