Taxable income and pretax financial income would he identical for Huber Co, except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations hawe been prepared. The tax rates in effect are 2024, 20%; 2025 and 2026, 25%. All tax rates were enacted into law on January 1, 2024, No deferred income taxes existed at the beginning of 2024. Taxable incorne is expected in all future years. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2024, 2025, and 2026. (List oll debit entries before credit entries. Credit occount titles ore outomotically indented when amount is entered. Do not indent monually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)Date Account Titles and Explanation Debit Credit Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability c. 31,2025vv Income Tax Expense Deferred Tax Liability Income Tax Payable c. 31,2026vv Income Tax Expense Deferred Tax Liability Income Tax Payable Deferred Tax Asset Date Account Titles and Explanation Debit Credit 31, 2024 Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability c. 31, 2025 Income Tax Expense Deferred Tax Liability Income Tax Payable Deferred Tax Asset c. 31, 2026 Income Tax Expense Deferred Tax Liability Income Tax Payable Deferred Tax Asset
Taxable income and pretax financial income would he identical for Huber Co, except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations hawe been prepared. The tax rates in effect are 2024, 20%; 2025 and 2026, 25%. All tax rates were enacted into law on January 1, 2024, No deferred income taxes existed at the beginning of 2024. Taxable incorne is expected in all future years. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2024, 2025, and 2026. (List oll debit entries before credit entries. Credit occount titles ore outomotically indented when amount is entered. Do not indent monually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)Date Account Titles and Explanation Debit Credit Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability c. 31,2025vv Income Tax Expense Deferred Tax Liability Income Tax Payable c. 31,2026vv Income Tax Expense Deferred Tax Liability Income Tax Payable Deferred Tax Asset Date Account Titles and Explanation Debit Credit 31, 2024 Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability c. 31, 2025 Income Tax Expense Deferred Tax Liability Income Tax Payable Deferred Tax Asset c. 31, 2026 Income Tax Expense Deferred Tax Liability Income Tax Payable Deferred Tax Asset
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Taxable income and pretax financial income would he identical for Huber Co, except for its treatments of
gross profit on installment
sales and estimated costs of warranties. The following income computations hawe been prepared.
The tax rates in effect are 2024, 20%; 2025 and 2026, 25%. All tax rates were enacted into law on January
1, 2024, No deferred
income taxes existed at the beginning of 2024. Taxable incorne is expected in all future years.
Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes
payable for 2024, 2025, and 2026.
(List oll debit entries before credit entries. Credit occount titles ore outomotically indented when amount
is entered. Do not indent monually. If
no entry is required, select "No Entry" for the account titles and enter O for the amounts.)Date
Account Titles and Explanation
Debit
Credit
Income Tax Expense
Deferred Tax Asset
Income Tax Payable
Deferred Tax Liability
c. 31,2025vv
Income Tax Expense
Deferred Tax Liability
Income Tax Payable
c. 31,2026vv
Income Tax Expense
Deferred Tax Liability
Income Tax Payable
Deferred Tax Asset
Date
Account Titles and Explanation
Debit
Credit
31, 2024
Income Tax Expense
Deferred Tax Asset
Income Tax Payable
Deferred Tax Liability
c. 31, 2025
Income Tax Expense
Deferred Tax Liability
Income Tax Payable
Deferred Tax Asset
c. 31, 2026
Income Tax Expense
Deferred Tax Liability
Income Tax Payable
Deferred Tax Asset
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