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Recording and Reporting Multiple Temporary Differences The records of Cross Corporation provided the following income tax allocation data. Taxable income Depreciation expense Bad debt expense Pretax GAAP income o The depreciation adjustment results from a difference between the GAAP basis and tax basis of depreciable equipment. • The bad debt expense adjustment results from a difference between the GAAP basis and tax basis of net accounts receivable. o The deferred tax accounts have a zero balance at the start of 2020. Tax rate is 25%. Required Journal Entries Financial Statement Presentation a. Record the income tax journal entry on December 31, 2020. b. Record the income tax journal entry on December 31, 2021. c. Record the income tax journal entry on December 31, 2022. d. Record the income tax journal entry on December 31, 2023. • Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. • Note: If the journal entry includes an extra line that is not required, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero) in the very last row of the journal entry. a. Date Dec. 31, 2020 b. Date Dec. 31, 2021 C. 2020 2021 2022 2023 $60,000 $80,000 $85,000 $75,000 15,000 (5,000) (5,000) (5,000) (20,000) (10,000) (18,000) 25,000 $55,000 $65,000 $62,000 $95,000 Date Dec. 31, 2022 d. Date Dec. 31, 2023 Account Name Account Name Account Name Account Name ● + + + ● ● + + + + + + + + Dr. Dr. Dr. Dr. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cr. Cr. Cr. Cr. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Recording and Reporting Multiple Temporary Differences The records of Cross Corporation provided the following income tax allocation data. Taxable income Depreciation expense Bad debt expense Pretax GAAP income o The depreciation adjustment results from a difference between the GAAP basis and tax basis of depreciable equipment. • The bad debt expense adjustment results from a difference between the GAAP basis and tax basis of net accounts receivable. o The deferred tax accounts have a zero balance at the start of 2020. Tax rate is 25%. Required Journal Entries Financial Statement Presentation a. Record the income tax journal entry on December 31, 2020. b. Record the income tax journal entry on December 31, 2021. c. Record the income tax journal entry on December 31, 2022. d. Record the income tax journal entry on December 31, 2023. • Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. • Note: If the journal entry includes an extra line that is not required, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero) in the very last row of the journal entry. a. Date Dec. 31, 2020 b. Date Dec. 31, 2021 C. 2020 2021 2022 2023 $60,000 $80,000 $85,000 $75,000 15,000 (5,000) (5,000) (5,000) (20,000) (10,000) (18,000) 25,000 $55,000 $65,000 $62,000 $95,000 Date Dec. 31, 2022 d. Date Dec. 31, 2023 Account Name Account Name Account Name Account Name ● + + + ● ● + + + + + + + + Dr. Dr. Dr. Dr. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cr. Cr. Cr. Cr. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Intermediate Accounting: Reporting And Analysis
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 1C
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Required Journal Entries Financial Statement Presentation e. Prepare the income tax section of the income statement for 2020 and provide the disclosure of current and deferred tax expense. f. Indicate the deferred income tax amount that would be recognized on the balance sheet at December 31, 2020. • Note: Do not use negative signs with your answers. e. Partial Income Statement For the year ended December 31, 2020 Income before income taxes Income tax expense Net income Financial Statement Disclosure Current tax expense Total income tax expense f. Balance Sheet, Dec. 31 ♦ $ $ $ 2020 $ 2020 0 0 0 0 $ Please answer all parts of the question. OO 0 0 0
Transcribed Image Text:Required Journal Entries Financial Statement Presentation e. Prepare the income tax section of the income statement for 2020 and provide the disclosure of current and deferred tax expense. f. Indicate the deferred income tax amount that would be recognized on the balance sheet at December 31, 2020. • Note: Do not use negative signs with your answers. e. Partial Income Statement For the year ended December 31, 2020 Income before income taxes Income tax expense Net income Financial Statement Disclosure Current tax expense Total income tax expense f. Balance Sheet, Dec. 31 ♦ $ $ $ 2020 $ 2020 0 0 0 0 $ Please answer all parts of the question. OO 0 0 0
Recording and Reporting Multiple Temporary Differences The records of Cross Corporation provided the following income tax allocation data. Taxable income Depreciation expense Bad debt expense Pretax GAAP income Required • The depreciation adjustment results from a difference between the GAAP basis and tax basis of depreciable equipment. • The bad debt expense adjustment results from a difference between the GAAP basis and tax basis of net accounts receivable. o The deferred tax accounts have a zero balance at the start of 2020. Tax rate is 25%. a. Journal Entries a. Record the income tax journal entry on December 31, 2020. b. Record the income tax journal entry on December 31, 2021. c. Record the income tax journal entry on December 31, 2022. d. Record the income tax journal entry on December 31, 2023. • Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. • Note: If the journal entry includes an extra line that is not required, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero) in the very last row of the journal entry. Date Dec. 31, 2020 b. Date Dec. 31, 2021 C. d. Date Dec. 31, 2022 2020 2021 2022 2023 $60,000 $80,000 $85,000 $75,000 15,000 (5,000) (5,000) (5,000) (20,000) (10,000) (18,000) 25,000 $55,000 $65,000 $62,000 $95,000 Date Dec. 31, 2023 Financial Statement Presentation Account Name Account Name Account Name Account Name + + + + + + + + + + ● + + + Dr. Dr. Dr. Dr. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cr. Cr. Cr. Cr. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Transcribed Image Text:Recording and Reporting Multiple Temporary Differences The records of Cross Corporation provided the following income tax allocation data. Taxable income Depreciation expense Bad debt expense Pretax GAAP income Required • The depreciation adjustment results from a difference between the GAAP basis and tax basis of depreciable equipment. • The bad debt expense adjustment results from a difference between the GAAP basis and tax basis of net accounts receivable. o The deferred tax accounts have a zero balance at the start of 2020. Tax rate is 25%. a. Journal Entries a. Record the income tax journal entry on December 31, 2020. b. Record the income tax journal entry on December 31, 2021. c. Record the income tax journal entry on December 31, 2022. d. Record the income tax journal entry on December 31, 2023. • Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. • Note: If the journal entry includes an extra line that is not required, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero) in the very last row of the journal entry. Date Dec. 31, 2020 b. Date Dec. 31, 2021 C. d. Date Dec. 31, 2022 2020 2021 2022 2023 $60,000 $80,000 $85,000 $75,000 15,000 (5,000) (5,000) (5,000) (20,000) (10,000) (18,000) 25,000 $55,000 $65,000 $62,000 $95,000 Date Dec. 31, 2023 Financial Statement Presentation Account Name Account Name Account Name Account Name + + + + + + + + + + ● + + + Dr. Dr. Dr. Dr. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cr. Cr. Cr. Cr. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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