The Information That Follows Pertains to Julia Company

question 119

Essay

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 $60,000
Prepaid expense 8,000
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 2016.
(c. )Pretax accounting income was $67,000 and taxable income was $8,000 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.Provide supporting computations.

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Definitions:

Being/Becoming

reflects on the philosophical concepts of existence (being) and the process of change leading to a future state (becoming).

Verbal Expression

The communication of thoughts, ideas, or feelings through spoken words or written language.

Asian Americans

U.S. residents of Asian descent, representing diverse cultures, languages, and histories.

Self-Disclosure

The act of revealing personal, private, or sensitive information about oneself to others.