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2. Simmental had $72,000 of book income before tax in 2018, their first year of operations....

2. Simmental had $72,000 of book income before tax in 2018, their first year of operations. The only difference between book and tax income was their calculation of cost of goods sold. Book cost of goods sold was $186,000 and tax cost of goods sold was $212,000. The income tax rate is 30% in all years. Prepare the journal entry for income taxes.

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Journal Entry for Income laxes Credit e dax Expenses IoLome tares payable e$13,800 313,300 2 Incone lax payable 13.800 Cash culation of Income tax Books Income before tax 72.000 186,000 Reverse workin 4Cost of goadt Sold Total R t 258,000 → $25 8.ooo old 212, 00O Iocome befotax 46,000 Tax @30%-12 800 Cost of gondk Sald th a reductin o business Inome to arrive at the darable Income In given ease Cost of се mcome mconme

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