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Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six mon

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Required: Journal entries

Date General Journal Debit Credit
2021 Income tax expenses $65,000
Deferred tax liabilities (778,000-750,000)*25% $7,000
Income tax payable $72,000
2022 Income tax expenses $57,000
Deferred tax liabilities (710,000-702,000)*25% $2,000
Income tax payable $55,000
2023 Income tax expenses $50,000
Deferred tax liabilities (720,000-716,000)*25% $1,000
Income tax payable $51,000

Computation of taxable income:

2021 2022 2023
Pre-tax accounting income $260,000 $228,000 $200,000
(+) Collections $778,000 $702,000 $720,000
(-) Service revenue ($750,000) ($710,000) ($716,000)
Taxable income $288,000 $220,000 $204,000
Tax rate 25% 25% 25%
Income tax $72,000 $55,000 $51,000
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