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

Please answer all parts of the question.

Answer 1

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

+

=

+ 939 Taxes Payable + 956 Deferred Taxes

+

+

-1,895 Retained Earning

-

+1,895 Income Tax Expense

=

-1895

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

General Journal

Description

Debit

Credit

Income tax expense

1895

Deferred income taxes

956

Income tax payable

939