Question

Table income and praction betwor f or tro to n de conces. The following income Tance 2016 2017 2018 pens uding yances) Thement gross profe 5162.000 7,700 (4.800 $164.00 $23,000 2,700 4800) 233,900 .00 7,700 (4300) 392,200 Expenditures for warranties Pretax financial income 2016 2018 Eve por o rences) 231.000 89.300 cogid 5162.000 23.100 (14.400) 517000 Icon botas 23100 300 The taxes in effect are 2016, 2017 and 2011. A w ere acted to worry 1, 2016. No ferred income an d the beginning of 2015. Table income t o income tax exped o mete, and income tax payable for 2016, 2017 and 2018. (Cre a rea dewe

Answer 1

Solution:

Vaughn Co.
Journal Entries
Date	Particulars	Debit	Credit
31-Dec-16	Income tax expense Dr	$68,480.00
	Deferred Tax Assets Dr ($9,600*45%)	$4,320.00
	To Income Tax Payable		$65,960.00
	To Deferred tax liability ($15,200*45%)		$6,840.00
	(Being current income tax and deferred taxes)
31-Dec-17	Income tax expense Dr	$103,950.00
	Deferred Tax Liability Dr ($7,700*45%)	$3,465.00
	To Income Tax Payable		$105,255.00
	To Deferred tax Assets ($4,800*45%)		$2,160.00
	(Being current income tax and deferred taxes)
31-Dec-18	Income tax expense Dr	$40,185.00
	Deferred Tax Liability Dr ($4,800*45%)	$3,465.00
	To Income Tax Payable		$41,490.00
	To Deferred tax Assets ($7,700*45%)		$2,160.00
	(Being current income tax and deferred taxes)