The DeVille Company reported pretax accounting income on its income statement as follows: ...
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Accounting
The DeVille Company reported pretax accounting income on its income statement as follows:
| 2018 | $ | 365,000 | |
| 2019 | 285,000 | ||
| 2020 | 355,000 | ||
| 2021 | 395,000 | ||
Included in the income of 2018 was an installment sale of property in the amount of $34,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $13,600 in 2019, $17,000 in 2020, and $3,400 in 2021. Included in the 2020 income was $12,000 interest from investments in municipal bonds. The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond. Required: Prepare the year-end journal entries to record income taxes for the years 20182021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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