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 2023-2026 are as follows: 2023 2024 2025 2026 No 1 Service Revenue $ 688,000 778,000 738,000 744,000 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%. Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2023- 2026.) 2 Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2024 income taxes, 2025 income taxes, and 2026 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers n whole dollars. 3 Event 1 Collections $ 648,000 806,000 730,000 748,000 2 3 Income tax expense Deferred tax liability Income tax payable Pretax Accounting Income $ 214,000 288,000 256,000 228,000 Income tax expense Income tax payable Deferred tax liability Income tax expense Deferred tax liability Income tax payable Answer is not complete. General Journal ✓ ✓ ✓ 000 000 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 2023-2026 are as follows: 2023 2024 2025 2026 No 1 Service Revenue $ 688,000 778,000 738,000 744,000 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%. Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2023- 2026.) 2 Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2024 income taxes, 2025 income taxes, and 2026 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers n whole dollars. 3 Event 1 Collections $ 648,000 806,000 730,000 748,000 2 3 Income tax expense Deferred tax liability Income tax payable Pretax Accounting Income $ 214,000 288,000 256,000 228,000 Income tax expense Income tax payable Deferred tax liability Income tax expense Deferred tax liability Income tax payable Answer is not complete. General Journal ✓ ✓ ✓ 000 000 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 2023-2026
are as follows:
2023
2024
2025
2026
No
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%.
(Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2023-
2026.)
1
Service Revenue
$ 688,000
778,000
738,000
744,000
Required:
1. to 3. Prepare the appropriate journal entries to record Alsup's 2024 income taxes, 2025 income taxes, and 2026 income taxes.
Note: 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.
2
3
Event
1
Collections
$ 648,000
806,000
730,000
748,000
2
3
Income tax expense
Deferred tax liability
Income tax payable
Pretax Accounting
Income
$ 214,000
288,000
256,000
228,000
Income tax expense
Income tax payable
Deferred tax liability
Income tax expense
Deferred tax liability
Income tax payable
Answer is not complete.
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