J-Matt, Inc., had pretax accounting income of $307,000 and taxable income of $328,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $21,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022–2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Determine the amounts necessary to record J-Matt's income taxes for 2021 and prepare the appropriate journal entry. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. General Income Tax Journal Prepare the appropriate journal entry. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 1 Income tax expense 75,000 X Deferred tax asset 7,000 Income tax payable 82,000 Income Tax General Journal
J-Matt, Inc., had pretax accounting income of $307,000 and taxable income of $328,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $21,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022–2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Determine the amounts necessary to record J-Matt's income taxes for 2021 and prepare the appropriate journal entry. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. General Income Tax Journal Prepare the appropriate journal entry. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 1 Income tax expense 75,000 X Deferred tax asset 7,000 Income tax payable 82,000 Income Tax General Journal
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 9DQ
Related questions
Question
I need help with the two marked wrong. Thanks.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
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.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning