Question

For each of the five independent situations below, prepare a single journal entry that summarizes the recording and payment of income taxes and determine the amount of cash paid for income taxes. All dollars are in millions.

	Situation Income Tax Expense Income Tax Payable Increase (Decrease) Deferred Tax Liability Increase (Decrease) Cash Paid for Taxes 1 20.0 0 0 2 20.0 3.8 0 3 20.0 0 (2.8) 4 20.0 3.8 2.8 5 20.0 (3.8) (2.8)

Prepare a single journal entry that summarizes the recording and payment of income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

Events 1,2,3,4,5

Answer 1

Journal entries:

Event	Particulars	Debit ($)	Credit ($)
1	Income tax expense	20
	To Cash		20
2	Income tax expense	20
	To Income tax payable		3.8
	To cash		16.2
3	Income tax expense	20
	Deffered tax liability	2.8
	To cash		22.8
4	Income tax expense	20
	To Income tax payable		3.8
	To Deffered tax liability		2.8
	To cash		13.4
5	Income tax expense	20
	Income tax payable	3.8
	Deffered tax liability	2.8
	To cash		25.6