Income taxes payable



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

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