The pretax financial income (or loss) figures for Blue Company are as follows. 2021 $360,000 2022...

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The pretax financial income (or loss) figures for Blue Company are as follows. 2021 $360,000 2022 2023 (225,200) 2024 (202,000) 2025 117,600 2026 162,000 122,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2021 and 2022, and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2022 to 2026 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Blue Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) The pretax financial income (or loss) figures for Blue Company are as follows. 2021 $360,000 2022 2023 (225,200) 2024 (202,000) 2025 117,600 2026 162,000 122,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2021 and 2022, and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2022 to 2026 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Blue Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)

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The journal entries for Blue Company from 2022 to 2026 are as follows assuming that Blue Company uses the carryback provision and that no valuation ac... View the full answer