Prepare journal entries to record these transactions and events. 1. During 2022 Leavitt County collected personal income taxes in the amount of $3,200,000 as a result of withholdings by employers and payments of estimated taxes by taxpayers for 2022. 2. At year-end Leavitt County's Finance Director estimated that, by April 15, 2023 (when taxpayers are required to file their final tax returns for 2022), taxpayers will make payments of $175,000 with their tax returns and request refunds of $320,000 3. The Finance Director also estimated that late filers will pay $45,000 of taxes applicable to 2022 when they ultimately file their tax returns. Leavitt County's written policy regarding personal income taxes is to consider only payments received with final returns by April 15 as "available." Account Debit Credit 1. Cash 3,200,000 Revenues - income taxes 3,200,000 To record taxes collected in 2022. 2. Deferred inflow of resources - income taxes 175,000 Income taxes receivable 145,000 Cash 320,000 x To accrue personal income taxes receivable and refunds payable, applicable to 2022. 3. Income taxes receivable 45,000 Deferred inflow of resources - income taxes 45,000 To accrue personal income taxes receivable and deferred revenue. > >
Prepare journal entries to record these transactions and events. 1. During 2022 Leavitt County collected personal income taxes in the amount of $3,200,000 as a result of withholdings by employers and payments of estimated taxes by taxpayers for 2022. 2. At year-end Leavitt County's Finance Director estimated that, by April 15, 2023 (when taxpayers are required to file their final tax returns for 2022), taxpayers will make payments of $175,000 with their tax returns and request refunds of $320,000 3. The Finance Director also estimated that late filers will pay $45,000 of taxes applicable to 2022 when they ultimately file their tax returns. Leavitt County's written policy regarding personal income taxes is to consider only payments received with final returns by April 15 as "available." Account Debit Credit 1. Cash 3,200,000 Revenues - income taxes 3,200,000 To record taxes collected in 2022. 2. Deferred inflow of resources - income taxes 175,000 Income taxes receivable 145,000 Cash 320,000 x To accrue personal income taxes receivable and refunds payable, applicable to 2022. 3. Income taxes receivable 45,000 Deferred inflow of resources - income taxes 45,000 To accrue personal income taxes receivable and deferred revenue. > >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Accounting for personal income taxes
Prepare journal entries to record these transactions and events.
1. During 2022 Leavitt County collected personal income taxes in the amount of $3,200,000 as a result of withholdings by
employers and payments of estimated taxes by taxpayers for 2022.
2. At year-end Leavitt County's Finance Director estimated that, by April 15, 2023 (when taxpayers are required to file their
final tax returns for 2022), taxpayers will make payments of $175,000 with their tax returns and request refunds of $320,000.
3. The Finance Director also estimated that late filers will pay $45,000 of taxes applicable to 2022 when they ultimately file
their tax returns.
Leavitt County's written policy regarding personal income taxes is to consider only payments received with final returns by
April 15 as "available."
Account
Debit
Credit
1. Cash
3,200,000
Revenues - income taxes
3,200,000
To record taxes collected in 2022.
2. Deferred inflow of resources - income taxes
175,000
Income taxes receivable
145,000
Cash
320,000 x
To accrue personal income taxes receivable and
refunds payable, applicable to 2022.
3. Income taxes receivable
45,000
Deferred inflow of resources - income taxes
45,000
To accrue personal income taxes receivable
and deferred revenue.
>
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