The following is available for the taxable and pretax GAAP financial income of Film Company for 2010:

Interest on municipal securities included in net income in 2010 was $5,000. Depreciation recognized in the tax return exceeded that in the financial statement income statement by $100,000. This temporary difference will reverse evenly during 2011 and 2012. The company has accrued revenue of $10,000 in 2010 for financial reporting purposes, however the tax laws allow them to deferred showing this as a taxable revenue until 2011 when the cash will be collected. Film's pretax GAAP financial net income for 2010 was $300,000 and the company's income tax rate was 35%. This rate is scheduled to change to 40% for 2011 and 2012.

In 2011 the company had a downturn and they had a ($200,000) GAAP financial accounting loss for that year. The company had no new originating timing differences during 2011, but they did experience the two timing reversals that were projected when completing the 2010 deferred tax schedule. Assume the company will have adequate operating income in 2012 to cover any excess carry forwards that cannot be absorbed on the deferred tax schedule.

A. Prepare below a deferred income tax schedule for 2011.

B. Prepare the general journal entry to accrue income taxes for 2011.