Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The DeVille Company reported pretax accounting income on its income statement as follows: 2021 $ 450,000 2022 370,000 2023 440,000 2024 480,000 Included in the

The DeVille Company reported pretax accounting income on its income statement as follows:

2021 $ 450,000
2022 370,000
2023 440,000
2024 480,000

Included in the income of 2021 was an installment sale of property in the amount of $70,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $28,000 in 2022, $35,000 in 2023, and $7,000 in 2024. Included in the 2023 income was $30,000 interest from investments in municipal governmental bonds. The enacted tax rate for 2021 and 2022 was 40%, but during 2022, new tax legislation was passed reducing the tax rate to 25% for the years 2023 and beyond. Required: Prepare the year-end journal entries to record income taxes for the years 20212024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 21 - Cash From Operations Cons

Authors: Kate Mooney

1st Edition

0071719431, 9780071719438

More Books

Students also viewed these Accounting questions

Question

We are interviewing quite a few people, why should we hire you?

Answered: 1 week ago

Question

A price reduction, or no charge at all, if this is appropriate?

Answered: 1 week ago