The information that follows pertains to Julia Company: Pretax accounting income
ID: 2422088 • Letter: T
Question
The information that follows pertains to Julia Company:
Pretax accounting income was $59,300 and taxable income was $7,300 for 2016.
Prepare the journal entry to record the tax provision for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record the income taxes.
The information that follows pertains to Julia Company:
(a.) Temporary differences for the year 2016 are summarized below. Expenses deducted in the tax return, but not included in the income statement: Depreciation $53,000 Prepaid expense 7,300 Expenses reported in the income statement, but not deducted in the tax return: Warranty expense 8,300 (b.) No temporary differences existed at the beginning of 2016. (c.)Pretax accounting income was $59,300 and taxable income was $7,300 for 2016.
(d.) There were no permanent differences. (e.) The tax rate is 35%.Explanation / Answer
DR CR Income tax expense (to balance) 20755 Deferred tax asset ($8,300 x 35%) 2905 Deferred tax liability ($60,300 x 35%) 21105 Income tax payable ($7,300 x 35%) 2555
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.