c. Prepare the journal entry to record income taxes in Year 1, Year 2, and Year 3.
•Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank
(zero).
Date
Account Name
Dec. 31, Year 1 Deferred Tax Asset
Income Tax Expense
Deferred Tax Liability
Income Tax Payable
To record income tax expense
Date
Account Name
Dec. 31, Year 2 Deferred Tax Liability
Income Tax Expense
Deferred Tax Asset
Income Tax Payable
To record income tax expense
Date
Account Name
Dec. 31, Year 3 Deferred Tax Liability
Income Tax Expense
Deferred Tax Asset
Income Tax Payable
To record income tax expense
> > > >
> > > >
Dr.
10,000
Cr.
0x
0
0x
0
15,000 x
0
0x
>
Dr.
Cr.
0
0 x
0
0x
0
0x
0
0x
Dr.
Cr.
0
0x
0
0x
0
0x
0
0x
