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 2020-2023 are as follows: 2920 2921 2922 2023 Service Revenue $784, eee 794, eae 754,00 760, eee Collections $664, eee 822,000 746,00 764, eae Pretax Accounting Income $230, eee 384, eee 272, eee 244,00 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%. (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020- 2023.) Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 income taxes. (If no entry is requlred for a transaction/event, select "No journal entry required" In the first account fleld. Enter your answers in whole dollars.) View transaction list X 1 Record 2021 income taxes. 2 Record 2022 income taxes. 3 Record 2023 income taxes. Credit Note : = journal entry has been entered Record entry Clear entry View general journal Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) Subscription revenue recognized (earned) Subscription payments received in cash 2021 $380 420 2022 $380 360 2023 $ 340 380 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future. Required: 1. What is the balance sheet account that gives rise to a temporary difference in this situation? 2. Determine the amount of deferred subscription revenue at the end of each year. (Enter all amounts as positive values.) 3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? (Enter all amounts os positive values.) 1. What is the balance sheet account that gives rise to a temporary difference in this situation? Beginning of 2021 End of 2021 Amount of deferred subscription revenue End of 2022 End of 2023 2. 3. In 2021. DFS Medical Supply collected rent revenue for 2022 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy the rental property. The deferred portion of the rent collected in 2021 amounted to $380,000 at December 31, 2021. DFS had no temporary differences at the beginning of the year. Required: Assuming an income tax rate of 25% and 2021 income tax payable of $930.000. prepare the journal entry to record income taxes for 2021. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.) View transaction list 1 Record 2021 income taxes. Credit Note : = journal entry has been entered Record entry Clear entry View general journal
