The pretax financial income (or loss) figures for Windsor Company are as follows. 2015 $169,000 2016 247,000 2017 79,000 2018 (169,000 ) 2019 (356,000 ) 2020 131,000 2021 99,000 Pretax financial income (or...

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Accounting

The pretax financial income (or loss) figures for WindsorCompany are as follows.
2015
$169,000
2016
247,000
2017
79,000
2018
(169,000 )
2019
(356,000 )
2020
131,000
2021
99,000

Pretax financial income (or loss) and taxable income (loss) werethe same for all years involved. Assume a 25% tax rate for 2015 and2016 and a 20% tax rate for the remaining years.

Prepare the journal entries for the years 2017 to 2021 to recordincome tax expense and the effects of the net operating losscarryforwards. All income and losses relate to normal operations.(In recording the benefits of a loss carryforward, assume that novaluation account is deemed necessary.) (Credit accounttitles are automatically indented when amount is entered. Do notindent manually. If no entry is required, select "No Entry" for theaccount titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
2017
enter an account title to record carryback
enter a debit amount
enter a credit amount
enter an account title to record carryback
enter a debit amount
enter a credit amount
2018
enter an account title to record carryforward
enter a debit amount
enter a credit amount
enter an account title to record carryforward
enter a debit amount
enter a credit amount
2019
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
2020
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
2021
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a credit amount
enter a debit amount
This is all of the information given in the problem. There is noother mention of time.

2015	$169,000
2016	247,000
2017	79,000
2018	(169,000	)
2019	(356,000	)
2020	131,000
2021	99,000

Account Titles and Explanation	Debit	Credit
2017
enter an account title to record carryback	enter a debit amount	enter a credit amount
enter an account title to record carryback	enter a debit amount	enter a credit amount
2018
enter an account title to record carryforward	enter a debit amount	enter a credit amount
enter an account title to record carryforward	enter a debit amount	enter a credit amount
2019
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
2020
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
2021
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a credit amount	enter a debit amount

Answer & Explanation Solved by verified expert

3.7 Ratings (643 Votes)

Answer Income tax expenses for the year 2017 Income tax expense Taxable income x 20 790000 x 20 15800 Date Account Title and Explanation Debit Credit 2017 Income tax expense 15800 Income tax payable 15800 Being tax is calculated and is a liability to be paid Income tax expenses See Answer

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