Prepare the journal entries to record income taxes for 2020. (Credit account titles are automatically indented when the amount isentered. 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 ExplanationDebitCreditCurrent Tax ExpenseIncome Tax Payable(To record current tax expense.)Deferred Tax ExpenseDeferred Tax Liability(To record future tax expense.)eTextbook and MediaList of AccountsCalculate the effective rate for 2020.Effective Rate The following information relates to Wildhorse Corp.:At July 1, 2019At June 30, 2020Temporary difference, giving rise to future taxable amounts$28,600$79,800Temporary difference, giving rise to future deductible amounts18,70054,800Accounting income for the year ended June 30, 2020 was $70,200. No permanent differences existed during the fiscal year. Thecompany was expected to operate profitably in the future. The tax rate was 20% for the current and future years. Wildhorse Corp.follows ASPE.Calculate the amount of taxable income for 2020.Taxable Income$eTextbook and MediaList of Accounts

Deferred tax liability (DTL) refers to the amount of tax raised for the present financial year but…

Prepare the journal entries to record income taxes for 2020. (Credit account titles are automatically indented when the 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 Current Tax Expense Income Tax Payable (To record current tax expense.)

Prepare the journal entries to record income taxes for 2020. (Credit account titles are automatically indented when the 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 Current Tax Expense Income Tax Payable (To record current tax expense.)

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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eTextbook and Media List of Accounts Prepare required journal entry to adjust income tax epense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the acd unt titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July 31 (Torecord incoma tax expensa.)
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