Question

Recording Income Tax Expense
The Boeing Company reports the following tax information in Note 4 to its 2014 financial report.

Year ended December 31	2014	2013	2012
Current tax expense
U.S. federal	$775	$-84	$756
Non-U.S.	93	78	63
U.S. state	71	13	21
	939	7	831
Deferred tax expense
U.S. federal	927	1,630	1,308
Non-U.S	36	43	(15)
U.S state	(7)	71	85
	956	1,744	1,378
Total income tax expense	$1,895	$1,751	$2,209

a. Record Boeing's provision for income taxes for 2014 using the financial statement effects template.

Use negative signs with answers when appropriate. When applicable, enter total amount for liabilities.

	Balance Sheet									Income Statement
Transaction	Cash Asset	+	Noncash Asset	=	Liabilities	+	Contrib. Capital	+	Earned Capital	Revenues	-	Expenses	=	Net Income
To record income tax expense	Answer	+	Answer	=	Answer	+	Answer	+	Answer	Answer	-	Answer	=	Answer

b. Record Boeing's provision for income taxes for 2014 using journal entries.

General Journal
Description	Debit	Credit
AnswerDeferred tax assetDeferred tax liabilityIncome tax expense	Answer	Answer
AnswerDeferred tax assetDeferred tax liabilityIncome tax expense	Answer	Answer
Income tax payable	Answer	Answer

Answer 1

Adjusted Data:

Year End December 31	2014	2013	2012
Current tax expense
U.S. federal	$     775.00	$     (84.00)	$     756.00
Non-U.S.	$        93.00	$        78.00	$        63.00
U.S. state	$        71.00	$        13.00	$        21.00
Total	$     939.00	$          7.00	$     840.00
Deferred tax expense
U.S. federal	$     927.00	$ 1,630.00	$ 1,308.00
Non-U.S.	$        36.00	$        43.00	$     (15.00)
U.S. state	$        (7.00)	$        71.00	$        85.00
Total	$     956.00	$ 1,744.00	$ 1,378.00
Total Income Tax Expenses	$ 1,895.00	$ 1,751.00	$ 2,218.00
	2014	2013	2012
Accounting Taxes	$ 1,895.00	$ 1,751.00	$ 2,218.00
Current Taxes	$     939.00	$          7.00	$     840.00
Deffered Tax liablity	$     956.00	$ 1,744.00	$ 1,378.00

Answer A

BALANCE SHEET

INCOME STATEMENT

Transection

cash Assets

+

Non cash Assets

=

Liablity

+

Contrib. Capital

+

earnned capital

Revenue

-

Expenses

=

Net Income

Adjustment for Tax liability

$       9.00

Current Year Provision

$ 1,895.00

Net Income/(Loss)

$ (1,886.00)

Defferd Tax liability

$           947.00

Taxes Payble A/c

$           939.00

Current Year Losses

$ 1,886.00

$ 1,886.00

$        1,886.00

Answer B

Journal Entry in Year 2014
Particulars	Debit	Credit
Provision for taxes	$ 1,895.00
To tax Payable		$     939.00
To deffered Tax liability A/c		$     956.00
(Tax Expenses & Deffered tax Liability Recorded for Year 2014)
Defferd Tax liability A/c	$          9.00
To Profit & Loss A/c		$          9.00
(Adjustment for Year 2012, Excess Liability Created of $9)

Thanks