Summary entries for cash paid for income taxes
Response to the following problem:
For each of the five independent situations below, prepare a single journal entry that summarizes the recording and payment of income taxes in order to determine the amount of cash paid for income taxes and explain the change (if any) in each of the accounts shown. All dollars are in millions.
|
Situation
|
Income Tax
Expense
|
Income Tax
Payable
Increase (Decrease)
|
Deferred Tax
Liability
Increase (Decrease)
|
Cash Paid
for Taxes
|
|
1
|
10
|
0
|
0
|
?
|
|
2
|
10
|
3
|
0
|
?
|
|
3
|
10
|
0
|
(2)
|
?
|
|
4
|
10
|
3
|
2
|
?
|
|
5
|
10
|
(3)
|
(2)
|
?
|