Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the deville company reported pretax accounting inc

The DeVille Company reported pretax accounting income on its income statement as follows: 2021 $ 420,000 2022 340,000 2023 410,000 2024 450,000 Included in the income...

80.2K

Verified Solution

Question

Accounting

The DeVille Company reported pretax accounting income on itsincome statement as follows:

2021$420,000
2022340,000
2023410,000
2024450,000


Included in the income of 2021 was an installment sale of propertyin the amount of $58,000. However, for tax purposes, DeVillereported the income in the year cash was collected. Cash collectedon the installment sale was $23,200 in 2022, $29,000 in 2023, and$5,800 in 2024.

Included in the 2023 income was $24,000 interest from investmentsin municipal governmental bonds.

The enacted tax rate for 2021 and 2022 was 40%, but during 2022,new tax legislation was passed reducing the tax rate to 25% for theyears 2023 and beyond.

Required:
Prepare the year-end journal entries to record income taxes for theyears 2021–2024. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)

Answer & Explanation Solved by verified expert
4.0 Ratings (626 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

Describe the backgrounds and philosophies of Patriots and Loyalists. Why did colonists with such diverse individual...

Accounting
1.2K views

An investor has two bonds in his portfolio that have a face value of $1,000 and...

Physics
1.2K views

3 A tank is filled with water to a height H A hole is made...

Basic Math
1.2K views

Find all angles between 0 and 360 such that sec =2.705. Round to the nearest...

Calculus
1.2K views

b 4 x dx 5

Algebra
1.2K views

Write the given phrase as an algebraic expression. Use the variable x to represent each...

Algebra
1.2K views

On square paper or square grid paper draw rectangles with a perimeter of 48 units...

Algebra
1.2K views

Shawn Rebecca and Karen went to an office supply store Shawn bought 6 pencils 6...

Accounting
1.2K views

d. 66. The objectives of internal control are to a. control the internal organization of...

Accounting
1.2K views

Under a periodic inventory system accounting records continuously disclose the amount of inventory O a...

Accounting
1.2K views

Required information Question 1 [The following information applies to the questions displayed...

Accounting
1.2K views

Plan 1 Plan 2 Issue 10% Bonds (at face) $400,000 Issue $10 par Common Stock...