See attached picture1. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2017 and 2018. Assume taxable income was $980,000 in 20182. Prepare the income tax expense section of the income statement for 2017, beginning with "Income before income taxes" P19-1 (LO1,2,4) EXCEL (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information isavailable for Remmers Corporation for 2017.1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This differ-ence will reverse in equal amounts of $30,000 over the years 2018–2021.2. Interest received on municipal bonds was $10,000.3. Rent collected in advance on January 1, 2017, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported asunearned at December 31, 2017, for book purposes.4. The tax rates are 40% for 2017 and 35% for 2018 and subsequent years.5. Income taxes of $320,000 are due per the tax return for 2017.6. No deferred taxes existed at the beginning of 2017.

Requirement 1: Pass necessary journal entries.

Answered: P19-1 (LO1,2,4) EXCEL (Three…

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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See attached picture

1. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2017 and 2018. Assume taxable income was $980,000 in 2018

2. Prepare the income tax expense section of the income statement for 2017, beginning with "Income before income taxes"

P19-1 (LO1,2,4) EXCEL (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is
available for Remmers Corporation for 2017.
1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This differ-
ence will reverse in equal amounts of $30,000 over the years 2018–2021.
2. Interest received on municipal bonds was $10,000.
3. Rent collected in advance on January 1, 2017, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as
unearned at December 31, 2017, for book purposes.
4. The tax rates are 40% for 2017 and 35% for 2018 and subsequent years.
5. Income taxes of $320,000 are due per the tax return for 2017.
6. No deferred taxes existed at the beginning of 2017.

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