Question
The pretax financial income (or loss) figures for Windsor Company are as follows. 2017 82,000 2018 (45,000 ) 2019 (40,000 ) 2020 123,000 2021 97,000
The pretax financial income (or loss) figures for Windsor Company are as follows.
2017 | 82,000 | ||
---|---|---|---|
2018 | (45,000 | ) | |
2019 | (40,000 | ) | |
2020 | 123,000 | ||
2021 | 97,000 |
Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
2017
enter an account title to record carryback
enter a debit amount
enter a credit amount
enter an account title to record carryback
enter a debit amount
enter a credit amount
2018
enter an account title to record carryforward
enter a debit amount
enter a credit amount
enter an account title to record carryforward
enter a debit amount
enter a credit amount
2019
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
2020
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a debit amount
2021
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a credit amount
enter a debit amount
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