Accounting (Coursework Sample)

Student’s Name Professor Course Date of Submission Accounting Calculating the Company’s Trading Profit Adjusted for Tax Purposes After collecting all the sales receipts and information that have been recorded, checking on the cost of goods sold, and making all relevant materials available, the computation will be executed. For the income statement to be prepared, the following steps are taken into consideration: the accountant should analyze the firm's revenues, report the analyzed revenue, generate and determine the cost of goods sold, gross margin should be determined, and taxes should be deducted. These include operating expenses, income to be calculated, and tax to be solved. Calculate the net income and finally finish the income statement problem. The income statement has primarily looked at four components: gains or losses, expenses, and revenues (Osadchy et al., 2018). There is no differentiation between non-cash and cash, which is sales on credit versus actual sales in cash. Sales less the cost of goods sold, administrative, general, and selling expenses, interest rate, depreciation, interest, taxes, and all other expenses yields net income. Revenue in the income statement is described as the cash received or realized from the sale of the company's product or services before subtracting the expenses (Misun, 2017). It contains two types of income statements; * Single-step income statement It lists all the expenses in one column and the cost of goods sold. It does not separate the categories, such as the operating cost of goods sold. * Multiple-step income statement All operational revenues are separated from ones that are not operational; operating expenses are separated from those that are not operational. Users of the single steps are the sole proprietors, but we accompany them using multiple income statement format. Computation of the company trading profit ‘ Profit = sales minus purchases = 840,000-440,000 = 400,000 The company made a trading profit of Euro 400,000 on 31/03/21; this shows that the company is doing well in the long run. Since the sales yield more than the purchases. Profit is an excellent indicator that the business is in good shape or progress; profit is the residual earnings of the business after all the expenses have been accounted for in that particular period. Sales and profit are crucial elements of the income statements; purchases are also important. This is the profit the organization achieves by selling short-term products, as seen in the above ORANGE corporation. Calculation of Total Taxable Profits for the 2020 Tax Year Trading profits from the income e provides relative incomes that should be taxed. As a tax consultant, the following steps are always relevant when formulating the company's total taxable income. Different types of income need to be identified to calculate total taxable profits (Linnga,2017). ORANGE Ltd has different forms of income that are used to calculate the total taxable profits for the year 2020. The profits that willORANBE LTD will use are shown in the income statement. The company should be able to identify the total income from the company's financial statement and formulate the accurate turnover from the sales made in the year. The specified tax period should be clearly stated to avoid any cases that may lead to wrong provisions in estimating the taxable profit. The tax period always takes an entire year, which is a whole twelve months, where accounts are typically prepared within that same year, meaning that taxes for ORANGE will be paid within that year(Misun,2017). Computation of taxable profits is always dealt with by determining the total income, formulating unearned income, computing adjusted gross income, and making any deductions that may arise from the notes provided. The total taxable profits are equal to Gross total Income – total exemptions – and total deduction. Total taxable profits = gross profit – allowable expenses = 400,000- 305,000 =95,000 Calculation of Corporate Tax Payable by ORANGE Limited The taxes are paid from the ORANGE Ltd income; the corporation should file a corporation tax, and the rate should be followed to pay those taxes. The amount of the tax due should be estimated if the corporations owe the taxes, and the tax will be computed and paid by tax regulations of the host country; if the shareholders are supposed to pay taxes, the tax amount should come from the dividends at a particular period, but if it is the corporation who are paying for the taxes the amount to be taxed is the income tax of the corporation(Misun, 2017). Shareholders are taxed when paying dividends. Computation of corporate tax payable, use the balance of different taxes received, ensure the balances are included in the employer's contribution, for example, social security, add the above total to the sales tax payable account, other taxes and state tax income, write the final amount down, place the amount under tax payable of the statement of financial position. As an accounting consultant, I will advise ORANGE Ltd to deduct the prepaid expenditure to avoid calculating it and assume they have made a loss in the long run; instead, they should carry forward the same amount. The firm should meet all the requirements of standards and professional bodies. Accounting for the taxes should be taken into effect and executed to reach the desired objectives of the management and shareholders(Obaid,2017) ORANGE LTD ADJUSTED INCOME STATEMENT ...