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.
