Al-Isra Industrial Company is subject to an income tax rate equal to 10% of its taxable income.
Question:
Al-Isra Industrial Company is subject to an income tax rate equal to 10% of its taxable income. During the year 2020, the company paid two payments to the Income Tax Department on 6/30 and 31/12, each of 24,000 dinars, on the account of the 2020 income tax. At the end of the year 2020, the amount of income tax expense for the year 2020 was estimated at 56,000 dinars
Required:
1. Proving the journal entries necessary for the above operations in the books of Al-Isra Industrial Company.
2. What is the amount of income tax expense that will appear in the company's income statement for the year 2020.
3. A statement of how the impact of previous operations is shown in the company's budget on 31/12/2020.
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M