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    emerald_sangria's Avatar
    emerald_sangria Posts: 7, Reputation: 1
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    #1

    Oct 1, 2013, 04:25 PM
    Accounting: Current Liabilites
    New Wave Co. sold 10,000 annual subscriptions of Game Life for $75 during December 2012. These new subscribers will receive monthly issues, beginning in January 2013. In addition, the business had taxable income of $550,000 during the first calendar quarter of 2013. The federal tax rate is 40%. A quarterly tax payment will be made on April 7, 2013.

    Federal Income Taxes payable??
    Advances on magazine subscriptions??
    Total current liabilities??
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 2, 2013, 10:59 AM
    For Income Taxes Payable simply take your taxable income during the quarter times the federal tax rate.

    For advances on magazines subscriptions take the number of subscriptions sold and multiply it by the subscription price of $75 per subscription.
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