I am preparing the journal entries to record income taxm deferred income taxes, and income taxpayable for 2012 and 2013 and assume taxable income was$985,700 in 2013 where do I begin at?

Problem 19-1

The following information is available for Remmers Corporation for 2012.
1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $130,400. This difference will reverse in equal amounts of $32,600 over the years 2013–2016.
2. Interest received on municipal bonds was $15,900.
3. Rent collected in advance on January 1, 2012, totaled $64,200 for a 3-year period. Of this amount, $42,800 was reported as unearned at December 31, 2012, for book purposes.
4. The tax rates are 50% for 2012 and 45% for 2013 and subsequent years.
5. Income taxes of $328,100 are due per the tax return for 2012.
6. No deferred taxes existed at the beginning of 2012.






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(a)


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Compute taxable income for 2012.
Taxable income for 2012 $

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(b)


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Compute pretax financial income for 2012.
Pretax financial income for 2012 $

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(c)


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Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2012 and 2013. Assume taxable income was $985,700 in 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
2012















2013


















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