The DeVille Company reported pretax accounting income on its income statement as follows:
$
Included in the income of was an installment sale of property in the amount of $ However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected on the installment sale was $ in $ in and
$ in
Included in the income was $ interest from investments in municipal governmental bonds.
The enacted tax rate for and was but during new tax legislation was passed reducing the tax rate to for
the years and beyond.
Required:
Prepare the yearend journal entries to record income taxes for the years
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
