Question: Clausius Ltd made four quarterly payments of 3 200 each to
Clausius Ltd. made four quarterly payments of $3,200 each to the CRA during 2011 as instalment payments on its estimated 2011 tax liability. At year end, Clausius’s controller completed the company’s 2011 tax return, which showed income taxes of $20,000 for its 2011 income. Prepare a summary entry for the quarterly tax instalments and the year-end entry to recognize the 2011 income taxes. Identify any year-end balance sheet amount that is related to income taxes and indicate where it would be reported.
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