Question: At 30 June 2023, Barry Ltd estimates it will be required to pay income tax expenses of $62 000 during the following financial year. The
At 30 June 2023, Barry Ltd estimates it will be required to pay income tax expenses of $62 000 during the following financial year. The correct journal entry to provide for this income tax estimate at 30 June 2023 is: Group of answer choices DR Income tax expense $62 000; CR Bank $62 000
DR Income tax expense $62 000; CR Retained earnings $62 000
DR Income tax expense $62 000; CR Current tax liability $62 000
DR Current tax liability $62 000; CR Income tax expense $62 000
Lotus Company Ltd decided to issue 100 000 ordinary shares for $3.00 each, payable in instalments, 50c on application, $1.50 on allotment and the balance payable at the discretion of the company. Applications were received for 120 000 shares. The shares were allotted by the directors a week after the close of applications and refunds were made for 20 000 shares. Twelve months after the allotment monies had been received the directors made a call for the remaining $1 per share. The correct journal entry to record the amount due to the company for the call instalment is: Group of answer choices
DR Call $100 000; CR Share capital $100 000
DR Call $120 000; CR Share capital $120 000
DR Share capital $100 000; CR Call $100 000
No accounting entry is required
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