Prepare journal entry to record income for captins catering

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Reference no: EM133000295

Captins Catering had temporary difference related to the following future(deductible) or taxable amounts on December 31,2020

a) Prepaid Expenses $12,000

b) Depreciation Expense $45,000 and

c) Warranty Expense($24,000). There were no temporary differences on January income. The tax rate is 35%.

Problem 1: Prepare the journal entry to record income for 2020.

Reference no: EM133000295

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