The DeVille Company reported pretax accounting income on itsincome statement as follows:
| | | |
| 2021 | $ | 450,000 | |
| 2022 | | 370,000 | |
| 2023 | | 440,000 | |
| 2024 | | 480,000 | |
|
Included in the income of 2021 was an installment sale of propertyin the amount of $70,000. However, for tax purposes, DeVillereported the income in the year cash was collected. Cash collectedon the installment sale was $28,000 in 2022, $35,000 in 2023, and$7,000 in 2024.
Included in the 2023 income was $30,000 interest from investmentsin municipal governmental bonds.
The enacted tax rate for 2021 and 2022 was 40%, but during 2022,new tax legislation was passed reducing the tax rate to 25% for theyears 2023 and beyond.
Required:
Prepare the year-end journal entries to record income taxes for theyears 2021–2024. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)
