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Check my work Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement,Journal entry worksheet 2 3 Record 2021 income taxes. Note: Enter debits before credits. Event General Journal Debit Credit RJournal entry worksheet < 1 2 3 Record 2022 income taxes. Note: Enter debits before credits. Event General Journal Debit CredJournal entry worksheet < 1 2 Record 2023 income taxes. Note: Enter debits before credits. Event General Journal Debit Credit

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Computation of Taxable Income and Tax Payable - Alsup Consulting
Particulars 2021 2022 2023
Pre tax accounting income $       268,000 $       236,000 $         208,000
Add: Service revenue collection $       786,000 $       710,000 $         728,000
Less: service revenue as per books $       758,000 $       718,000 $         724,000
Taxable income $       296,000 $       228,000 $         212,000
Income Tax (25%) $         74,000 $         57,000 $           53,000

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Computation of Temporary differences - Alsup Consulting
Particulars 2020 2021 2022 2023
Beginning service revenue receivables $                 -   $         40,000 $           20,000 $        50,000
Service Revenue $       668,000 $       758,000 $         718,000 $      724,000
Collection $       628,000 $       786,000 $         710,000 $      728,000
ending service revenue receivables $         40,000 $         12,000 $           28,000 $        46,000
Taxable (Deductible Temporary differences) $         40,000 -$         28,000 $           16,000 $        18,000
Deferred tax liability (reversal) for the year $         10,000 -$           7,000 $             4,000 $          4,500
Journal Entries - Alsup Consulting
Date Particulars Debit (In '000) Credit (In '000)
31-Dec-21 Income tax expense Dr $         10,000
Deferred tax liability Dr $           7,000
        To Income tax payable $           17,000
(To record income tax and deferred taxes)
31-Dec-22 Income tax expense Dr $         61,000
        To Income tax payable $           57,000
        To Deferred tax liability $             4,000
(To record income tax and deferred taxes)
31-Dec-23 Income tax expense Dr $         48,500
Deferred tax liability Dr $           4,500
        To Income tax payable $           53,000
(To record income tax and deferred taxes)
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