7 SECTION 2 The following information relates to Perdue Corporation, which began operations on 1/1/VR10 1) The 12/31/YR10 balance sheet reflects an Unearned Revenue Account of $8.000. This account will be settled in YR11 and YR12 in equal amounts of $4,000 in each year. 21 Prepaid Insurance on 12/31/YR10 is $45,000. This insurance coverage will be used equally in YR11, YR12, and YR13 3) The 12/31/YR10 Accounts Payable balance is $60.000. The firm plans on paying this balance equally in YR11 and YR12. 4) The 12/31/YR10 Receivable account of $40.000 will be collected in equal amounts during YR11. YR12. YR13, and YR14. 51 Purdue purchased an asset for $150,000 on 1/1/VR10. Temporary differences stemming from this fixed asset will start reversing in YR13. The depreciation schedules for financial purposes and tax purposes are as follows: VR11 YR12 YR13 VR10 VR14 Financial Depreciation 30,000 30.000 30.000 30.000 30,000 Tax Depreciation 50,000 40,000 30,000 20,000 10,000 Pretax Financial Income in YR10 is $100,000. Enacted tax rates are as follows: 30% in YR10, 40% in YR11, and 50% in YR12 and beyond. SECTION 2-Q1 Calculate Taxes Payable for YR10 by filling in the following table. Do NOT use a thousands separator "If the answer is zero, you must answer "0" Do not leave it blank for credit Add or Subtract? Accounts Amounts Type add or subtract below Pretax Financial Income 100000 1) Unearned Revenues 2) Prepaid Insurance 3A/P 4)A/R 5) Fixed Asset CV Taxable Income Tax Rate Taxes Payable Question 8 SECTION 2-Q2 Prepare a Tax Table for YR10 by filling out the table below. *Do NOT use a thousands separator. "Do not include % in the answer. *If the cell is unaffected, you must put "NA" in the cell. Do not leave it blank for credit. B/S Evidence Future Taxable or Deductible Temporary Difference Rate Unearned Revenues Unearned Revenues Prepaid Insurance Prepaid Insurance A/P A/P A/R A/R Fixed Asset CV Total % % % % % % % % % DTLC DTLLT DTAC DTAL Question 9 SECTION 2-Q3 Prepare journal entries for YR10 by filling in the table below. Please copy and paste the account names from the list below. Tax Expense Taxes Payable DTLcurrent DTLlongterm DTAcurrent DTAlongterm *Do NOT use a thousands separator. Account to be debited Account to be credited DR CR