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Lesson 14 6
1.
LESSON 14-6 Calculating Federal Income
Tax and Completing a Work Sheet CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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 © 2009 South-Western, Cengage Learning 2 page 427 $ 500,253.10 –396,049.91 $ 104,203.19 LESSON 14-6
3.
3 CALCULATING FEDERAL INCOME
TAX CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 428 LESSON 14-6
4.
4 RECORDING THE FEDERAL
INCOME TAX ADJUSTMENT 3 1 1 1. Calculate the amount of federal income tax expense adjustment. 2 page 429 3 2. Total and rule the Adjustments columns. 3. Extend account balances. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 14-6
5.
5 COMPLETING A WORK
SHEET page 430 1 2 1. 2. 3. 4. 5. 4 1 5 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 © 2009 South-Western, Cengage Learning LESSON 14-6 3
6.
A COMPLETED 8-COLUMN WORK
SHEET CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 page 432 LESSON 14-6
7.
7 A 10-COLUMN WORK
SHEET 1 2 3 4 1. 2. 3. 4. Trial balance Adjustments Extend adjusted balances Total, prove, and rule page 434-435 5 6 5. Extend balances 6. Calculate net income; total, prove and rule CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 14-6
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