Gosling Company determines its annual income tax expense to be $459,000. Of that amount, $300,000 has already been paid during the year (on a quarterly basis) and charged to the Income Taxes Expense account. The company has determined that, of the amount that has not yet been paid or recorded, $75,000 will be deferred into future years under certain favorable income tax provisions available to the company. Prepare the end-of-year general journal entry to recognize income taxes accrued.
Answer to relevant QuestionsHow do dividends affect owners’ equity? Are they treated as a business expense? Explain.The following transactions were carried out during the month of May by M. Palmer and Company, a firm of design architects. For each of the five transactions, you are to state whether the transaction represented revenue to ...Satka Fishing Expeditions, Inc., recorded the following transactions in July:1. Provided an ocean fishing expedition for a credit customer; payment is due August 10. 2. Paid Marine Service Center for repairs to boats ...Zeta Co. has outstanding 100,000 shares of $100 par value cumulative preferred stock which has a dividend rate of 6 percent. The company has not declared any cash dividends on the preferred stock for the last three years. ...Gannon, Inc., had 100,000 shares of common stock outstanding. During the current year, the company distributed a 10 percent stock dividend and subsequently paid a $0.50 per share cash dividend. Calculate the number of shares ...
Post your question