Question
In: Accounting
Alberto Company determines its annual income tax expense to be $459,000. Of that amount, $300,000 has...
Alberto Company determines its annual income tax expense to be $459,000. Of that amount, $300,000 has already been paid during the year (on a quarterly basis) and charged to the Income Taxes Expense account. The company has determined that, of the amount that has not yet been paid or recorded, $75,000 will be deferred into future years under certain favorable income tax provisions available to the company.
Prepare the end-of-year general journal entry to recognize income taxes accrued. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
1. A company reports the following: Income before income tax expense $6,000,000 Interest expense 300,000 Determine...
1. A company reports the following:
Income before income tax expense
$6,000,000
Interest expense
300,000
Determine the times interest earned ratio.
2. A company reports the following:
Sales
$6,480,000
Average total assets
2,400,000
Determine the asset turnover ratio. Round your answer to
one decimal place.
3. A company reports the following income statement and balance
sheet information for the current year:
Net income
$110,000
Interest expense
77,000
Average total assets
1,700,000
Determine the return on total assets. Round percentage
to...
1. A company reports the following: Income before income tax expense $6,000,000 Interest expense 300,000 Determine...
1. A company reports the following:
Income before income tax expense
$6,000,000
Interest expense
300,000
Determine the times interest earned ratio.
2. A company reports the following:
Sales
$6,480,000
Average total assets
2,400,000
Determine the asset turnover ratio. Round your answer to
one decimal place.
3. A company reports the following income statement and balance
sheet information for the current year:
Net income
$110,000
Interest expense
77,000
Average total assets
1,700,000
Determine the return on total assets. Round percentage
to...
Flint Company has the following two temporary differences between its income tax expense and income taxes...
Flint Company has the following two temporary differences
between its income tax expense and income taxes payable.
2020
2021
2022
Pretax financial income
$842,000
$956,000
$914,000
Excess depreciation expense on tax return
(28,800
)
(39,300
)
(9,900
)
Excess warranty expense in financial income
20,400
9,500
7,600
Taxable income
$833,600
$926,200
$911,700
The income tax rate for all years is 20%
Assuming there were no temporary differences prior to 2020,
prepare the journal entry to record income tax expense, deferred...
Carla Company has the following two temporary differences between its income tax expense and income taxes...
Carla Company has the following two temporary differences
between its income tax expense and income taxes payable.
2020
2021
2022
Pretax financial income
$864,000
$949,000
$920,000
Excess depreciation expense on tax return
(30,800)
(41,000)
(9,600)
Excess warranty expense in financial income
20,900
10,500
8,300
Taxable income
$854,100
$918,500
$918,700
The income tax rate for all years is 20%.
Assuming there were no temporary differences prior to 2020,
prepare the journal entry to record income tax expense, deferred
income taxes, and...
Shamrock Company has the following two temporary differences between its income tax expense and income taxes...
Shamrock Company has the following two temporary differences
between its income tax expense and income taxes payable. 2017 2018
2019 Pretax financial income $844,000 $884,000 $948,000 Excess
depreciation expense on tax return (30,800 ) (40,000 ) (9,500 )
Excess warranty expense in financial income 19,300 9,900 8,400
Taxable income $832,500 $853,900 $946,900 The income tax rate for
all years is 40%. Assuming there were no temporary differences
prior to 2017, prepare the journal entry to record income tax
expense, deferred...
please explain how a difference in income tax expense (amount reported on the income statement) and...
please explain how a difference in income tax expense (amount
reported on the income statement) and income tax payable (amount
due to IRS) can create either a deferred tax liability or deferred
tax asset.
Part 1: Temporary Differences Sharp Company has two temporary differences between its income tax expense and...
Part 1: Temporary Differences
Sharp Company has two temporary differences between its income
tax expense and income taxes payable. The information is shown
below.
2015
2016
2017
Pretax financial income
$420,000
$455,000
$472,500
Excess depreciation expense on tax return
(15,000)
(20,000)
(5,000)
Excess warranty expense in financial income
10,000
5,000
4,000
Taxable income
$415,000
$440,000
$471,500
The income tax rate for all years is 40%.
Prepare the journal entry to record income tax expense, deferred
income taxes, and income tax...
After-Tax Profit Targets Olivian Company wants to earn $300,000 in net (after-tax) income next year. Its...
After-Tax Profit Targets
Olivian Company wants to earn $300,000 in net (after-tax) income
next year. Its product is priced at $400 per unit. Product costs
include:
Direct materials
$120.00
Direct labor
$88.00
Variable overhead
$20.00
Total fixed factory overhead
$450,000
Variable selling expense is $16 per unit; fixed selling and
administrative expense totals $300,000. Olivian has a tax rate of
40 percent.
Required:
1. Calculate the before-tax profit needed to
achieve an after-tax target of $300,000.
$
2. Calculate the...
After-Tax Profit Targets Olivian Company wants to earn $300,000 in net (after-tax) income next year. Its...
After-Tax Profit
Targets Olivian Company wants to earn $300,000 in net
(after-tax) income next year. Its product is priced at $250 per
unit.
Product costs include:
Direct materials $75.00
Direct labor $55.00
Variable overhead $12.50
Total fixed factory overhead $445,000
Variable selling expense is $10 per unit; fixed selling and
administrative expense totals $295,000. Olivian has a tax rate of
40 percent.
Required: 1. Calculate the before-tax profit needed to achieve
an after-tax target of $300,000. $
2. Calculate the...
Is Income tax expense or a profit-sharing?
Is Income tax expense or a profit-sharing?
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