I need help with the adjusting entries for tax issues.

Tax information and implications

$1,500 in meal and entertainment expenses show as a permanent difference for tax. Prepare the necessary adjusting entry.

The company uses straight line depreciation for book and MACRS depreciation for the tax return

MACRS depreciation was $209,301 higher than book. Prepare the adjusting entry for the deferred tax.

There have been recent tax structure changes the could impact the company. Peyton Approved has been a C Corp since the beginning of these changes. Peyton provides for taxes at 25% of pretax income (20% Federal, 5% state).

Adjusting entries Dr Cr 265,000.00 Cash Marketable Securities Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Land Building Baking Equipment PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Dr Cr 1.488.999.34 5,500,000.00 7,092.495.88 1.605.098.52 128,152.63 71,877.07 207,834.14 17.647.42 250,000.00 1.250,000.00 2.254.140.00 328.282.00 Accumulated Depreciation Patent Accounts Payable Wages Payable Interest Payable Current Portion of Bonds Payable Income Taxes Currently Payable Accrued Pension Liability Accrued Employees Health Insurance Lease Liability 1,555,212.85 250.203.31 21.888.22 1.000.000.00 1,042,118.16 209,301.00 4.000.000.00 500,000.00 1.750,000.00 2.213.122.59 Deferred Tax Liability Bonds Payable Preferred Stock Common Stock Beginning Retained earnings Dividends - Preferred Dividends - Common Bakery Sales Merchandise Sales Cost of Goods Sold - Baked Cost of Goods Sold - Mercha Rent Expense Wages Expense 50.000.00 5,250,000.00 33.881,157.15 124.795.80 10.954.907.38 88.994.79 1,576,731.95 2.604,526.23 Misc. Supplies Expense Repairs and Maintenance Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Pension Expense Retired Employees Health Ins. Patent Amortization 263,224.56 47,353.05 211,757.65 141.171.08 634,520.00 112.937.69 160.413.49 484.703.27 50.821.34 Unrealized Gain/(Loss) on Marketable Securities Held for Sale 265.000.00 4,168.472.62 Income Taxes Deffered Tax Expense 46,666.780.08 46.666.780.08 265,000.00 474,301.00