The information that follows pertains to Julia Company:
(a.) Temporary differences for the year 2013 are summarized below.
Expenses deducted in the tax return, but not included in the income statement: Expenses reported in the income statement, but not deducted in the tax return:
Warranty expense 9,000
(b.) No temporary differences existed at the beginning of 2013.
(c.) Pretax accounting income was $67,000 and taxable income was $8,000 for 2013.
(d.) There were no permanent differences.
(e.) The tax rate is 30%.
Required:
Prepare the journal entry to record the tax provision for 2013. Provide supporting computations.

Question

The information that follows pertains to Julia Company:
(a.) Temporary differences for the year 2013 are summarized below.
Expenses deducted in the tax return, but not included in the income statement:  Expenses reported in the income statement, but not deducted in the tax return:
Warranty expense 9,000
(b.) No temporary differences existed at the beginning of 2013.
(c.) Pretax accounting income was $67,000 and taxable income was $8,000 for 2013.
(d.) There were no permanent differences.
(e.) The tax rate is 30%.
Required:
Prepare the journal entry to record the tax provision for 2013. Provide supporting computations.

Quizplus · Accepted Answer

The Answer of The information that follows pertains to Julia Company:
(a.) Temporary differences for the year 2013 are summarized below.
Expenses deducted in the tax return, but not included in the income statement:  Expenses reported in the income statement, but not deducted in the tax return:
Warranty expense 9,000
(b.) No temporary differences existed at the beginning of 2013.
(c.) Pretax accounting income was $67,000 and taxable income was $8,000 for 2013.
(d.) There were no permanent differences.
(e.) The tax rate is 30%.
Required:
Prepare the journal entry to record the tax provision for 2013. Provide supporting computations.

The Information That Follows Pertains to Julia Company