0
How should I record in Quickbooks a prepaid estimated tax payment. As a prepaid Asset and then adjust it when you pay the actual tax at the end of the year?
Wiki User
∙ 7y ago
This type of payment is actually a pre-paid liability and not an asset. It will be adjusted out as you file your tax return, when it becomes an expense item.
Wiki User
∙ 7y ago
Wiki User
∙ 9y agoDebit Prepaid tax
Credit Cash / bank
Adjusting entry:
Debit Tax expense
Credit Prepaid Tax
Add your answer:
Earn +20 pts
What is the difference between prepaid insurance and insurance expense?
When payment for insurance is made advance of actual expenses then it is called prepaid insurance which is asset for business until insurance benefit is utilized while insurance expense is actual insurance expense when insurance benefit is taken.
What is outstanding and prepaid expenses?
Making liability provision for the expenses relating to current year but actual payment to be incurred in the next financial year is outstanding expenses. Example of this case may be salary arrears. Making payment during the current financial year but actual expenditure is related to next financial year is prepaid expense. This type of expenditures arises in the case of advance payment of taxes on certain categories.
What the difference between prepaid and accrued expense and accounts payable?
1. Prepaid Expenses:These are those expenses, the payment of which has made by company in advance but the benefit or actual services has not yet received by the company that's why it is current asset of company for example prepaid rent.Accrued Expenses:These are those expenses the benefit of which has already received by company but payment has not yet made example is employees salaries which are accrued on last date of month and paid later.Accounts Payable:When company purchased goods from vendors on credit and payment is due in later time period this transaction creates the accounts payable till the actual payment is made to the vendors.
What is the concept of prepaid expenses in adjusting entries and why it is used in preparing accurate financial documents?
Prepaid expenses are those expenses which are paid already but actual expense is not incurred and when actual expense incurred adjusting entry required to adjust prepaids as in acrual accounting income and expense only recorded when they are actually occured when not when the cash are paid so cash payment is not important to be recognise for transaction occuring.
What are the disadvantages of quickbooks training?
Sometimes it is better to have actual interaction with people so that your questions can be answered in real time and quickly. Quickbooks Training is good, but can take more time to solve problems.
What is the difference between prepaid insurance and insurance expense?
When payment for insurance is made advance of actual expenses then it is called prepaid insurance which is asset for business until insurance benefit is utilized while insurance expense is actual insurance expense when insurance benefit is taken.
What is outstanding and prepaid expenses?
Making liability provision for the expenses relating to current year but actual payment to be incurred in the next financial year is outstanding expenses. Example of this case may be salary arrears. Making payment during the current financial year but actual expenditure is related to next financial year is prepaid expense. This type of expenditures arises in the case of advance payment of taxes on certain categories.
What the difference between prepaid and accrued expense and accounts payable?
1. Prepaid Expenses:These are those expenses, the payment of which has made by company in advance but the benefit or actual services has not yet received by the company that's why it is current asset of company for example prepaid rent.Accrued Expenses:These are those expenses the benefit of which has already received by company but payment has not yet made example is employees salaries which are accrued on last date of month and paid later.Accounts Payable:When company purchased goods from vendors on credit and payment is due in later time period this transaction creates the accounts payable till the actual payment is made to the vendors.
What is the definition of outstanding expenses?
Making liability provision for the expenses relating to current year but actual payment to be incurred in the next financial year is outstanding expenses. Example of this case may be salary arrears.Making payment during the current financial year but actual expenditure is related to next financial year is prepaid expense. This type of expenditures arises in the case of advance payment of taxes on certain categories.
What is prepaid expense and where is it reported in the financial statements?
Prepaid expense is that amount of expense which is paid in advance and expense is not actually incurred and prepaid expense is current assets of business and show under assets side of balances heet.
What is the concept of prepaid expenses in adjusting entries and why it is used in preparing accurate financial documents?
Prepaid expenses are those expenses which are paid already but actual expense is not incurred and when actual expense incurred adjusting entry required to adjust prepaids as in acrual accounting income and expense only recorded when they are actually occured when not when the cash are paid so cash payment is not important to be recognise for transaction occuring.
What are the disadvantages of quickbooks training?
Sometimes it is better to have actual interaction with people so that your questions can be answered in real time and quickly. Quickbooks Training is good, but can take more time to solve problems.
What is the nature of prepaid expense?
Prepaid expenses are of asset in nature because these are payments which have made already but actual expense is not yet incurred so it is shown in current assets under balance sheet until actual expenses incurred.
What is the actual sum and the estimated sum of 3874 1845?
3874 + 1845 = 5719 is the actual sum. I'm not sure where the 'estimated sum' comes into it.
What are the parts of market list?
item actual cost estimated cost unit quantity description
What is the percent for 55280?
actual answer= 293.8 estimated answer= 294.0
What is a comparison of the estimated sum and actual sum of 7 and seven eighths plus 2 and eleven twelfths?
Estimated 8 + 3 = 11 Actual: 10 and 19/24
