At the end of 2019, Vaughn Company has $181,600 of cumulative temporary differences that will result in reporting the following future taxable amounts. 2020   $60,500 2021   50,200 2022   41,700 2023   29,200     $181,600 Tax rates enacted as of the beginning of 2018 are: 2018 and 2019   40 % 2020 and 2021   30 % 2022 and later   25 % Vaughn’s taxable income for 2019 is $329,300. Taxable income is expected in all future years. (a) Prepare the journal entry for Vaughn to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there were no deferred taxes at the end of 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit                   (b) Prepare the journal entry for Vaughn to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there was a balance of $22,300 in a Deferred Tax Liability account at the end of 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...
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At the end of 2019, Vaughn Company has $181,600 of cumulative temporary differences that will result in reporting the following future taxable amounts.

2020  
$60,500
2021  
50,200
2022  
41,700
2023  
29,200
   
$181,600

Tax rates enacted as of the beginning of 2018 are:

2018 and 2019   40 %
2020 and 2021   30 %
2022 and later   25 %

Vaughn’s taxable income for 2019 is $329,300. Taxable income is expected in all future years.

(a) Prepare the journal entry for Vaughn to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there were no deferred taxes at the end of 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
 
 
 

(b) Prepare the journal entry for Vaughn to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there was a balance of $22,300 in a Deferred Tax Liability account at the end of 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
 
 
 
 

 

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