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Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the...

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Accounting

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 20202023 are as follows:

Service Revenue Collections Pretax Accounting Income
2020 $ 724,000 $ 684,000 $ 250,000
2021 814,000 842,000 324,000
2022 774,000 766,000 292,000
2023 780,000 784,000 264,000

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%.

Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and 2023 income taxes.

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