Prepare the journal entry to record income taxes

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1.In 2013, DFS Medical Supply collected rent revenue for 2014 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recognized as income in the period earned. The unearned portion of the rent collected in 2013 amounted to $300,000 at December 31, 2013. DFS had no temporary differences at the beginning of the year.

Required:
Assuming an income tax rate of 40% and 2013 income tax payable of $950,000, prepare the journal entry to record income taxes for 2013.

Reference no: EM13880321

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