A. J. Johnson & Co. recorded certain revenues on its books in 2013 and 2014 of $15,400

Question:

A. J. Johnson & Co. recorded certain revenues on its books in 2013 and 2014 of $15,400 and $16,600, respectively. However, such revenues were not subject to income taxation until 2015. The company records reveal pretax financial income and taxable income for the 3-year period as follows:

_____________________________Financial Income __________Taxable Income

2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $44,200 .......................... $28,800

2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,200 ........................... 21,600

2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,100 ........................... 53,100

Assume that Johnson's tax rate is 35% for all periods.

Instructions:

Prepare the journal entries necessary at the end of each year to record income taxes.

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Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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