The information that follows pertains to Julia Company: ...
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Accounting
| The information that follows pertains to Julia Company: | |
| (a.) | Temporary differences for the year 2016 are summarized below. |
| Expenses deducted in the tax return, but not included in the income statement: | |
| Depreciation $57,000 | |
| Prepaid expense 7,700 | |
| Expenses reported in the income statement, but not deducted in the tax return: | |
| Warranty expense 8,700 | |
| (b.) | No temporary differences existed at the beginning of 2016. |
| (c.) | Pretax accounting income was $63,700 and taxable income was $7,700 for 2016. |
| (d.) | There were no permanent differences. |
| (e.) | The tax rate is 30%. |
| Required: |
| Prepare the journal entry to record the tax provision for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
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