Final answer:
The question requires a computation of a journal entry for Riverbed Company, which includes determining income taxes payable, deferred income taxes, and income tax expense for 2019. A tax rate is needed to calculate these figures based on the provided temporary differences. The journal entry affects the income tax expense, income taxes payable, and deferred tax liability accounts.
Step-by-step explanation:
The question asks for the preparation of a journal entry for Riverbed Company to record income taxes payable, deferred income taxes, and income tax expense for 2019 assuming that there were no deferred taxes at the end of 2018. To properly answer this question, it's necessary to calculate the future taxable amounts based on the cumulative temporary differences and apply the appropriate tax rate.
However, without the tax rate, we cannot compute the exact amounts for deferred tax liabilities or assets. Generally speaking, income taxes payable are calculated based on the taxable income for the fiscal year at the current tax rate, deferred taxes correspond to future tax consequences of the company's cumulative temporary differences (which, in this case, are expected to result in future taxable amounts), and income tax expense represents the sum of income taxes payable and the change in deferred tax assets or liabilities.
For example, if the tax rate is 30%, and the company's taxable income for 2019 is $100,000, the income taxes payable would be 30% of $100,000, so $30,000. On the deferred side, you would calculate 30% of the cumulative temporary differences, which will result in future taxable amounts in each future year. Without the actual tax rate, further calculations cannot be carried out. Once all relevant calculations are done, these figures are used to create the journal entry, affecting the income tax expense, income taxes payable, and deferred tax liability accounts.