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In 2020, argentina company received an advance payment of P1,000,000, which was subject to tax but not reported in accounting income until 2021. The income
In 2020, argentina company received an advance payment of P1,000,000, which was subject to tax but not reported in accounting income until 2021.
The income statement and tax return showed the following:
Income before tax per income statement:
2020 - 6,000,000
2021 -9,000,000
Income before tax per tax return:
2020 - 7,000,000
2021 - 8,000,000
Income tax rate
2020 - 30%
2021 - 30%
Required:
1. Prepare journal entries to record the income tax and deferred tax for 2020 and 2021.
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