Question

please solve

CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 19-21 Your answer is partially correct. Try again The pretax financial income (or loss) Rigures for Jenny Spangler Company are as follows. 2016 2018 $160,000 250,000 30,000 (160,000) (380,000) 120,000 100,000 2020 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations, in recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary) (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 tities and enter for the amounts) Account Titles and Explanation Credit Debit 2017 Tincome Tax Expense 32,000 T Income Tax Payable Benefit Due to Loss Carry 72,000

Answer 1

Hi

Let me know in case you face any issue:

Solution: Journal entries Credit Date 2017 Debit $ 16,000 $ 16,000 2018 $ 32,000 $ 32,000 2019 $ 76,000 Account title and explaination Income Tax Expense (80000*20%) Income Tax Payable (To record the income tax expense for 2017) Deferred Tax Assets (160000*20%) Income Tax Expense (To record the income tax benefit for 2018) Deferred Tax Assets (380000*20%) Income Tax Expense (To record the income tax benefit for 2019) Income Tax Expense (120000*20%) Deferred Tax Assets (To record the Income tax expense for 2020) Income Tax Expense (100000*20%) Deferred Tax Assets (To record the Income tax expense for 2021) $ 76,000 2020 $ 24,000 $ 24,000 2021 $ 20,000 $ 20,000