Accounting Question?
Accounting Question?
These are ALL accounts for a company: Cash, Inventory, Accounts Receivable, Accounts Payable, Income Tax Payable, Loans, Capital Stock and Retained Earnings....
How would you create a journal entry with dr = cr with this transaction:
The company paid $ 5000 for 2004 and provisional 2005 income taxes. The Income tax on the 2006 net income is estimated to be $2000. (Income tax payable at Dec. 31 2004 = $1500)
"2006 net income" should be "2005 net income"
Answers:
Sheepish TinTin: Journal Entry 2004:
Dr. Deferred Tax Asset - $5000
Cr. Cash - $5000
Dr. Income Tax payable - $1500
Cr. Deferred Tax Asset - $1500
2004 Balance Sheet amount - $3500
Journal Entry 2005:
Entry in General Journal:
The company approves a provision for taxes in the amount of ________.
2005 Balance Sheet amount - $3500
Journal Entry 2006:
Income Tax Expense-$2000
Accrued Income Tax Payable - $2000
When paid:
Accrued Income Tax Payable - $2000
Deferred Income Tax - $2000
2006 Balance Sheet amount - $1500
2006-09-14 22:44:24
2006-09-14 22:44:24
Chosen Answer
High Jack: Please contact your Auditor
2006-09-17 08:01:46
High Jack: Please contact your Auditor
2006-09-17 08:01:46