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We are incorporated and just paid my first year corporate income tax. I wrote a cheque from my bank account and am wondering where I should enter the balance that I paid. I also made one installment for future taxes on this years income and was wondering where that should be entered. Thanks.
Hi Jean!
Anytime you deal with corporate income tax, you will be posting to an account called Corporate Income Tax Payable.
In the transaction entry screen, you will do a withdrawal, and fill in the top portion of the screen. Once you get to the detail, change your type to D+. Look at your account list, and find the account called Corporate Taxes Payable. Whether you are paying your prior year's income tax liability, or making an installment payment, you will post to the same account.
You can also refer to the following article, which gives a couple of examples using the Corporate Taxes Payable account: