Question

Selected transactions of Divad Corporation during 2016 follow.

DATE			TRANSACTIONS
Mar.	15		Filed the federal income tax return for 2015. The total tax for the year was $127,550. During 2015, quarterly deposits of estimated tax totaling $122,000 had been made. The additional tax of $5,550 was paid with the return. On December 31, 2015, the accountant had estimated the total tax for 2015 to be $125,800 and had recorded a liability of $3,800 for federal income tax payable.
Apr.	15		Paid first quarterly installment of $34,000 on 2016 estimated federal income tax.
May	3		Declared dividend of $0.30 per share on the 42,000 shares of common stock outstanding. The dividend is payable on June 2 to stockholders of record as of May 20, 2016.
June	2		Paid dividend declared on May 3.
	15		Paid second quarterly installment of $34,000 on 2016 estimated federal income tax.
Sept.	15		Paid third quarterly installment of $34,000 on 2016 estimated federal income tax.
Nov.	2		Declared dividend of $0.30 per share on 42,000 shares of common stock outstanding. The dividend is payable on December 2 to holders of record on November 20.
Dec.	2		Paid dividend declared on November 2.
	15		Paid fourth quarterly installment of $34,000 on 2016 estimated income tax.
	31		Total income tax for 2016 was $136,960. Record as an adjustment the difference between this amount and the total quarterly deposits.

  

Record the above transactions in general journal

Answer 1

Date	Journals	Dr/Cr	Debit	Credit
Mar-15	Provision for Income Tax/Income Tax Payable	Dr	3800
	Income Tax A/c	Dr	1750
	To Bank	Cr		5550
	(Since Provision is already made for 3800 on December Hence balance amount booked as Expense)
Apr-15	Advance Tax A/c	Dr	34000
	To Bank	Cr		34000
May-03	Profit and Loss A/c or Dividend A/c	Dr	12600
	To Dividend Payable	Cr		12600
Jun-02	Dividend Payable	Dr	12600
	To Bank	Cr		12600
Jun-15	Advance Tax A/c	Dr	34000
	To Bank	Cr		34000
Sep-15	Advance Tax A/c	Dr	34000
	To Bank	Cr		34000
Nov-02	Profit and Loss A/c or Dividend A/c	Dr	12600
	To Dividend Payable	Cr		12600
Dec-02	Dividend Payable	Dr	12600
	To Bank	Cr		12600
Dec-15	Advance Tax A/c	Dr	34000
	To Bank	Cr		34000
Dec-31	Income Tax A/c	Dr	136960
	To Provision for Income Tax	Cr		136960
	Provision for Income Tax	Dr	136960
	To Advance Tax			136000
	To Income Tax Payable			960