Rangee Rover Inc. had taxable income of $218,500 for the year. The GAAP basis of accounts receivable (net) is $13,800 less than the tax basis of accounts receivable. Assuming a tax rate of 25%, record the income tax journal entry on December 31. Assume zero beginning balances in deferred tax accounts. • Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Cr. Date Dec. 31 Income Tax Expense Deferred Tax Liability Income Tax Payable N/A To record income tax expense. V Dr. 54,625 0 0 0 0x 13,800 x 40,825 x 0✓
Rangee Rover Inc. had taxable income of $218,500 for the year. The GAAP basis of accounts receivable (net) is $13,800 less than the tax basis of accounts receivable. Assuming a tax rate of 25%, record the income tax journal entry on December 31. Assume zero beginning balances in deferred tax accounts. • Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Cr. Date Dec. 31 Income Tax Expense Deferred Tax Liability Income Tax Payable N/A To record income tax expense. V Dr. 54,625 0 0 0 0x 13,800 x 40,825 x 0✓
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 2EA: Consider the following accounts and determine if the account is a current liability, a noncurrent...
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![Recording Income Tax Expense
Rangee Rover Inc. had taxable income of $218,500 for the year. The GAAP basis of accounts receivable (net) is $13,800 less than the tax basis of accounts receivable. Assuming a tax rate of 25%,
record the income tax journal entry on December 31. Assume zero beginning balances in deferred tax accounts.
• Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).
Date
Account Name
Cr.
Dec. 31 Income Tax Expense
Deferred Tax Liability
Income Tax Payable
N/A
To record income tax expense.
>
>
Dr.
54,625
0
0
O
0x
13,800 *
40,825 *
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F93a94bf3-1a0f-4d9c-8504-f82e4eab0fc0%2Fce6d7c12-7e64-4816-a420-cfe3aa492c2c%2Fawhlqqa_processed.png&w=3840&q=75)
Transcribed Image Text:Recording Income Tax Expense
Rangee Rover Inc. had taxable income of $218,500 for the year. The GAAP basis of accounts receivable (net) is $13,800 less than the tax basis of accounts receivable. Assuming a tax rate of 25%,
record the income tax journal entry on December 31. Assume zero beginning balances in deferred tax accounts.
• Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).
Date
Account Name
Cr.
Dec. 31 Income Tax Expense
Deferred Tax Liability
Income Tax Payable
N/A
To record income tax expense.
>
>
Dr.
54,625
0
0
O
0x
13,800 *
40,825 *
0
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