Please do not give image format Date Account Titles and Explanation20222023202420242025(To record loss carryback)(To record loss carryforward)Show Transcribed Text202420252026(To record loss carryforward)GDebitCredit10 1000DOLO The pretax financial income (or loss) figures for Sheffield Company are as follows.2021 $335,00020222023 (209,200)2024 (197,000)157,00020252026109,600117,000Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2021 and2022, and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2022 to 2026 to record income tax expense and the effects of the net operating losscarrybacks and carryforwards assuming Sheffield Company uses the carryback provision. All income and losses relate to normaloperations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (List all debitentries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)

A deferred tax asset is a potential future tax advantage resulting from transitory discrepancies in…

Answered: The pretax financial income (or loss)…

The pretax financial income (or loss) figures for Sheffield Company are as follows. 2021 $335,000 109,600 2023 (209,200) 2024 (197,000) 2025 157,000 2022 2026 117,000

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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Question

Please do not give image format

Date Account Titles and Explanation
2022
2023
2024
2024
2025
(To record loss carryback)
(To record loss carryforward)
Show Transcribed Text
2024
2025
2026
(To record loss carryforward)
G
Debit
Credit
10 1000
DOLO

The pretax financial income (or loss) figures for Sheffield Company are as follows.
2021 $335,000
2022
2023 (209,200)
2024 (197,000)
157,000
2025
2026
109,600
117,000
Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2021 and
2022, and a 20% tax rate for the remaining years.
Prepare the journal entries for the years 2022 to 2026 to record income tax expense and the effects of the net operating loss
carrybacks and carryforwards assuming Sheffield Company uses the carryback provision. All income and losses relate to normal
operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (List all debit
entries before credit entries. 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 O for the amounts. Record journal entries in the order presented in the problem.)

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