Problem - The DeVille Company reported pretax accounting income on its income statement as follows:
|
2016
|
$365,000
|
|
2017
|
285,000
|
|
2018
|
355,000
|
|
2019
|
395,000
|
Included in the income of 2016 was an installment sale of property in the amount of $34,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $13,600 in 2017, $17,000 in 2018, and $3,400 in 2019.
Included in the 2018 income was $12,000 interest from investments in municipal bonds.
The enacted tax rate for 2016 and 2017 was 30%, but during 2017 new tax legislation was passed reducing the tax rate to 25% for the years 2018 and beyond.
Required: Prepare the year-end journal entries to record income taxes for the years 2016-2019.