In 2021, DFS Medical Supply collected rent revenue for 2022 tenant occupancy. For income tax reporting, the
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In 2021, DFS Medical Supply collected rent revenue for 2022 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy the rental property. The deferred portion of the rent collected in 2021 amounted to $300,000 at December 31, 2021. DFS had no temporary differences at the beginning of the year.
Required:
Assuming an income tax rate of 25% and 2021 income tax payable of $950,000, prepare the journal entry to record income taxes for 2021.
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Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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