Journalize the entries to record the following selected transactions of Lone Star Leather Co.:
|
Apr. 15. |
Paid the first installment of the estimated income tax for the current fiscal year |
|
ending December 31, $90,000. No entry had been made to record the liability. |
|
|
June 15. |
Paid the second installment of $90,000. |
|
Sept. 15. |
Paid the third installment of $90,000. |
|
Dec. 31. |
Recorded the estimated income tax liability for the year just ended and the |
|
deferred income tax liability, based on the transactions above and the following |
|
|
data: |
|
Income tax rate |
40% |
|
Income before income tax |
$950,000 |
|
Taxable income according to tax return |
$800,000 |
|
Jan. 15. |
Paid the fourth installment of $50,000. |