Problem 16-1 Single temporary difference originates each year for four years

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 20152018 are as follows:

	Service Revenue			Collections			Pretax Accounting Income
2015	$	687,000		$	662,000		$	230,000
2016		790,000			795,000			295,000
2017		755,000			725,000			265,000
2018		740,000			760,000			245,000

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.

(Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 20152018.)

Required:

1.	Prepare the appropriate journal entry to record Alsup's 2016 income taxes, Alsups 2017 income taxes and Alsups 2018 income taxes.