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6 this is an updated picture of this question it should be on there please check tax rates are 40% and 45% Taxable income and
6
this is an updated picture of this question it should be on there please check
tax rates are 40% and 45%
Taxable income and pretax financial income would be identical for Skysong Co.except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared. 2020 2021 $221,000 $94.900 Taxable income Excess of revenues over expenses (excluding two temporary differences) Installment gross profit collected Expenditures for warranties Taxable income 2019 $163,000 8,400 (5,200 $166,200 8,400 8,400 (5.200) (5,200) $224,200 $98,100 2019 2020 2021 $163,000 Pretax financial income Excess of revenues over expenses (excluding two temporary differences) Installment gross profit recognized Estimated cost of warranties $221,000 $94.900 25.200 -0 O (15,600) 0 -0 Income before taxes $172,600 $221.000 $94.900 Date Account Titles and Explanation Debit Credit Taxable income and pretax financial income would be identical for Skysong Co, except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared. 2019 2020 2021 $163.000 $221,000 $94.900 Taxable income Excess of revenues over expenses (excluding two temporary differences) Installment gross profit collected Expenditures for warranties Taxable income 8.400 8.400 8.400 15.200 (5.200 (5,200) $166.200 $224200 $98.100 2019 2020 2021 $163.000 $221.000 $94.900 Pretax financial income Excess of revenues over expenses (excluding two temporary differences) Installment gross proht recognized Estimated cost of warranties Income before taxes 0 -0 25,200 (15,600 $172,600 7 -0 0 $221.000 $94.900 The tax rates in effect are 2019,40% 2020 and 2021,45%. All tax rates were enacted into low on January 1, 2019. No deferred income taxes existed at the beginning of 2019. Taxable income is expected in all future years, Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Current Attempt in Progress Taxable income and pretax financial income would be identical for Skysong Co. except for its treatments of gross proht on installment sales and estimated costs of warranties. The following income computations have been prepared. 2020 2021 2019 $163.000 $221.000 $94.900 Taxable income Excess of revenues over expenses (excluding two temporary differences) Installment gross profit collected Expenditures for warranties Taxable income 8.400 8,400 8.400 (5.200) (5.200) (5,200) $166.200 $224.200 $98.100 2019 2020 2021 $163.000 $221.000 $94.900 Pretax financial income Excess of revenues over expenses (excluding two temporary differences) Installment gross proht recognized Estimated cost of warranties Income before taxes 25.200 0 0 0 0 (15,600 $172,600 $221,000 $94.900 The tax rates in effect are 2019,40%: 2020 and 2021,45%. All tax rates were enacted into tow on January 1, 2019. No deferred income taxes existed at the beginning of 2019. Taxable income is expected in all future years. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019 2020 and 2021 (Credit occount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Step by Step Solution
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