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The following information relates to Perdue Corporation, which began operations on 1/1/YR10. 1) The 12/31/YR10 balance sheet reflects an Unearned Revenue Account of $8,000. This
The following information relates to Perdue Corporation, which began operations on 1/1/YR10. 1) The 12/31/YR10 balance sheet reflects an Unearned Revenue Account of $8,000. This account will be settled in YR11 and YR12 in equal amounts of $4,000 in each year. 2) Prepaid Insurance on 12/31/YR10 is $45,000. This insurance coverage will be used equally in YR11, YR12, and YR13. 3) The 12/31/YR10 Accounts Payable balance is $60,000. The firm plans on paying this balance equally in YR11 and YR12. 4) The 12/31/YR10 Receivable account of $40,000 will be collected in equal amounts during YR11, YR12, YR13, and YR14. 5) Purdue purchased an asset for $150,000 on 1/1/YR10. Temporary differences stemming from this fixed asset will start reversing in YR13. The depreciation schedules for financial purposes and tax purposes are as follows: YR10 YR11 Financial Depreciation 30,000 Tax Depreciation 50,000 YR12 YR13 30,000 30,000 30,000 30,000 40,000 30,000 20,000 10,000 YR14 Pretax Financial Income in YR10 is $100,000. Enacted tax rates are as follows: 30% in YR10, 40% in YR11, and 50% in YR12 and beyond. SECTION 2 - Q1 SECTION 2-Q3 Prepare journal entries for YR10 by filling in the table below. Please copy and paste the account names from the list below. Tax Expense Taxes Payable DTLcurrent DTLlongterm DTAcurrent DTAlongterm * Do NOT use a thousands separator. Account to be debited Account to be credited DR CR
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