70.2K

Verified Solution

Link Copied!

The accounting records of Sunland Inc. show the following data for $2025$:

Life insurance expense on officer's was $$7,000.$

Equipment was acquired in early January for $$432,000.$ Straight$-$line depreciation over a $6-$year life is used, with no salvage

value. For tax purposes, Sunland used a $30\%$ rate to calculate depreciation.

Interest revenue on municipal bonds totaled $$3,600.$

Product warranties were estimated to be $$93,000$ in $2025.$ Actual repair and labor costs related to the warranties in $2025$

were $$24,000.$ The remainder is estimated to be paid evenly in $2026$ and $2027.$

Sales on an accrual basis were $$494,000.$ For tax purposes, $$385,000$ was recorded on the installment$-$sales method.

Fines incurred for securities violations were $$10,300.$

Pretax financial income was $$468,000.$ The tax rate is $30\%.$

Prepare the journal entry for $2025$ to record income taxes payable, income tax expense, and deferred income taxes. $($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. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Income Tax Payable

Income Tax Expense

defer

eTextbook and Media

List of Accounts

Allowance to Reduce Deferred Tax Asset to Expected Realizable Value

Benefit Due to Loss Carryback

Benefit Due to Loss Carryforward

Deferred Tax Asset

Deferred Tax Liability

Income Tax Expense

Income Tax Payable

Income Tax Refund Receivable

No Entry

Answer & Explanation Solved by verified expert

See Answer