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:

Judicial Interpretation

The process by which courts interpret and apply legislation, legal principles, and constitutional provisions in the context of legal cases.

Nonconforming Goods

Goods that are delivered under a sales contract that fail to meet the specifications, quantity, or quality stipulated in the contract.

Damages

Monetary compensation awarded to a person who has suffered loss or harm due to the unlawful act or negligence of another.

Buyer

An individual or entity that purchases goods or services from another.