Question

The DeVille Company reported pretax accounting Income on its Income statement as follows: $425,80e 2818 2819 2828 2821 345,808 415,888 455,e8 Included In the Income of 2018 was an Installment sale of property In the amount of $60,000. However, for tax purposes, DeVille reported the Income In the year cash was collected. Cash collected on the Installment sale was $24,000 In 2019, $30,000 In 2020, and $6,000 In 2021. Included In the 2020 Income was $25,000 Interest from Investments In municlpal bonds. The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond. Required: Prepare the year-end Journal entries to record Income taxes for the years 2018-2021. (If no entry is required for a transaction/event, select "No Journal entry requlred" In the first account field.) new transaction lst Journal entry worksheet Record 2018 income taxes. Date Dec 31, 2018 Debit

Answer 1

The Revillc com tome On 0 2017 002O #4a5,000 345,000 20415,000 Cash collected on nshallment zales tn 201 200- 30 000 o-6000 municipal bonds The enacted fox orale BOY 201g 2019 30'/. Depa e the

ge Can ol0t8 ncome + . Taxable Income - Fietax accoon hing S,00060000 3,65000 aablcome $3,65,000 307. X 6000 2. 18000 income -30% X365000 ご 1095-00

able 6109500 Pe a accounting ome3,45,000 rax able tnco mニ‰tax accounting Income ten 345000 4000 369000 come - < 369000

Paqr.NO 4 36000 l0o 1000 ants taxable Encome 30. X 369000 29-х 369000 100 110700 able $ 110700 t10700-9000 (olloo ax expenseよ4101 00

Auct Pman ent difference _ $ aS000 -' taxable income -φ4,20,000 can 2020X - as 30000 30,000 /00 laxeA payable

eNO 6 $10500o . . ,axes payable こ $10 5000 eses-$91S00 lhe fax accouning Thcomc Enshallmenh ction = $ 6000 Taxablẽ ncomeょ fve fax accounting income t'ostalinen ruene ecnor込 45S000 o6ooo 46100

etNO仔 X 6000 100 1600 iSoO Tares payable e tnCOme --25 x461000 /00 able $115250 ax expen3 e " fax expense c 1134S00 0 t8000 ニ(9000 t打00 +1500 = 18000