Q28. Income taxes payable
On December 31, 20×1, Entity A estimated the income taxes expense for 20×1 as $260,000.
Prepare a journal entry to record this transaction.
A28. Income taxes payable is recorded on the credit side.
| Debit | Credit | |
| Income taxes expense | 260,000 | |
| Income taxes payable | 260,000 |
[Note]
1. Increase in income taxes expense (expense): debit
2. Increase in income taxes payable (liability): credit
[Exercise]
On December 31, 20×1, Entity B estimated the income taxes expense for 20×1 as $510,000.
| Debit | Credit | |
| Income taxes expense | 510,000 | |
| Income taxes payable | 510,000 |
[Note]
1. Increase in income taxes expense (expense): debit
2. Increase in income taxes payable (liability): credit