CP 95

Pauls Roofing Corporation paid monthly corporate income tax

installments of $500 commencing February 15, 2019. The companys

income before income taxes for the year ended December 31, 2019

was $15,000. The corporate income tax rate is 40%. Pauls Roofing paid

the 2019 corporate income taxes owing on January 31, 2020.

CHAPTER NINE / Debt Financing: Current and Noncurrent Liabilities First US Edition

Required:

1. Record the February 15, 2019 payment.

2. Record the 2019 corporate income tax expense.

3. Record the January 31, 2020 payment.

Descriptions and general ledger account numbers are not necessary.

Show calculations where applicable.