Pacman Ltd commenced business in 2015 For the year ending 31 12 2016, they incur a loss of $2 2 million It is not anticipated that there will be further losses as the company becomes more established in the market and will generate taxable profit in subsequent years Profits before tax for subsequen...

Step 1 Journal Entry Journal entry is used to record the business transac ...

Pacman Ltd commenced business in 2015. For the year-ending 31/12/2016, they incur a loss of $2.2 million.

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Pacman Ltd commenced business in 2015. For the year-ending 31/12/2016, they incur a loss of $2.2 million. It is not anticipated that there will be further losses as the company becomes more established in the market and will generate taxable profit in subsequent years.

Profits before tax for subsequent years are:

2017: $560,000

2018: $890,000

2019: $970,000

There are no temporary differences between carrying value of assets or liabilities.

Tax rate is 30%.

Prepare journal entries for 2017, 2018 and 2019