McColl County's CFO, Ashlynn Morton, analyzes the following income tax revenue transactions. Prepare the general fund journal entry for each, and answer the question that follows:

1. During the fiscal year that ended December 31, 2020, the County collected personal income taxes of $4,500,000. These amounts are collected from employers who withheld income tax from employee payroll and from individuals making estimated payments.

2. At December 31, 2020, Morton determines that by the tax deadline of April 15, 2021, taxpayers will request refunds of $380,000 and taxpayers will make payments with their tax returns of $220,000.

3. Assume that, when income tax receipts were collected, as described in #1, the information in #2 was known. What would have been the journal entry made to record receipts?

4. What other considerations should Ashlynn make regarding income taxes for the tax year 2020?

Answer rating: 100% (QA)

1 Dr Cash 4500000 Cr Income Tax Receivable 4500000 2 Dr Income Tax Receivable 380000 Cr Cash 380000 ... View the full answer