The pretax financial income (or loss) figures for Jerry Springer Company are as follows. 2009 $210,000 2010 180,000 2011 140,000 2012 (220,000) 2013 (230,000) 2014 90,000 2015 115,000 Pretax...

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Accounting

   The pretax financial income (or loss) figures forJerry Springer Company are as
   follows.
              2009         $210,000
              2010           180,000
              2011           140,000
              2012          (220,000)
              2013          (230,000)
              2014             90,000
              2015           115,000
   Pretax financial income (or loss) and taxableincome (or loss) were the same for all
years involved. Assume a 40% tax rate for 2009 and 2010 and a35% tax rate for the
remaining years.
   Instructions:
      Prepare the journal entries forthe years 2011 to 2015 (5 years) to record income tax
      expense and the effects of thenet operating loss carry-backs and carry-forwards
      assuming Jerry Springer Companyuses the carry-back provision. All income and
      losses relate to normaloperations. (In recording the benefits of a loss carry-forward,
      assume that no valuation accountis deemed necessary.)

Answer & Explanation Solved by verified expert

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Solution Income tax expenses for the year 2011 income tax expense Taxable income x 35 income tax expense 140000 x 35 49000 General journal Date Account Title and Explanation Post Ref Debit Credit 2011 Income tax expense 4900000 Income tax payable 4900000 Being tax is calculated and is a liability to be paid Income tax See Answer

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