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Blossom Tar and Gravel Ltd . operates a road construction business. In its first year of operations, the company won a contract to build a
Blossom Tar and Gravel Ltd operates a road construction business. In its first year of operations, the company won a contract to build a road for the municipality of Cochrane West. It is estimated that the project will be completed over a threeyear period starting in June Blossom uses the percentageofcompletion method of recognizing revenue on its longterm construction contracts. For tax purposes, and in order to postpone the tax on such revenue for as long as possible, Blossom uses the completedcontract method allowed by the CRA. For the second year of operations, Blossom made progress on the construction of the road for the municipality. The account balances at December for the construction project and the accounting and tax balances of accounts related to the equipment used for construction follow. The balances at December are also listed. Blossom's tax rate was in and The enacted tax rate for and subsequent years was reduced to on September Income before income tax for the year ended December was $ and for December was $ Blossom reports under IFRS. Prepare the journal entry to record the effect of the change in the enacted tax rate. List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. Round answers to decimal places, eg
Blossom Tar and Gravel Ltd operates a road construction business. In its first year of operations, the company won a contract to build
a road for the municipality of Cochrane West. It is estimated that the project will be completed over a threeyear period starting in
June Blossom uses the percentageofcompletion method of recognizing revenue on its longterm construction contracts. For
tax purposes, and in order to postpone the tax on such revenue for as long as possible, Blossom uses the completedcontract method
allowed by the CRA. For the second year of operations, Blossom made progress on the construction of the road for the municipality.
The account balances at December for the construction project and the accounting and tax balances of accounts related to
the equipment used for construction follow. The balances at December are also listed.
Blossom's tax rate was in and The enacted tax rate for and subsequent years was reduced to on September
Income before income tax for the year ended December was $ and for December was
$ Blossom reports under IFRS. Prepare the journal entry to record the effect of the change in the enacted tax rate. List debit entry before credit entry. Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for
the account titles and enter for the amounts. Round answers to decimal places, eg
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