On December 31, 2005 the tax accountants of mega sales inform the accountants that 75% of the current year tax expense should be considered payable on march 15, 2006, 15% of the tax liability will be payable on march 15, 2007 and the balance will be payable on march 15, 2008
On December 31, 2006 the tax accountants inform the accountants that 80% of the current years tax expense should be considered payable on march 15, 2007 and the balance will be payable march 15, 2008
Mega Sales journalize any taxes payable within the next calender year to income tax payable and taxes due after the next calender year to the deferred income tax payable account
The accounts determine that taxable income for the year 2005 $175,000,00 and the total income obligation is 35% For the year 2006 the net income is 190,000,00 and the total income tax obligation is 35%
Journalize the recognition of the tax obligations at December 31, 2005
Journalize the payment of the 2005 tax obligations on march 15, 2006
Journalize the recognition of the tax obligation at December 31, 2006
Journalize the payment required march 15, 2007 for the 2005 and 2006 tax obligations
Please Help.
On December 31, 2006 the tax accountants inform the accountants that 80% of the current years tax expense should be considered payable on march 15, 2007 and the balance will be payable march 15, 2008
Mega Sales journalize any taxes payable within the next calender year to income tax payable and taxes due after the next calender year to the deferred income tax payable account
The accounts determine that taxable income for the year 2005 $175,000,00 and the total income obligation is 35% For the year 2006 the net income is 190,000,00 and the total income tax obligation is 35%
Journalize the recognition of the tax obligations at December 31, 2005
Journalize the payment of the 2005 tax obligations on march 15, 2006
Journalize the recognition of the tax obligation at December 31, 2006
Journalize the payment required march 15, 2007 for the 2005 and 2006 tax obligations
Please Help.