Taxable income and pretax financial income would be identical for Bridgeport Co. except for its treatments...

Taxable income and pretax financial income would be identical for Bridgeport Co. except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared.

Taxable income	2019		2020		2021
Excess of revenues over expenses (excluding two temporary differences)	$149,000		$192,000		$96,700
Installment gross profit collected	7,600		7,600		7,600
Expenditures for warranties	(5,500	)	(5,500	)	(5,500	)
Taxable income	$151,100		$194,100		$98,800

Pretax financial income	2019		2020		2021
Excess of revenues over expenses (excluding two temporary differences)	$149,000		$192,000		$96,700
Installment gross profit recognized	22,800		-0-		-0-
Estimated cost of warranties	(16,500	)	-0-		-0-
Income before taxes	$155,300		$192,000		$96,700

The tax rates in effect are 2019, 40%; 2020 and 2021, 45%. All tax rates were enacted into law on January 1, 2019. No deferred income taxes existed at the beginning of 2019. Taxable income is expected in all future years.

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019, 2020, and 2021. (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.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2021Dec. 31, 2019Dec. 31, 2020

Dec. 31, 2019Dec. 31, 2021Dec. 31, 2020

Dec. 31, 2021Dec. 31, 2020Dec. 31, 2019

Expert Solution

ekkarill92 answered 1 year ago

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