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Mar 2, 2024 11:31 AM UTC
Question

What accounts to credit & debit for the qtrly estimated paymts for C-Corp (Cash). Should the taxes be deducted from retained earnings to account for them?

Using the Fed Income Tax expense account leaves invalid deductions and nothing on the balance sheet.  Thanks

1 reply

Mar 23, 2024 5:26 AM UTC

Debit income tax expense account and credit cash account, no manual entry to RE is required.