contestada

the federal government and many state governments require corporations to pay income tax on their net income. assume that abc united is a corporation and owes $1,200 for federal income tax incurred which has been recorded as a liability. the journal entry to pay the $1,200 owed would be:

Respuesta :

The journal entry to pay the $1,200 owed would be with respect to the Tax Payable and Cash.

What is a journal entry?

Journal entry is a form of bookkeeping whereby the amount of a transaction is debited from one institution and credited from another, recognizing both participants of something like the action and ensuring that the aggregate debits, as well as credits, are equal.

The journal entry with respect to the federal government payment of the tax and the payment of the tax.

Debit with the account of Income Tax Payable and the amount will be  $1,200

Credit with the account of Cash and the amount will be $1,200.

Learn more about  journal entry, here:

https://brainly.com/question/20421012

#SPJ1

Otras preguntas