Identify the Journal Entry Required to Correctly Record the Following

question 6

Multiple Choice

Identify the journal entry required to correctly record the following transaction. Income tax for the year estimated.

• A) Dr Income tax expense
• Cr Retained profits
• B) Dr Taxes payable
• Cr Income tax expense
• C) Dr Income tax expense
• Cr Taxes payable
• D) Dr Income tax expense
• Cr Cash at bank

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Definitions:

Methamphetamines

A powerful, highly addictive stimulant that affects the central nervous system, known for its ability to increase alertness, concentration, and energy.

Amphetamines

A class of stimulant drugs that increase activity within the brain and nervous system, often used to treat ADHD and narcolepsy.

Bodybuilders

Individuals who engage in intensive physical training and dieting to develop and maintain a muscular and defined physique.

3,4-methylenedioxymethamphetamine (MDMA)

A psychoactive drug primarily known for its euphoric and empathogenic effects, commonly associated with recreational use.