John Hicks Company reports the following revenues and expenses in its pretax financial income for the year ended December 31, 2016: Revenues total $229,600 and expenses total $160,100. The tax rate enacted for 2016 is 35%, but in 2015 Congress enacted a 30% rate for 2017 and future years. Differences between the 2016 income statement and tax return are listed below: Warranty expense accrued for financial reporting purposes amounts to $5,000. Warranty deductions per the tax return amount to $13,900. Depreciation deducted for financial reporting exceeded depreciation deducted for income taxes by $11,000. Percentage depletion deducted for income taxes exceeded cost depletion deducted for financial reporting by $15,600. Legal expense of $9,800 was deducted for financial reporting; it will be deducted for income taxes when paid in a future year. John Hicks expects its percentage depletion to exceed its cost depletion in each of the next 5 years by the same amount as in 2016. At the end of 2016, the other three expenses are expected to result in total future taxable or deductible amounts as follows: Totals: Future Taxable Amounts Depreciation expense difference $63,000 Future Deductible Amounts Warranty expense difference 48,400 Legal expense difference 9,800 At the beginning of 2016, Quick had a deferred tax liability of $22,200 related to the depreciation difference and a deferred tax asset of $17,190 related to the warranty difference.

Prepare the journal entries to record transactions as required Journal Entries tax related transactions DateTransactions and Accounts Debit Credit Provide a one line explanation for the reason why the journal entry has been made You may add as many rows as needed to prepare your journal entries Income Statement-Tax Expense Amounts