### Tax Accounting Worksheet for Metlock Inc. (2024)#### Provided Information:1. **Excess Tax Depreciation Over Book Depreciation:** - Amount: $77,200. - This difference will evenly reverse over the next 4 years. 2. **Deferral of Subscription Income:** - Amount: $26,000 for advance subscription income received. - This income will be earned in 2025.3. **Pretax Financial Income:** - Amount: $206,000.4. **Tax Rate:** - Fixed at 20% for all years.---#### (a) Computation of Taxable Income for 2024:The computation of taxable income is confirmed to be correct. - **Taxable Income Computation Result:** - Value: $154,800.The platform confirms that the taxable income calculated is accurate, as indicated by the green checkmark and the verification statement, "Your answer is correct."---#### (b) Journal Entry Preparation for 2024:Prepare the journal entries necessary for recording the following: 1. Income Tax Expense.2. Deferred Income Taxes.3. Income Taxes Payable for the year 2024.- **Guidelines for Entry:** - Credit account titles align automatically when amounts are inputted. - Manual indentation is not required. - Enter "No Entry" if there is no entry needed and "0" for the amounts where applicable. - Debit entries should precede credit entries.##### Journal Entry Template:| Account Titles and Explanation | Debit | Credit ||--------------------------------|--------|--------|| depreciation | | || [more accounts as necessary] | | |When filling in the journal entry:- Make sure to list all the debit entries before the credit entries.- Accurate amounts and appropriate account titles are critical for maintaining correct records.This worksheet assists in proper tax accounting practices by providing necessary computational steps and ensuring easy tracking through journal entries. It serves as an educational illustration for handling tax differences and deferred income scenarios.

Answer:- Journal entry meaning:- In the company's books, a journal entry serves as a record of a…

The following information is available for Metlock Inc. for 2024: 1. Excess of tax depreciation over book depreciation, $77,200. This $77,200 difference will reverse equally over the next 4 years. 2 3. 4 Deferral, for book purposes, of $26,000 of subscription income received in advance. The subscription income will be earned in 2025. Pretax financial income $206.000 Tax rate for all years, 20% (b) Your answer is correct. Compute taxable income for 2024. Taxable income $ 154800 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit deprecation DOOD Credit

The following information is available for Metlock Inc. for 2024: 1. Excess of tax depreciation over book depreciation, $77,200. This $77,200 difference will reverse equally over the next 4 years. 2 3. 4 Deferral, for book purposes, of $26,000 of subscription income received in advance. The subscription income will be earned in 2025. Pretax financial income $206.000 Tax rate for all years, 20% (b) Your answer is correct. Compute taxable income for 2024. Taxable income $ 154800 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit deprecation DOOD Credit

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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