The following information is available for Marigold Corporation for 2020.1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024.2. Interest received on municipal bonds was $10,100.3. Rent collected in advance on January 1, 2020, totaled $56,700 for a 3-year period. Of this amount, $37,800 was reported as unearned at December 31, 2020, for book purposes.4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years.5. Income taxes of $308,000 are due per the tax return for 2020.6. No deferred taxes existed at the beginning of 2020. ### Journal Entries for Income Tax Expense, Deferred Income Taxes, and Income Taxes Payable (2020 & 2021)Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $1,021,000 in 2021.**Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.**#### Journal Entries Template:| Date | Account Titles and Explanation | Debit | Credit ||------|--------------------------------|-------|--------|| 2020 | | | || | | | || | | | || | | | || | | | || | | | || 2021 | | | || | | | || | | | || | | | || | | | || | | | |This form provides a clear, organized way for students to practice journalizing income tax-related entries. Students should follow the instructions to complete the entries, ensuring they account correctly for income tax expense, deferred income taxes, and income taxes payable based on the provided taxable income. Remember, accuracy in the Account Titles and Explanation column is essential for correctly categorizing the financial transactions.

Journal entry is the process of recording the business transactions in the books of accounts for the…

Answered: The following information is available…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

The following information is available for Marigold Corporation for 2020.

1.		Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024.
2.		Interest received on municipal bonds was $10,100.
3.		Rent collected in advance on January 1, 2020, totaled $56,700 for a 3-year period. Of this amount, $37,800 was reported as unearned at December 31, 2020, for book purposes.
4.		The tax rates are 40% for 2020 and 35% for 2021 and subsequent years.
5.		Income taxes of $308,000 are due per the tax return for 2020.
6.		No deferred taxes existed at the beginning of 2020.

### Journal Entries for Income Tax Expense, Deferred Income Taxes, and Income Taxes Payable (2020 & 2021)

Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $1,021,000 in 2021.

**Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.**

#### Journal Entries Template:

| Date | Account Titles and Explanation | Debit | Credit |
|------|--------------------------------|-------|--------|
| 2020 | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| 2021 | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |

This form provides a clear, organized way for students to practice journalizing income tax-related entries. Students should follow the instructions to complete the entries, ensuring they account correctly for income tax expense, deferred income taxes, and income taxes payable based on the provided taxable income. Remember, accuracy in the Account Titles and Explanation column is essential for correctly categorizing the financial transactions.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions