Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
thank you! In 2021, DFS Medical Supply collected rent revenue for 2022 tenant occupancy. For income tax reporting. the rent is taxed when collected. For
thank you! In 2021, DFS Medical Supply collected rent revenue for 2022 tenant occupancy. For income tax reporting. the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy the rental property. The deferred portion of the rent collected in 2021 amounted to $330,000 at December 31,2021 . DFS had no temporary differences at the beginning of the year. Required: Assuming an income tax rate of 25% and 2021 income tax payable of $980,000, prepare the journal entry to record income taxes for 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669022173247d_94266902216c0734.jpg)
thank you!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started