Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company paid $ 1 0 , 0 0 0 cash for income taxes. Of this amount, $ 4 , 0 0 0 was for

A company paid $10,000 cash for income taxes. Of this amount, $4,000 was for income taxes for last year and $6,000 was for income taxes for this year. At the end of last year, an appropriate adjusting entry was made to record the $4,000 in income taxes outstanding as of the end of the year. Which ONE of the following would be included in the journal entry necessary to record this cash payment of income taxes this year?
DEBIT to Income Taxes Payable for $4,000
CREDIT to Income Taxes Payable for $4,000
DEBIT to Cash for $10,000
CREDIT to Income Tax Expense for $6,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions