Exercise 19-08 (Part Level Submission)Bramble Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022Pretax financial income $816,000 $925,000 $930,000 Excess depreciation expense on tax return (30,200) (40,900) (10,200)Excess warranty expense in financial income 20,800 9,700 8,000 Taxable income $806,600 $893,800 $927,800 The income tax rate for all years is 20%. v (a)Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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 titlesand enter 0 for the amounts.)Account Titles and ExplanationDebitCredit202020212022cy | a 2000-2021 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc.Version 4.

Tax Expense = Current tax + Deferred tax. Current tax is the amount of income tax is determined to…

Answered: Bramble Company has the following two…

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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Exercise 19-08 (Part Level Submission)

Bramble Company has the following two temporary differences between its income tax expense and income taxes payable.

	2020		2021		2022
Pretax financial income	$816,000			$925,000		$930,000
Excess depreciation expense on tax return	(30,200	)		(40,900	)	(10,200	)
Excess warranty expense in financial income	20,800			9,700		8,000
Taxable income	$806,600			$893,800		$927,800

The income tax rate for all years is 20%.

v (a)
Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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.)
Account Titles and Explanation
Debit
Credit
2020
2021
2022
cy | a 2000-2021 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc.
Version 4.

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