The DeVille Company reported pretax accounting income on Its income statement as follows: 2021 2022 2023 $375,000 295,000 365,000 405,000 2024 Included in the income of 2021 was an installment sale of property in the amount of $38,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $15,200 in 2022, $19,000 in 2023, and $3,800 in 2024. Included in the 2023 income was $14,000 interest from investments in municipal governmental bonds. The enacted tax rate for 2021 and 2022 was 40%, but during 2022, new tax legislation was passed reducing the tax rate to 25% for the years 2023 and beyond. Required: Prepare the year-end journal entries to record income taxes for the years 2021-2024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The DeVille Company reported pretax accounting income on Its income statement as follows: 2021 2022 2023 $375,000 295,000 365,000 405,000 2024 Included in the income of 2021 was an installment sale of property in the amount of $38,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $15,200 in 2022, $19,000 in 2023, and $3,800 in 2024. Included in the 2023 income was $14,000 interest from investments in municipal governmental bonds. The enacted tax rate for 2021 and 2022 was 40%, but during 2022, new tax legislation was passed reducing the tax rate to 25% for the years 2023 and beyond. Required: Prepare the year-end journal entries to record income taxes for the years 2021-2024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...
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Transcribed Image Text:The DeVille Company reported pretax accounting income on Its income statement as follows:
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2021
2022
2023
2024
$375,000
295,000
365,000
405,000
Included in the income of 2021 was an installment sale of property in the amount of $38,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected on the installment sale was $15,200 in 2022, $19,000 in 2023, and
$3,800 in 2024.
22
Included in the 2023 income was $14,000 interest from investments in municipal governmental bonds.
The enacted tax rate for 2021 and 2022 was 40%, but during 2022, new tax legislation was passed reducing the tax rate to 25% for
the years 2023 and beyond.
Required:
Prepare the year-end journal entries to record income taxes for the years 2021-2024. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)
View transactlon Ilst
Journal entry worksheet
3.
4
Record 2021 income taxes.
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