Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The information that follows pertains to Esther Food Products: a. At December 31, 2021, temporary differences were associated with the following future taxable (deductible amounts:

image text in transcribed
image text in transcribed
image text in transcribed
The information that follows pertains to Esther Food Products: a. At December 31, 2021, temporary differences were associated with the following future taxable (deductible amounts: Depreciation Prepaid expenses Warranty expenses $ 70,000 30,000 (12,000) b. No temporary differences existed at the beginning of 2021. c. Pretax accounting income was $115,000 and taxable income was $27.000 for the year ended December 31, 2021 d. The tax rate is 25%. Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2021 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculation General Journal Complete the following table given below to record income taxes for 2021. (Negative amounts should be entered with a minu Tax Rate Tax $ Recorded as $ 115,000 0 > 115,000 45% x = $ 51,750 Deferred tax liability Pretax accounting income Permanent differences No temporary differences Incomo subject to taxation Temporary Differences Depreciation Prepaid expenses Warranties Income taxable in current year > >> (70,000) (30,000) X 12,000 X 27,000 45% x = 45% X= 45 x = 45% S (31,500) X Deferred tax liability $ (13,500) Deferred tax liability $ 5,400 Deferred tax liability $ 12,150 Deferred tax liabdity X $ X Calculation General Journal > X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculation General Journal Prepare the appropriate journal entry to record income taxes for 2021. (If no entry is required for a transaction/event, sele "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 1 Income tax expense ferred tax asset Deferred tax liability Income tax payable 51,750 X 5,400 45,000 12,150

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

The Internal Auditing Handbook

Authors: K. H. Spencer Pickett

3rd Edition

0470518715, 978-0470518717

More Books

Students also viewed these Accounting questions