35% in all subsequent years. a. Prepare a schedule to determine deferred tax balances on December 31, for Year 1 through Year 5. Note: Do not use negative signs with your answers. b. Record the income tax journal entry on December 31 of Year 1. - Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). 35% in all subsequent years. a. Prepare a schedule to determine deferred tax balances on December 31, for Year 1 through Year 5. Note: Do not use negative signs with your answers. b. Record the income tax journal entry on December 31 of Year 1. - Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero)