Dan plc is preparing its financial statements for the year ended 31 December 20X7. Its initial trial balances show the following balance: Income tax payable on 1 January 20X7 Income tax paid £ لیا 337,850 لیا 351,083 The income tax paid during the year ended 31 December 20X7 completely settles the 20X6 liability. The total estimated tax due on the profits for the year ended 31 December 20X7 is 402,917 Dan plc should record the following journal at 31 December 20X7 A. Debit Income tax expense £389,684; Credit Income tax payable £51,834, Credit Income tax paid £337,050 B. Debit Income tax expense £389,684, Credit Income tax payable £65,067, Credit Income tax paid £324,617 C. Debit Income tax expense £402,917, Credit Income tax payable £65,067, Credit Income tax paid £337,850 D. Debit Income tax expense £402,917, Credit Income tax payable £51,834; Credit Income tax paid £351,083
Dan plc is preparing its financial statements for the year ended 31 December 20X7. Its initial trial balances show the following balance: Income tax payable on 1 January 20X7 Income tax paid £ لیا 337,850 لیا 351,083 The income tax paid during the year ended 31 December 20X7 completely settles the 20X6 liability. The total estimated tax due on the profits for the year ended 31 December 20X7 is 402,917 Dan plc should record the following journal at 31 December 20X7 A. Debit Income tax expense £389,684; Credit Income tax payable £51,834, Credit Income tax paid £337,050 B. Debit Income tax expense £389,684, Credit Income tax payable £65,067, Credit Income tax paid £324,617 C. Debit Income tax expense £402,917, Credit Income tax payable £65,067, Credit Income tax paid £337,850 D. Debit Income tax expense £402,917, Credit Income tax payable £51,834; Credit Income tax paid £351,083
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 51P
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Transcribed Image Text:Dan plc is preparing its financial statements for the year ended 31 December 20X7. Its initial trial
balances show the following balance:
Income tax payable on 1 January 20X7
Income tax paid
M
337,850
£
351,083
The income tax paid during the year ended 31 December 20X7 completely settles the 20X6 liability.
The total estimated tax due on the profits for the year ended 31 December 20X7 is 402,917 Dan plc
should record the following journal at 31 December 20X7
A. Debit Income tax expense £389,684; Credit Income tax payable £51,834, Credit Income tax paid
£337,050
B. Debit Income tax expense £389,684, Credit Income tax payable £65,067, Credit Income tax paid
£324,617
C. Debit Income tax expense £402,917, Credit Income tax payable £65,067, Credit Income tax paid
£337,850
D. Debit Income tax expense £402,917, Credit Income tax payable £51,834; Credit Income tax paid
£351,083
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