The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.
A) Record payment of taxes.
B) Record taxes expense incurred and to be paid in next period.
C) Record taxes paid in advance.
D) Record tax bill received from government.

Question

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry. 
A) Record payment of taxes. 
B) Record taxes expense incurred and to be paid in next period. 
C) Record taxes paid in advance. 
D) Record tax bill received from government.

Quizplus · Accepted Answer

The entry is recording taxes expense incurred and to be paid in the next period. This means that the company has incurred taxes expense in the current period that will be paid in the next period.

The Following Adjusting Journal Entry Found in the Journal Is