8. At year-end and while preparing this year's income taxes (which have not been accrued), you have identified the following book-tax differences for the year: You have prepaid all your insurance for next year, totaling $40,000. This amount is tax deductible at the time of payment. You incurred a $15,000 fine from the government, which is not deductible for tax purposes

What journal entries need to be recorded, and how does this affect the trial balance sheet?

Answer rating: 100% (QA)

To account for the booktax differences identified at yearend we need to record adjusting journal ent... View the full answer