The DeVille Company reported pretax accounting Income on Its Income statement as follows: 2024 2025 2026 2027 $ 420,000 340,000 410,000 450,000 Included in the Income of 2024 was an Installment sale of property in the amount of $58,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the Installment sale was $23,200 in 2025, $29,000 in 2026, and $5,800 in 2027. Included in the 2026 Income was $24,000 Interest from Investments in municipal governmental bonds. The enacted tax rate for 2024 and 2025 was 40%, but during 2025, new tax legislation was passed reducing the tax rate to 25% for the years 2026 and beyond. Required: Prepare the year-end Journal entries to record income taxes for the years 2024-2027. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.

The DeVille Company reported pretax accounting Income on Its Income statement as follows: 2024 2025 2026 2027 $ 420,000 340,000 410,000 450,000 Included in the Income of 2024 was an Installment sale of property in the amount of $58,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the Installment sale was $23,200 in 2025, $29,000 in 2026, and $5,800 in 2027. Included in the 2026 Income was $24,000 Interest from Investments in municipal governmental bonds. The enacted tax rate for 2024 and 2025 was 40%, but during 2025, new tax legislation was passed reducing the tax rate to 25% for the years 2026 and beyond. Required: Prepare the year-end Journal entries to record income taxes for the years 2024-2027. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.

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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Use the following information for Ingersoll, Incorporated. Assume the tax rate is 23 percent. Sales Depreciation 2020 2021 $15,073 $15,036 1,731 1,806 Cost of goods sold 4,329 4,777 Other expenses 981 859 Interest 830 961 Cash 6,172 6,676 Accounts receivable 8,110 9,637 Short-term notes payable 1,240 1,217 Long-term debt 20,530 24,811 Net fixed assets 51,042 54,483 Accounts payable 4,496 4,854 Inventory 14,402 15,358 1,300 1,688 Dividends Prepare a balance sheet for this company for 2020 and 2021. (Do not round intermediate calculations.) INGERSOLL, INCORPORATED Balance Sheet as of December 31 Current assets Assets 2020 2021
Current Attempt in Progress Wildhorse Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Year 2021 2022 2023 2024 Accounting Income (Loss) $129,000 94,000 (302,000) 221,000 Tax Rate 25 % 25 % 30 % 30 % The tax rates listed were all enacted by the beginning of 2021. Wildhorse reports under the ASPE future income taxes method.
On December 31, 2023, Sandy Company has a Note Receivable of $6,000. The note will be collected in installments. $1,200 is due on December 31, 2024 and $1,200 is due every year after December 31, 2024. The classification of the note on Sandy Company's balance sheet at December 31, 2023 is : A) $4,800 is a current asset and $1,200 is a long-term asset. B) all $6,000 is a long-term asset. C) all $6,000 is a current asset. D) $1,200 is a current asset and $4,800 is a long-term asset.
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