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I got all the numbers right accept income tax payable in journal entry 1. I don't know what I'm doing wrong. George Young Industries (GYD
I got all the numbers right accept income tax payable in journal entry 1. I don't know what I'm doing wrong.
George Young Industries (GYD acquired industrial robots at the beginning of 2015 and added them to the company's assembly process. During 2018, management became aware that the $27 million cost of the machinery was inadvertently recorded as repair expense on GYI's books and on its Income tax return. The industrial robots have 10-year useful lives and no material salvage value This class of equipment is depreclated by the stralght-Iine method for financial reporting purposes and for tax purposes tt is considered to be MACRS 7 year property Cost deducted over 7 years by the modified accelerated recovery system as follows 0.53 points 2015 385,838 661,230 472,238 337,238 241,118 240,8468 241,118 2822 128.420 Totals $2,7ee, eee 2816 2817 2018 2819 282e 2821 The tax rate is 40% for all years involved. Required: 1. & 3. Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2018 depreclation. (If no entry is requlred for a transaction/event, select "No Journal entry requilred" In the flrst account fleld.) 3 Answer is not complete. Debit Credit No Event General Journal Equipment 2.700.000 Accumulated depreciation Retained earnings income tax payable 810,000 1.134.000 758.000 X 270.0000 expense 270.000 Accumulated deprec aton 20 HW ired industrial robots at the beginning of 2015 and added them to the company's assembly George Young Industries (GYI) acquired industrial robots at the be process. During 2018, management became aware that the $2.7 million cost of the machinery was inadvertently recorded as repair expense on GYI's books s and on its income tax return. The industrial robots have 10-year useful lives and no material salvage value. t is depreciated by the straight-line method for financial reporting purposes and for tax purposes it is 0.53 points considered to be MACRS 7-year property. Cost deducted over 7 years by the modified accelerated recovery system as follows: eBook 2815 385,830 472, 230 241,110 661,230 2816472,230 Print 2018 2819337,23e 240, 840 2828 2021 2922241,110 Totals $2,700,000 2822120,420 The tax rate is 40% for all years involved. Required: 1. & 3. Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2018 depreciation. (if no entry is required for a transection/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Help Save &B 20 HW Ch The tax rate is 40% for all years involved Required: 1. & 3. Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2018 depreciation. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 053 points View transaction list eBook Print Journal entry worksheet 2 Record the correcting entry Note: Enter debits bafore credits General Journal Debit Credit : Equipment 2,700,000 Accumulated depreciation Retained earnings Income tax payable 810 1,134 000 756.000 Record entry Clear entry View general journalStep by Step Solution
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