Intermediate Accounting ll ch 16 6. The information that follows pertains to Richards Refrigeration, Incorporated:At December 31, 2024, temporary differences existed between the financial statement book values and the tax bases of the following:($ in millions) Book ValueTax BasisFuture Taxable (Deductible) AmountBuildings and equipment (net of accumulated depreciation)$ 120$ 90$ 30Prepaid insurance50050Liability-Loss contingency250(25)No temporary differences existed at the beginning of 2024.Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%.Required:Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024.What is the 2024 net income? General JournalRecord 2024 income taxesTransaction General JournalDebitCredit1 ### Transcription for Educational Website:**2024 Net Income Calculation**This interface provides a tool to calculate the 2024 net income.**Instructions:**- Enter your answer in millions. For example, if the net income is $5,000,000, you should enter "5".**Input Field:**- **Net income**: [Input box] million**Navigation:**- **Navigation Buttons:** - **General Journal**: Navigates to the general journal section. - **Required 2**: This button is inactive or disabled.This tool is designed to assist in financial calculations by simplifying the input process through a user-friendly form. ### Income Tax Calculation Table for 2024#### Instructions:Complete the table below to record income taxes for 2024.**Note:** - Amounts to be deducted should be entered with a minus sign. - Enter your answers in millions rounded to 2 decimal places (e.g., 5,500,000 should be entered as 5.50).---| Description | Amount (in millions) | Tax Rate | = | Tax (in millions) | Recorded as: ||----------------------------|----------------------|----------|------|-------------------|-----------------|| Pretax accounting income | $200.00 | | | | || Permanent differences | | | | | || Income subject to taxation | | × | | | || Temporary Differences | | × | = | | || | | × | = | | || | | × | = | | || Income taxable in current year | | | | | |#### Notes:- Ensure all entries in the table reflect accurate calculations.- For any value that decreases taxable income, input the value with a negative sign.- This table is a part of the preparation for the detailed financial documentation in the General Journal.#### Navigational Buttons:- < Required 1 Calculation- General Journal >Use these buttons to navigate through different sections of the report or return to previous stages of calculation.

Journal entry is the procedure for initially documenting commercial transactions in the books of accounts. For the purpose of recording the journal entry the double-entry system becomes the base. While recording the journal entry the transactions are recorded as and when occurs hence it is also known as Day Book. Journal entry types: Transfer entries Closing entries Adjusting entries Compound entries Answer 1 Journal entry: Answer 2) Computation of 2024 Net income is as follows: Net Income =Pretax Income- Income tax @25%=$200-$50=$150

Answered: The information that follows pertains…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Required:

Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024.
What is the 2024 net income?

General Journal

Record 2024 income taxes

Transaction	General Journal	Debit	Credit
1

### Transcription for Educational Website:

**2024 Net Income Calculation**

This interface provides a tool to calculate the 2024 net income.

**Instructions:**
- Enter your answer in millions. For example, if the net income is $5,000,000, you should enter "5".

**Input Field:**
- **Net income**: [Input box] million

**Navigation:**
- **Navigation Buttons:**
- **General Journal**: Navigates to the general journal section.
- **Required 2**: This button is inactive or disabled.

This tool is designed to assist in financial calculations by simplifying the input process through a user-friendly form.

### Income Tax Calculation Table for 2024

#### Instructions:
Complete the table below to record income taxes for 2024.

**Note:**
- Amounts to be deducted should be entered with a minus sign.
- Enter your answers in millions rounded to 2 decimal places (e.g., 5,500,000 should be entered as 5.50).

---

| Description | Amount (in millions) | Tax Rate | = | Tax (in millions) | Recorded as: |
|----------------------------|----------------------|----------|------|-------------------|-----------------|
| Pretax accounting income | $200.00 | | | | |
| Permanent differences | | | | | |
| Income subject to taxation | | × | | | |
| Temporary Differences | | × | = | | |
| | | × | = | | |
| | | × | = | | |
| Income taxable in current year | | | | | |

#### Notes:
- Ensure all entries in the table reflect accurate calculations.
- For any value that decreases taxable income, input the value with a negative sign.
- This table is a part of the preparation for the detailed financial documentation in the General Journal.

#### Navigational Buttons:
- < Required 1 Calculation
- General Journal >

Use these buttons to navigate through different sections of the report or return to previous stages of calculation.

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	Book Value	Tax Basis	Future Taxable (Deductible) Amount
Buildings and equipment (net of accumulated depreciation)	$ 120	$ 90	$ 30
Prepaid insurance	50	0	50
Liability-Loss contingency	25	0	(25)