AC 302 WEEK 3 Exercise 19 Question 9
The pretax financial income or loss figures for Jenny Spangler Company are as follows.
2009 $161,700
2010 254,300
2011 85,800
2012 (161,700 )
2013 (381,200 )
2014 123,100
2015 109,000
Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2009 and 2010 and a 40% tax rate for the remaining years.
Prepare the journal entries for the years 2011 to 2015 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Jenny Spangler Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation Debit Credit
2011
(To record income tax expense.)
2012
2013
(To record carryback.)
(To record carryforward.)
2014
2015
USA 
India
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