Exercise 1911 59900 49400 38000 28500 175800 Account Titles

Exercise 19-11

$59,900

49,400

38,000

28,500

$175,800

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

Open Show Work

Exercise 19-11 At the end of 2016, Wildhorse Company has $175,800 of cumulative temporary differences that will result in reporting the following future taxable amounts. 2017 $59,900 2018 49,400 2019 38,000 2020 28,500 $175,800 Tax rates enacted as of the beginning of 2015 are: 2015 and 2016 40 % 2017 and 2018 30 % 2019 and later 25 % Wildhorse’s taxable income for 2016 is $305,100. Taxable income is expected in all future years. (a) Prepare the journal entry for Wildhorse to record income taxes payable, deferred income taxes, and income tax expense for 2016, assuming that there were no deferred taxes at the end of 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the journal entry for Wildhorse to record income taxes payable, deferred income taxes, and income tax expense for 2016, assuming that there was a balance of $21,300 in a Deferred Tax Liability account at the end of 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

Solution

a) Assuming there were no deferred tax at end of 2015 :-

Journal Entry :-

Working Note :-

b) Deferred Tax Expenses :-

Journal Entry :-