Question: A. J. Johnson & Co. recorded certain revenues on its books in 2011 and 2012 of $15,400 and $16,600, respectively. However, such revenues were not

A. J. Johnson & Co. recorded certain revenues on its books in 2011 and 2012 of $15,400 and $16,600, respectively. However, such revenues were not subject to income taxation until 2013. The company records reveal pretax financial income and taxable income for the 3-year period as follows:

Assume that Johnson's tax rate is 40% for all periods.

Instructions:
Prepare the journal entries necessary at the end of each year to record incometaxes.

Financial Income Taxable Income 2011. 2012 2013 $44,200 38,200 21.100 $28.800 21.600 53.100

Step by Step Solution

★★★★★

3.28 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

2011 Income Tax Expense 17680 Income Taxes Payable 11520 Deferred Tax Liability x Noncurrent 6160 In... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

92-B-A-I-T (186).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Prepare the journal entries necessary to record Dao Companys following stock transactions during 2014: Oct. 1 Purchased 2,000 shares of its own $2 par value common stock for $20 per share, the...

Prepare the journal entries necessary to record the following transactions and economic events for Magnetawan Ltd. (Magnetawan): a. During 2018, Magnetawan had cash sales of $175,000 and credit sales...

Prepare all journal entries necessary to reflect the use of the percentage- of completion method in 2015 for CCC BE-8-18 In Be8-18 Contract price$85,000 2015 Actual construction costs incurred during...

Problem 16-44 1 2 Life Cycle of a Temporary Difference A. J. Johnson & Co. recorded certain revenues on its books in 2015 and 2016 of $15,400 and $16,600, respectively. However, such revenues were...

Sandtrap Company recorded certain revenues of $12,000 and $16,000 on its books in 2010 and 2011, respectively. However, these revenues were not subject to income taxation until 2012. Company records...

with solutions Recording Accrual of Compensated Absences John Ackley and Susan Baldwin are employees of Clarion Company. Both John and Susan work 8 hours a day and are paid monthly on the last day of...

Prepare an Excel sheet summary comparison summary that addresses the following: What type of pension fund does the state provide to employees How is the pension fund actually funded - who pays for it...

HiPaper will be: IV. leases ( 1-2 pages) VI. Statement of Changes in Financial Position ( 1-2 pages) VII: Report for CEO (only this part). (3-5 pages) The company we are using is Target's K-10...

What was the acquisition premium and what do you conclude from it regarding the fairness of the deal? What was the market reaction to the acquisition announcement and what do you conclude from it...

Problem Determine the x and y components of the forces shown below in Fig P-001. F = 50 kN 45% 12 F = 45 KN 30 F = 58 KN F4 = 40 kN Figure P-001 X

Anderson Cabinets began operations during 2008. During the initial years of operations, the company invested primarily in fixed assets to promote growth. During 2014, H. Hurst, the company president,...

if a bond is junior or subordinated it: must give preference to senior creditors in the event of default is a secondary to equity have a higher priority status than specified creditors

Search the internet for an entrepreneurial business that is not technological and seems to make only light use of digitalization. Describe the business and its surroundings (e.g., country, sector,...

Derrick Company establishes a stock-appreciation rights program that entitles its new president, Dan Scott, to receive cash for the difference between the market price of the stock and a...

The following two items appeared on the Internet concerning the GAAP requirement to expense stock options. WASHINGTON, D.C.February 17, 2005 Congressman David Dreier (RCA), Chairman of the House...

I have a dataset that has Temperatures, Elevations, and Snowfall Depths for various mountain tops around the world. Which combination of visual channels will allow people to best analyze that data? 1...

what is the t statistics what is the p value 10.3.17-T Question Help A credit score is used by credit agencies (such as mortgage companies and banks) to assess the creditworthiness of individuals....

Explain the dividend discount model for stock valuation and its relationship to the CAPM model. Please be as detailed as possible, as if your were presenting a slide on this topic.