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SouthCo reports pretax accounting income of $300,000 and taxable income is $370,000. At the beginning...

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Accounting

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SouthCo reports pretax accounting income of $300,000 and taxable income is $370,000. At the beginning of the year, no temporary differences existed. Assuming a tax rate of 39%, prepare the appropriate journal entry to record SouthCo's income taxes. Assume SouthCo's year end is December 31. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Journal Date Account/Explanation 31/Dec Current tax expense Deferred tax liability... Income tax payable. income tax Page G9 PR Debit Credit 117,000 27,300 144,300 Marking: 'Current tax expense' should be debited for the amount of $144,300, but you have not done this. This will cost you 1 mark. Current tax expense = $370,000 x 39% You have not included the 'Deferred tax asset' account in this journal entry. This will cost you 2 marks You have not included the 'Deferred tax income' account in this journal entry. This will cost you 2 marks 'Deferred tax liability' should not have been included in this journal entry. Any amounts entered for this account will not be evaluated

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