Required: Prepare the journal entries to record income taxes for the years 2024 through 2027. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Required: Prepare the journal entries to record income taxes for the years 2024 through 2027. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bhil
![Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years
2024 through 2025 except for differences in depreciation on an operational asset. The asset cost $180,000 and is depreciated for
income tax purposes in the following amounts:
2024
2025
2026
2027
The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes.
Income amounts before depreciation expense and income taxes for each of the four years were as follows:
Accounting income before taxes and depreciation
1
Assume the income tax rate for 2024 and 2025 was 30% ; however, during 2025, tax legislation was passed to raise the tax rate to
40% beginning in 2026. The 40% rate remained in effect through the years 2026 and 2027. Both the accounting and income tax
periods end December 31.
No
$ 59,400
79,200
27,000
14,400
Required:
Prepare the journal entries to record income taxes for the years 2024 through 2027.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
2
3
4
Date
December 31, 2024 Income tax expense
Income tax payable
December 31, 202 Income tax expense
Income tax payable
2024
2025
2026
2027
$ 100,000 $ 120,000 $ 110,000 $ 110,000
December 31, 2026 Income tax expense
Income tax payable
December 31, 202] Income tax expense
Income tax payable
X Answer is not complete.
General Journal
> >
✓
33
✓
X
X 3
Debit
12,180 x
12,240 x
33,200 x
38,240 x
Credit
12,180✔
12,240
33,200
38,240 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bc663fd-eebf-4c95-bc98-c9ae78f32d21%2F9517a303-d613-43f4-a82b-f5dea94fbed6%2Faajbk1o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years
2024 through 2025 except for differences in depreciation on an operational asset. The asset cost $180,000 and is depreciated for
income tax purposes in the following amounts:
2024
2025
2026
2027
The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes.
Income amounts before depreciation expense and income taxes for each of the four years were as follows:
Accounting income before taxes and depreciation
1
Assume the income tax rate for 2024 and 2025 was 30% ; however, during 2025, tax legislation was passed to raise the tax rate to
40% beginning in 2026. The 40% rate remained in effect through the years 2026 and 2027. Both the accounting and income tax
periods end December 31.
No
$ 59,400
79,200
27,000
14,400
Required:
Prepare the journal entries to record income taxes for the years 2024 through 2027.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
2
3
4
Date
December 31, 2024 Income tax expense
Income tax payable
December 31, 202 Income tax expense
Income tax payable
2024
2025
2026
2027
$ 100,000 $ 120,000 $ 110,000 $ 110,000
December 31, 2026 Income tax expense
Income tax payable
December 31, 202] Income tax expense
Income tax payable
X Answer is not complete.
General Journal
> >
✓
33
✓
X
X 3
Debit
12,180 x
12,240 x
33,200 x
38,240 x
Credit
12,180✔
12,240
33,200
38,240 x
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