Kent Land Management reported pre tax income and related information as outlined below for 2018 through 2020 (all items are in thousands) 1) EFFECTIVE TAX RATE CALCULATION 2018 2019 4) JOURNAL ENTRIES 2020 DR CR Pre-tax Income 2018 145,000 10,000 4,000 Pre-tax income Municpal Bond interest Meals & Entertainment Federal Penalites 2019 145,000 12,000 6,000 30,000 Description Income Tax Expense ense Deferred Taxes Income Tax Payable 2020 145,000 18,000 8,000 10,000 Period 2018 2018 2018 Total Permanent Differences Muni Meals Penalties Subtotal DR CR Period 2019 Installment income Enacted Tax Rate 20,000 21% 20,000 21% Description Income Tax Expense Deferred Taxes Income Tax Payable 21% 2019 Adjusted Pre-tax Income NOTES: 1) Installment Income: Sale of property for $40 million completed in 2018 but cash collected in 2019 and 2020. 2019 Total - - Enacted Tax Rate DR CR Tax Expense 2) Meals & Entertainment: IRS allows only 50% of meals & entertainment expenses to be deducted for income tax purposes. REQUIREMENTS $ - $ - $ . #DIV/0!' #DIV/0! '#DIV/0! Description Income Tax Expense Deferred Taxes Income Tax Payable Period 2020 2020 2020 Total Effective Tax Rate 5) T-ACCOUNTS 1) Calculate the Effective Interest Rate: Calculate the effective interest rate 2) & 3) DEFERRED TAXES & INCOME TAXES PAYABLE for all years. Remember to take into account the permanent differences ' 2018 2019 2020 and list them out. Deferred Taxes DR CR Income Tax Payable DR CR 2) Calculate Deferred Taxes & Income Tax Payable: Calculate the deferred taxes and related Income Tax Payable for each year. 2018 2018 Pre-tax Income Permanent Differences Temporary Difference Taxable income-Tax Returr 2019 2019 3) Calculate/Determine Income Tax Expense: Calculate/ Determine Income tax expense for each year. - - - 2020 2020 Total Total Enacted Tax Rate 4) Record journal Entries: Record the journal entries for each period. Tax Payable $ - $ Check 5) Update T Accounts: Record journal entries to the correct T-Accounts for each period. $ $ - . Income Tax Expense DR CR DR CR Deferred Taxes . 6) Complete Provision for Income Tax Footnote: Complete Provision for Income Taxes footnote for all periods. 2018 2019 2020 Total 2018 2019 2020 Total 7) Complete Deferred Taxes: Complated deferred tax footnote for all DEFERRED TAX LEGEND Calculated field Data Input 2019 2020 2018 2019 2020 6) PROVISION FOR INCOME TAX 2018 Current Provision Deferred Total Provision $ - Deferred Tax Assets Deferred Tax Liabilities Net Deferred Tax $ - $ - $ - $ - $ Kent Land Management reported pre tax income and related information as outlined below for 2018 through 2020 (all items are in thousands) 1) EFFECTIVE TAX RATE CALCULATION 2018 2019 4) JOURNAL ENTRIES 2020 DR CR Pre-tax Income 2018 145,000 10,000 4,000 Pre-tax income Municpal Bond interest Meals & Entertainment Federal Penalites 2019 145,000 12,000 6,000 30,000 Description Income Tax Expense ense Deferred Taxes Income Tax Payable 2020 145,000 18,000 8,000 10,000 Period 2018 2018 2018 Total Permanent Differences Muni Meals Penalties Subtotal DR CR Period 2019 Installment income Enacted Tax Rate 20,000 21% 20,000 21% Description Income Tax Expense Deferred Taxes Income Tax Payable 21% 2019 Adjusted Pre-tax Income NOTES: 1) Installment Income: Sale of property for $40 million completed in 2018 but cash collected in 2019 and 2020. 2019 Total - - Enacted Tax Rate DR CR Tax Expense 2) Meals & Entertainment: IRS allows only 50% of meals & entertainment expenses to be deducted for income tax purposes. REQUIREMENTS $ - $ - $ . #DIV/0!' #DIV/0! '#DIV/0! Description Income Tax Expense Deferred Taxes Income Tax Payable Period 2020 2020 2020 Total Effective Tax Rate 5) T-ACCOUNTS 1) Calculate the Effective Interest Rate: Calculate the effective interest rate 2) & 3) DEFERRED TAXES & INCOME TAXES PAYABLE for all years. Remember to take into account the permanent differences ' 2018 2019 2020 and list them out. Deferred Taxes DR CR Income Tax Payable DR CR 2) Calculate Deferred Taxes & Income Tax Payable: Calculate the deferred taxes and related Income Tax Payable for each year. 2018 2018 Pre-tax Income Permanent Differences Temporary Difference Taxable income-Tax Returr 2019 2019 3) Calculate/Determine Income Tax Expense: Calculate/ Determine Income tax expense for each year. - - - 2020 2020 Total Total Enacted Tax Rate 4) Record journal Entries: Record the journal entries for each period. Tax Payable $ - $ Check 5) Update T Accounts: Record journal entries to the correct T-Accounts for each period. $ $ - . Income Tax Expense DR CR DR CR Deferred Taxes . 6) Complete Provision for Income Tax Footnote: Complete Provision for Income Taxes footnote for all periods. 2018 2019 2020 Total 2018 2019 2020 Total 7) Complete Deferred Taxes: Complated deferred tax footnote for all DEFERRED TAX LEGEND Calculated field Data Input 2019 2020 2018 2019 2020 6) PROVISION FOR INCOME TAX 2018 Current Provision Deferred Total Provision $ - Deferred Tax Assets Deferred Tax Liabilities Net Deferred Tax $ - $ - $ - $ - $