Clausius Ltd. made four quarterly payments of $3,200 each to the CRA during 2011 as instalment payments

Question:

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.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...