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Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $668,000 758,000 718,000 724,000 No 1 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25 %. View transaction list 2 (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020-2023.) Collections $628,000 786,000 710,000 728,000 Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 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 whole dollars.) Event 1 2 Pretax Accounting View journal entry worksheet Income $194,000 268,000 236,000 208,000 Income tax expense Deferred tax liability Income tax payable Income tax expense General Journal Debit Credit

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $668,000 758,000 718,000 724,000 No 1 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25 %. View transaction list 2 (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020-2023.) Collections $628,000 786,000 710,000 728,000 Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 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 whole dollars.) Event 1 2 Pretax Accounting View journal entry worksheet Income $194,000 268,000 236,000 208,000 Income tax expense Deferred tax liability Income tax payable Income tax expense General Journal Debit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $668,000 758,000 718,000 724,000 No 1 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%. View transaction list 2 (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020-2023.) Collections $628,000 786,000 710,000 728,000 Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 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 whole dollars.) Event 1 2 Pretax Accounting View journal entry worksheet Income $194,000 268,000 236,000 208,000 Income tax expense Deferred tax liability Income tax payable Income tax expense General Journal Debit Credit
Transcribed Image Text:Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $668,000 758,000 718,000 724,000 No 1 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%. View transaction list 2 (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020-2023.) Collections $628,000 786,000 710,000 728,000 Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 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 whole dollars.) Event 1 2 Pretax Accounting View journal entry worksheet Income $194,000 268,000 236,000 208,000 Income tax expense Deferred tax liability Income tax payable Income tax expense General Journal Debit Credit
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $668,000 758,000 718,000 724,000 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%. View transaction list No 16 (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020- 2023.) 2 Collections $628,000 786,000 710,000 728,000 Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 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 whole dollars.) Event 1 2 Pretax Accounting View journal entry worksheet Income $194,000 268,000 236,000 208,000 Income tax expense Deferred tax liability Income tax payable Income tax expense General Journal Debit Credit
Transcribed Image Text:Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue $668,000 758,000 718,000 724,000 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%. View transaction list No 16 (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020- 2023.) 2 Collections $628,000 786,000 710,000 728,000 Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 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 whole dollars.) Event 1 2 Pretax Accounting View journal entry worksheet Income $194,000 268,000 236,000 208,000 Income tax expense Deferred tax liability Income tax payable Income tax expense General Journal Debit Credit
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