At 30 June 2019, Barry Ltd Estimates It Will Be

Multiple Choice

At 30 June 2019, Barry Ltd estimates it will be required to pay income tax expenses of $62 000 during the following financial year. The correct journal entry to provide for this income tax estimate at 30 June 2019 is:

A) DR Income tax expense $62 000; CR Bank $62 000
B) DR Income tax expense $62 000; CR Retained earnings $62 000
C) DR Income tax expense $62 000; CR Current tax liability $62 000
D) DR Current tax liability $62 000; CR Income tax expense $62 000