Deferred tax : Deferred Tax is a liability account that shows the reconciliation amount that occurred due to differences between the estimated income tax amount (Income Tax Expense account) and the outstanding amount of income tax (Income Tax Payable account). Contingency: Loss contingency is a provision created in advance for the probable future expense which depends upon the expected future event such as adverse outcome of a lawsuit. To journalize: The effects on Incorporation SS records as on December 31, 2018 for each item:

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Chapter 20, Problem 20.16P

To determine

Deferred tax:

Deferred Tax is a liability account that shows the reconciliation amount that occurred due to differences between the estimated income tax amount (Income Tax Expense account) and the outstanding amount of income tax (Income Tax Payable account).

Contingency:

Loss contingency is a provision created in advance for the probable future expense which depends upon the expected future event such as adverse outcome of a lawsuit.

To journalize: The effects on Incorporation SS records as on December 31, 2018 for each item:

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