FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Nash Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $53,100 in 2021, $57,800 in 2022, and $63,100 in 2023. Nash’s pretax financial income for 2020 is $312,000, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2020.
(a)
Compute taxable income and income taxes payable for 2020.
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$enter a dollar amount
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| Income taxes payable |
$enter a dollar amount
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(b)
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Account Titles and Explanation
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Debit
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Credit
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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c)
Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.”. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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Nash Corporation
Income Statement (Partial) choose the accounting period |
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select an income statement item
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$enter a dollar amount
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select an opening section name
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select an income statement item
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$enter a dollar amount
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select an income statement item
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enter a dollar amount
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enter a subtotal of the two previous amounts
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select a closing name for this statement
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$
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