Solution-Prepare the year-end journal entries to record

Prepare the year-end journal entries to record income taxes

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Reference no: EM131003578

The DeVille Company reported pretax accounting income on its income statement as follows:
Included in the income of 2011 was an installment sale of property in the amount of $50,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $20,000 in 2012, $25,000 in 2013, and $5,000 in 2014.
Included in the 2013 income was $15,000 interest from investments in municipal bonds.
The enacted tax rate for 2011 and 2012 was 30%, but during 2012 new tax legislation was passed reducing the tax rate to 25% for the years 2013 and beyond.

Required:

Prepare the year-end journal entries to record income taxes for the years 2011-2014.

Reference no: EM131003578

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Prepare the year-end journal entries to record income taxes

Reference no: EM131003578

Reference no: EM131003578

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