Paying income tax owed by a corporation

Transaction

At last year’s year end a corporation recorded $7,600.00 of income tax still owed. Today it pays that amount to the IRS from its bank account.

Assumptions: The company is a corporation, so this is its own corporate income tax. (A sole trader’s personal income tax would be a private withdrawal, not a business expense or liability.)

Accounts

Tap an account, then choose Debit or Credit and type the amount. × removes a line.

Debit

No lines yet. Choose an account above.

Credit

No lines yet. Choose an account above.

Debits $0.00Credits $0.00