Question

Roberts Corp. reports pretax accounting income of $184,000, but due to a single temporary difference, taxable income is only $142,000. At the beginning of the year, no temporary differences existed. Roberts is subject to a tax rate of 25%.

Required:

1) Prepare the compound journal entry to record Roberts Corp.'s income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Accounts titles and Explanation	Debit ($)	Credit ($)
Income tax expense    - Balancing Fig.	$ 46,000
Deferred tax liability               ( $ 184,000 (-) $ 142,000) x 25%		$ 10,500
Income tax payable              ( $ 142,000 x 25% )		$ 35,500
(To record Roberts Corp.'s income tax)