In 2020, TouchBase recorded the payments of $4,730 it made during 2020 as Income Tax Expense. So
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In 2020, TouchBase recorded the payments of $4,730 it made during 2020 as Income Tax Expense. So far during 2021, TouchBase has made quarterly estimated-tax pre- payments of $7,500, recording them directly to the Income Tax Expense account. TouchBase uses a 22% effective income tax rate to calculate its Income Tax Expense from its Income Before Tax. The final quarterly tax payment for 2021 taxes will not be made until April 15, 2022.
| Journal Entry: j) Income Tax | Income Tax | Note: insert rows within the print area as needed | ||||||||
| 12/31/21 | Example debit | 99,999 | ||||||||
| Example credit | 99,999 | |||||||||
| Briefly describe the issue and explain how your journal entry/(ies) fix the problem: | ||||||||||
| Show detailed, clearly-labeled calculations for any values: | ||||||||||
Expert Answer:
Adjustment for Prepaid Taxes and Estimated Tax Expense Date Account Debit Credit Dec 31 2021 Prepaid ... View the full answer
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