J-Matt, Inc., had pretax accounting income of $307,000 and taxable income of $328,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $21,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022–2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Determine the amounts necessary to record J-Matt's income taxes for 2021 and prepare the appropriate journal entry. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. General Income Tax Journal Prepare the appropriate journal entry. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 1 Income tax expense 75,000 X Deferred tax asset 7,000 Income tax payable 82,000 Income Tax General Journal

J-Matt, Inc., had pretax accounting income of $307,000 and taxable income of $328,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $21,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022–2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Determine the amounts necessary to record J-Matt's income taxes for 2021 and prepare the appropriate journal entry. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. General Income Tax Journal Prepare the appropriate journal entry. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 1 Income tax expense 75,000 X Deferred tax asset 7,000 Income tax payable 82,000 Income Tax General Journal

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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