Accounting and Taxable Income Assignment

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 2017-2020 are as follows: points eBook 2017 2018 2019 2020 Service Revenue $610,000 710,000 675,000 660,000 Collections $ 590,000 720,000 650,000 685,000 Pretax Accounting Income $150,000 215,000 185,000 165,000

Print References 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 40%. (Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017– 2020.) Required: 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup's 2019 income taxes and Alsup's 2020 income taxes. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field. Enter your answers in thousands.) View transaction list Journal entry worksheet TU (Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017- 2020.) ints Required: 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup's 2019 income taxes and Alsup's 2020 income taxes. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field. Enter your answers in thousands.) eBook Print View transaction list References 1 Record 2018 income taxes. 2 Record 2019 income taxes. 3 Record 2020 income taxes. Credit. .