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Options: Accounts Payable, Accounts Receivable, Cash, Deferred Income Tax, Deferred Income Tax - LCF, Income Tax Expense, Income Tax Payable, Income Tax Receivable On 1
Options: Accounts Payable, Accounts Receivable, Cash, Deferred Income Tax, Deferred Income Tax - LCF, Income Tax Expense, Income Tax Payable, Income Tax Receivable
On 1 January 20X7, Change Incorporated commenced business operations. At 31 December 20X9, the following information relates to Chang: Earnings (loss) before tax Tax rate (enacted in each year) Depreciation expense (asset cost was $650,000) Capital cost allowance Dividends received (nontaxable) Golf club dues 20x7 $314,900 30% 55,000 195,000 39,400 10,100 20x8 $ (466,100) 35% 55,000 20x9 $ 745,000 40% 55,000 83,000 62,500 10,100 62,500 10,100 Required: 1. Prepare journal entries to record tax for 20X7, 20X8, and 20X9. Assume that the loss carryforward usage in 20x8 is considered to be probable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record entry for current and deferred income tax benefit receivable. Note: Enter debits before credits. Date General Journal Debit Credit 20X8 Record entry Clear entry View general journal Journal entry worksheet Record entry for current and deferred income tax expense payable. Note: Enter debits before credits. Date General Journal Debit Credit 20X9 Record entry Clear entry View general journal Journal entry worksheet Record entry for current and deferred income tax benefit receivable. Note: Enter debits before credits. General Journal Debit Credit Date 20X9 Record entry Clear entry View general journal 2. Prepare journal entries to record tax for 20X7, 20x8, and 20X9. Assume that the loss carryforward usage in 20x8 is not considered to be probable but is considered to be probable in 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 3 4 Record entry for current and deferred income tax expense payable. Note: Enter debits before credits. Date General Journal Debit Credit 20X7 Record entry Clear entry View general journal Journal entry worksheet Record entry for current and deferred income tax benefit receivable. Note: Enter debits before credits. Date General Journal Debit Credit 20X8 Record entry Clear entry View general journal Journal entry worksheet Record entry for current and deferred income tax expense payable. Note: Enter debits before credits. Date General Journal Debit Credit 20X9 Record entry Clear entry View general journal Journal entry worksheet Record entry for current income tax benefit recoverable. Note: Enter debits before credits. Date General Journal Debit Credit 20X9 Record entry Clear entry View general journal On 1 January 20X7, Change Incorporated commenced business operations. At 31 December 20X9, the following information relates to Chang: Earnings (loss) before tax Tax rate (enacted in each year) Depreciation expense (asset cost was $650,000) Capital cost allowance Dividends received (nontaxable) Golf club dues 20x7 $314,900 30% 55,000 195,000 39,400 10,100 20x8 $ (466,100) 35% 55,000 20x9 $ 745,000 40% 55,000 83,000 62,500 10,100 62,500 10,100 Required: 1. Prepare journal entries to record tax for 20X7, 20X8, and 20X9. Assume that the loss carryforward usage in 20x8 is considered to be probable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record entry for current and deferred income tax benefit receivable. Note: Enter debits before credits. Date General Journal Debit Credit 20X8 Record entry Clear entry View general journal Journal entry worksheet Record entry for current and deferred income tax expense payable. Note: Enter debits before credits. Date General Journal Debit Credit 20X9 Record entry Clear entry View general journal Journal entry worksheet Record entry for current and deferred income tax benefit receivable. Note: Enter debits before credits. General Journal Debit Credit Date 20X9 Record entry Clear entry View general journal 2. Prepare journal entries to record tax for 20X7, 20x8, and 20X9. Assume that the loss carryforward usage in 20x8 is not considered to be probable but is considered to be probable in 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 3 4 Record entry for current and deferred income tax expense payable. Note: Enter debits before credits. Date General Journal Debit Credit 20X7 Record entry Clear entry View general journal Journal entry worksheet Record entry for current and deferred income tax benefit receivable. Note: Enter debits before credits. Date General Journal Debit Credit 20X8 Record entry Clear entry View general journal Journal entry worksheet Record entry for current and deferred income tax expense payable. Note: Enter debits before credits. Date General Journal Debit Credit 20X9 Record entry Clear entry View general journal Journal entry worksheet Record entry for current income tax benefit recoverable. Note: Enter debits before credits. Date General Journal Debit Credit 20X9 Record entry Clear entry View general journalStep by Step Solution
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