Having finished your Intermediate accounting course with excellent grades, your boss called you to her office and gave you the following data for calendar 2020:

1. Gross profit on instalment sales recorded on the books was $ 150,000. Gross profit from collections of instalment receivables was $ 50,000.
2. Golf club dues were $ 3,800. Not allowed for tax purposes
3. Machinery was acquired in January 2020 for $ 300,000. Your company uses straight-line depreciation over a ten-year life (no residual value). For tax purposes, your company uses CCA at 14% for 2020.
4. Dividends received from a Canadian corporation were $ 4,000.
5. The estimated warranty liability related to 2020 sales was $ 19,600. Warranty repair costs paid during 2020 were $ 13,600. The remainder will be paid in 2021.
6. Pre-tax accounting income is $ 300,000. The enacted income tax rate is 25%.

Required

a) Prepare a schedule (starting with pre-tax accounting income) to calculate taxable income.

b) Prepare the required adjusting journal entries to record income taxes for 2020.