Question

Skysong Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $56,400 in 2021, $61,800 in 2022, and $66,400 in 2023. Skysong’s pretax financial income for 2020 is $278,300, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2020.

Compute taxable income and income taxes payable for 2020. Taxable income $enter a dollar amount Income taxes payable $enter a dollar amount

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.”. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Skysong Corporation Income Statement (Partial) choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 select an income statement item CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $enter a dollar amount select an opening section name CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues select an income statement item     Current    Deferred    Dividends    Expenses    Income before Income Taxes    Income Tax Expense    Net Income / (Loss)    Retained Earnings, January 1    Retained Earnings, December 31    Revenues    Total Expenses    Total Revenues     $enter a dollar amount select an income statement item     Current    Deferred    Dividends    Expenses    Income before Income Taxes    Income Tax Expense    Net Income / (Loss)    Retained Earnings, January 1    Retained Earnings, December 31    Revenues    Total Expenses    Total Revenues     enter a dollar amount enter a subtotal of the two previous amounts select a closing name for this statement CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $enter a total net income or loss amount

Answer 1

Answer:
Particulars	Amount (in $ )
Pretax financial income	$ 278,300
Less: Temporary difference              ( $ 56,400 + $ 61,800 + $ 66,400 )	($ 184,600)
Taxable income	$ 93,700
Income taxes payable ( $ 93,700 x 30% )	$ 28,110
Account Titles and Explanation	Debit (in $)	Credit ( in $)
Income Tax Expense ($ 278,300 x 30% )	$ 83,490
Income tax payable		$ 28,110
Deferred tax liability                 ( $ 184,600 x 30% )		$ 55,380
(To record the income tax expense)
Skysong Corporation Income Statement (Partial)
Income before Income Taxes		$ 278,300
Income Tax Expense :
Deferred	$ 55,380
Current	$ 28,110
		($ 83,490)
Net Income /Loss		$ 194,810