Ac313 Single temporary difference originates each year for four years.
Problem 16-1 Single temporary difference originates each year for four years (L016-1) Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected, Service revenue, collections, and pretax accounting income for 2017-2020 are as follows: 2017 2018 2019 2020 Service Revenue $718,000 830,000 795,000 780,000 Collections $698,000 840,000 775.000 805,000 Pretax Accounting Income $ 270.000 335,000 305,000 285.000 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%. (Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017 2020.) Required: 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup's 2019 income taxes and Alsup's 2020 income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (e.g. 150,000 should be entered as 150).) View transaction list Tournal entry worksheet 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup's 2019 income taxes and Alsup's 2020 income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (e.g. 150,000 should be entered as 150).) View transaction list Journal entry worksheet 1 2 3 Record 2018 income taxes. Note: Enter debits before credits Event General Journal Debit Credit 1 income tax expense Deferred tax liability Income tax payable Record entry Clear entry View general Journal 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup's 2019 income taxes and Alsup's 2020 income taxes. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in thousands (e.g. 150,000 should be entered as 150).) View transaction list Journal entry worksheet Record 2019 income taxes. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup's 2019 income taxes and Alsup's 2020 income taxes. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in thousands (e.g. 150,000 should be entered as 150).) View transaction list Journal entry worksheet
