Question

Taxes 1 G Saved Help Save & Exit Submit Check my work 4 In 2018, DFS Medical Supply collected rent revenue for 2019 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy the rental property. The deferred portion of the rent collected in 2018 amounted to $340,000 at December 31, 2018 DFS had no temporary differences at the beginning of the year. 0.1 points Required Assuming an income tax rate of 40% and 2018 income tax payable of $990,000, prepare the journal entry to record income taxes for 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Skipped eBook View transaction list Hint Print Journal entry worksheet References Record 2018 income taxes. Note: Enter debits before credits. Event General Journal Debit Credit Mc Graw K Prev 4 of 6 Next>

Answer 1

Event	General Journal	Debit	Credit
1	Income tax expense	854000		=990000-136000
	Deferred tax asset	136000		=340000*40%
	Income tax payable		990000