Example - Journal Entry Calculations

Contents

Current Provision Journal Entry

2016 Current Provision Journal Entry

Journal Entry Calculation (B/S)

2016 Journal Entry Calculation - Deferred Tax Provision

Deferred Tax Provision

	Debits	Credits
Deferred Tax Asset/Liability	207,813
Deferred Tax Expense		207,813

Journal Entry Calculation (I/S)

Total Deferred Provision

	Debits	Credits
Deferred Tax Asset/Liability	207,813
Deferred Tax Expense		207,813

Deferred Provision Journal Entry

(b/s approach)

Deferred Provision Journal Entry

(I/s approach)

Temporary Difference Activity	559,180
x Tax Rate	35%
+ After-Tax Temporary Diff Activity	12,100
= Deferred Provision	207,813