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Exercise 19-8 (Part Level Submission)
Culver Company has the following two temporary differences between its income tax expense and
income taxes payable.
2017
Pretax financial income
Excess depreciation expense on tax return
Excess warranty expense in financial income
Taxable income 2018 $849,000
(30,800)
21,000
$839,200 $883,000
(38,900)
9,600
$853,700 2019
$961,000
(10,300)
8,000
$958,700 The income tax rate for all years is 40%. (a) Your answer is correct.
Assuming there were no temporary differences prior to 2017, prepare the journal entry to record
income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and
2019. (Credit account titles are automatically indented when amount is entered. Do
not indent manually. If no entry is required, select "No Entry" for the account titles
and enter 0 for the amounts.)
Account Titles and Explanation Debit Credit 2017
Income Tax Expe 339600 Deferred Tax Ass 8400 Income Tax Paya 335680 Deferred Tax Liab 12320 2018
Income Tax Expe 353200 Deferred Tax Ass 3840 Income Tax Paya 341480 Deferred Tax Liab 15560 2019
Income Tax Expe 384400 Deferred Tax Ass 3200 Income Tax Paya 383480 Deferred Tax Liab 4120 Click if you would like to Show Work for this
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LINK TO TEXT Attempts: 1 of 3 used (b) Your answer is partially correct. Try again.
Indicate how deferred taxes will be reported on the 2019 balance sheet. Culver’s product warranty
is for 12 months.
Culver Company
Balance Sheet
December 31, 2019 Current Liabilities
Deferred Tax Liab Click if you would like to Show Work for this question: $
920 Open Show
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