Prepare journal entry for 2012 through 2015 included income


Assume the KPNG Company recognizes $12,000 gross profit from installment sales for financial accounting in 2012. The gross profit will be taxable at $3,000 this year and each year for the next three years. In addition, the company earns and collects $10,000 each year. The tax rate is 40%, but in 2014 a new tax rate of 30% is enacted to go effect for the year ended 2015. Prepare journal entry for 2012 through 2015? (Included: income tax expense, income tax payable, deferred tax liability.

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Financial Accounting: Prepare journal entry for 2012 through 2015 included income
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