Wildhorse Ltd. reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2023. Wildhorse's policy is to carry back any tax losses first before carrying forward any remaining losses to future years. Year Income/(Loss) Tax Rate 2023 54,400 25% 2024 64,500 28% 2025 14,500 30% 2026 (144,600) 33% 2027 (69,300) 27% 2028 89,700 27% Prepare the journal entries for the years 2023 to 2028 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Wildhorse Ltd. follows IFRS. (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. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
Wildhorse Ltd. reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2023. Wildhorse's policy is to carry back any tax losses first before carrying forward any remaining losses to future years. Year Income/(Loss) Tax Rate 2023 54,400 25% 2024 64,500 28% 2025 14,500 30% 2026 (144,600) 33% 2027 (69,300) 27% 2028 89,700 27% Prepare the journal entries for the years 2023 to 2028 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Wildhorse Ltd. follows IFRS. (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. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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Question
Transcribed Image Text:Wildhorse Ltd. reported the following income for each of the years indicated. For each year, accounting income and income for tax
purposes were the same. All tax rates indicated were enacted by the beginning of 2023. Wildhorse's policy is to carry back any tax
losses first before carrying forward any remaining losses to future years.
Year
Income/(Loss) Tax Rate
2023
54,400
25%
2024
64,500
28%
2025
14,500
30%
2026
(144,600)
33%
2027
(69,300)
27%
2028
89,700
27%
Prepare the journal entries for the years 2023 to 2028 to record income taxes. Assume that, at the end of each year, the loss
carryforward benefits are judged more likely than not to be realized in the future. Wildhorse Ltd. follows IFRS. (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. List all debit entries before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
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