Question

At the end of 2016, Flint Company has $181,900 of cumulative temporary differences that will result in reporting the following future taxable amounts.

2017		$61,000
2018		49,700
2019		41,800
2020		29,400
		$181,900

Tax rates enacted as of the beginning of 2015 are:

2015 and 2016		40	%
2017 and 2018		30	%
2019 and later		25	%

Flint’s taxable income for 2016 is $315,000. Taxable income is expected in all future years.

(a) Prepare the journal entry for Flint to record income taxes payable, deferred income taxes, and income tax expense for 2016, assuming that there were no deferred taxes at the end of 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

(b) Prepare the journal entry for Flint to record income taxes payable, deferred income taxes, and income tax expense for 2016, assuming that there was a balance of $23,100 in a Deferred Tax Liability account at the end of 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

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Answer 1