Question: Refer to the data in Practice 16-1. Those data are for Year 1. In Year 2, the company had sales for the year of $100,000

Refer to the data in Practice 16-1. Those data are for Year 1. In Year 2, the company had sales for the year of $100,000 but collected $130,000 in cash-all of the cash for the sales for Year 2 plus the unpaid $30,000 for sales made in Year 1. The tax rate in Year 2 is still 25%. Make all journal entries necessary to record income tax expense for Year 2.

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Sales 100000 Income tax expense Current 130000 025 32500 Deferred 30000 025 7500 Total inc... View full answer

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