Question
In: Accounting
The DeVille Company reported pretax accounting income on its income statement as follows: 2019 2020 2021...
The DeVille Company reported pretax accounting income on its income statement as follows: 2019 2020 2021 2022 Pretax accounting income $350,000 270,000 340,000 380,000 Included in the income of 2019 was an installment sale of property in the amount of $50,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $20,000 in 2020, $25,000 in 2021, and $5,000 in 2022. Included in the income of 2020 was $20,000 fine paid for violation of federal law. The enacted tax rate for 2019 and 2020 was 30%, but during 2020, new tax legislation was passed reducing the tax rate to 20% beginning in 2021.
1. Prepare the year-end journal entries to record income taxes for 2019.
2. Prepare the year-end journal entries to record income taxes for 2020.
Provide Explanation for each part
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The DeVille Company reported pretax accounting income on its income statement as follows: 2021 $ 385,000...
The DeVille Company reported pretax accounting income on its
income statement as follows:
2021
$
385,000
2022
305,000
2023
375,000
2024
415,000
Included in the income of 2021 was an installment sale of property
in the amount of $42,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $16,800 in 2022, $21,000 in 2023, and
$4,200 in 2024.
Included in the 2023 income was $17,000 interest from investments...
The DeVille Company reported pretax accounting income on its income statement as follows: 2021 $ 450,000...
The DeVille Company reported pretax accounting income on its
income statement as follows:
2021
$
450,000
2022
370,000
2023
440,000
2024
480,000
Included in the income of 2021 was an installment sale of property
in the amount of $70,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $28,000 in 2022, $35,000 in 2023, and
$7,000 in 2024.
Included in the 2023 income was $30,000 interest from investments...
The DeVille Company reported pretax accounting income on its income statement as follows: 2021 $ 420,000...
The DeVille Company reported pretax accounting income on its
income statement as follows:
2021
$
420,000
2022
340,000
2023
410,000
2024
450,000
Included in the income of 2021 was an installment sale of property
in the amount of $58,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $23,200 in 2022, $29,000 in 2023, and
$5,800 in 2024.
Included in the 2023 income was $24,000 interest from investments...
The DeVille Company reported pretax accounting income on its income statement as follows: 2018 $...
The DeVille Company reported pretax accounting income on its
income statement as follows:
2018
$
445,000
2019
365,000
2020
435,000
2021
475,000
Included in the income of 2018 was an installment sale of property
in the amount of $68,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $27,200 in 2019, $34,000 in 2020, and
$6,800 in 2021.
Included in the 2020 income was $29,000 interest...
The DeVille Company reported pretax accounting income on its income statement as follows: 2016 $...
The DeVille Company reported
pretax accounting income on its income statement as follows:
2016
$
390,000
2017
310,000
2018
380,000
2019
420,000
Included in the income of 2016 was an installment sale of
property in the amount of $44,000. However, for tax purposes,
DeVille reported the income in the year cash was collected. Cash
collected on the installment sale was $17,600 in 2017, $22,000 in
2018, and $4,400 in 2019.
Included in the 2018 income was $18,000...
The DeVille Company reported pretax accounting income on its income statement as follows: 2018 $...
The DeVille Company reported pretax accounting income on its
income statement as follows:
2018
$
440,000
2019
360,000
2020
430,000
2021
470,000
Included in the income of 2018 was an installment sale of property
in the amount of $66,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $26,400 in 2019, $33,000 in 2020, and
$6,600 in 2021.
Included in the 2020 income was $28,000 interest...
The DeVille Company reported pretax accounting income on its income statement as follows: 2018 $...
The DeVille Company reported pretax accounting income on its
income statement as follows:
2018
$
360,000
2019
280,000
2020
350,000
2021
390,000
Included in the income of 2018 was an installment sale of property
in the amount of $32,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $12,800 in 2019, $16,000 in 2020, and
$3,200 in 2021.
Included in the 2020 income was $11,000 interest...
The DeVille Company reported pretax accounting income on its income statement as follows: 2018 $...
The DeVille Company reported pretax accounting income on its
income statement as follows:
2018
$
390,000
2019
310,000
2020
380,000
2021
420,000
Included in the income of 2018 was an installment sale of property
in the amount of $44,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $17,600 in 2019, $22,000 in 2020, and
$4,400 in 2021.
Included in the 2020 income was $18,000 interest...
The DeVille Company reported pretax accounting income on its income statement as follows: 2018 $...
The DeVille Company
reported pretax accounting income on its income statement as
follows:
2018
$
365,000
2019
285,000
2020
355,000
2021
395,000
Included in the income of 2018 was an installment sale of property
in the amount of $34,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $13,600 in 2019, $17,000 in 2020, and
$3,400 in 2021.
Included in the 2020 income was $12,000 interest...
The DeVille Company reported pretax accounting income on its income statement as follows: 2018 $...
The DeVille Company reported pretax accounting income on its
income statement as follows:
2018
$
410,000
2019
330,000
2020
400,000
2021
440,000
Included in the income of 2018 was an installment sale of property
in the amount of $54,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $21,600 in 2019, $27,000 in 2020, and
$5,400 in 2021.
Included in the 2020 income was $22,000 interest...
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