Gosling Company determines its annual income tax expense to be $459,000. Of that amount,$300,000 has already been paid during the year (on a quarterly basis) and charged to the IncomeTaxes Expense account. The company has determined that, of the amount that has not yet beenpaid or recorded, $75,000 will be deferred into future years under certain favorable income taxprovisions available to the company. Prepare the end-of-year general journal entry to recognizeincome taxes accrued.
Gosling Company determines its annual income tax expense to be $459,000. Of that amount,$300,000 has already been paid during the year (on a quarterly basis) and charged to the IncomeTaxes Expense account. The company has determined that, of the amount that has not yet beenpaid or recorded, $75,000 will be deferred into future years under certain favorable income taxprovisions available to the company. Prepare the end-of-year general journal entry to recognizeincome taxes accrued.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gosling Company determines its annual income tax expense to be $459,000. Of that amount,
$300,000 has already been paid during the year (on a quarterly basis) and charged to the Income
Taxes Expense account. The company has determined that, of the amount that has not yet been
paid or recorded, $75,000 will be deferred into future years under certain favorable income tax
provisions available to the company. Prepare the end-of-year general
income taxes accrued.
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