Alsup Consulting sometimes performs services for which it receives
payment at the conclusion of the engagement, up to six months after
services commence. Alsup recognizes service revenue for financial
reporting purposes when the services are performed. For tax purposes,
revenue is reported when fees are collected. Service revenue, collections,
and pretax accounting income for are as follows:
There are no differences between accounting income and taxable income
other than the temporary difference described above. The enacted tax rate
for each year is
Hint: You will find it helpful to prepare a schedule that shows the balances
in service revenue receivable at December
Required:
to Prepare the appropriate journal entries to record Alsup's
income taxes, income taxes, and income taxes.
Note: If no entry is required for a transactionevent select No journal
entry required" in the first account field. Enter your answers in whole
dollars.
