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 prețax accounting income for 2023-2026 are as follows: 2023 2024 2025 2026 Service Revenue $724,000 814,000 774,000 780,000 Collections $ 684,000 842,000 766,000 784,000 Pretax Accounting Income $ 250,000 324,000 292,000 264,000 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.) 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.

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 prețax accounting income for 2023-2026 are as follows: 2023 2024 2025 2026 Service Revenue $724,000 814,000 774,000 780,000 Collections $ 684,000 842,000 766,000 784,000 Pretax Accounting Income $ 250,000 324,000 292,000 264,000 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.) 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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