If $100 of income tax expense was accrued in January and $75 of the income tax payable was paid during the month, what was the balance in income tax payable at january 1? (Hint: Prepare the adjusting journal entry for this transaction, post to the income tax expense and income tax payable T accounts, and work backward to determine the opening balance).

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A partial adjusted trial balance follows for Oriole Ltd. at January 31, 2021. The company's fiscal year end is December 31 and it makes adjustments monthly. It has already recorded any required adjusting journal entries for the month of January and the amounts shown below are correct. ORIOLE LTD. Adjusted Trial Balance (partial) January 31, 2021 Debit Credit Supplies $740 Prepaid insurance Equipment 1,110 6,600 Accumulated depreciation-equipment $2,750 Income tax payable 140 Deferred revenue 700 Service revenue 2,070 Depreciation expense 110 Insurance expense 370 Supplies expense 1,040 Income tax expense 100 A partial adjusted trial balance follows for Oriole Ltd. at January 31, 2021. The company's fiscal year end is December 31 and it makes adjustments monthly. It has already recorded any required adjusting journal entries for the month of January and the amounts shown below are correct. ORIOLE LTD. Adjusted Trial Balance (partial) January 31, 2021 Debit Credit Supplies $740 Prepaid insurance Equipment 1,110 6,600 Accumulated depreciation-equipment $2,750 Income tax payable 140 Deferred revenue 700 Service revenue 2,070 Depreciation expense 110 Insurance expense 370 Supplies expense 1,040 Income tax expense 100

Answer rating: 100% (QA)

ANSWER To determine the balance in the income tax payable account at January 1 we need to work bac... View the full answer