Question

At the end of the year, Super Shipping has calculated its federal income tax amount for the year to be $10,000. Super Shipping has already made federal income tax payments in the amount of $4,000. How is the adjusting entry for Federal Income Tax Expense recorded on a multicolumn trial balance worksheet

Answer 1

Answer and Explanation:

The journal entry to record the federal income tax expense is shown below:

Federal income tax expense ($10,000 - $4,000) $6,000

To Federal income tax payable $6,000

(being the federal income tax expense is recorded)

Here the federal income tax expense is debited as it increased the expense and credited the federal income tax payable as it increased the liabilities