The company had sales for the year of $100,000. Of these sales, only $70,000 was collected in
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The company had sales for the year of $100,000. Of these sales, only $70,000 was collected in cash. The other $30,000 is expected to be collected in cash next year. For this business, the tax rules stipulate that income is not taxed until it is collected in cash. The only expense is income tax expense, and the tax rate is 25% this year and in all future years. Make all journal entries necessary to record income tax expense for the year.
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Income statement Sales 100000 Income tax expense Current 70000 025 17500 ...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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