Actual quarterly earnings and quarterly estimates of annual earnings for Sloan Company for the year ended December

Question:

Actual quarterly earnings and quarterly estimates of annual earnings for Sloan Company for the year ended December 31, 2024 are as follows:image

The combined state and federal tax rate for 2024 is 30%. Sloan Company estimated it would have permanent differences between accounting income and taxable income during 2024. Each quarter’s estimate of these annual differences is provided in the following table:image

The actual amount of permanent differences for 2024 were environmental penalties, $14,000 dividend exclusion, $55,000.


Required:
Prepare journal entries to record Sloan Company’s 2024 quarterly income tax provisions.

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Advanced Accounting

ISBN: 9781119794653

8th Edition

Authors: Debra C. Jeter, Paul K. Chaney

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