October 30, 2016 admin

Accrued Taxes—Franchise & Other

Liabilities and Net Worth

ACCRUED TAXES—FRANCHISE & OTHER LIABILITY ACCOUNT
2402

ACCOUNT EXPLANATION
Franchise taxes and any other taxes assessed on the dealership, such as gross receipts tax, intangibles tax, etc., not provided for elsewhere in this Manual.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly accrual of franchise tax SE
    Taxes—Excluding Real Estate & Income 8540
      Accrued Taxes—Franchise & Other 2402
             
  Payment of franchise tax CD
    Accrued Taxes—Franchise & Other 2402
      Cash in Bank—General 1001
COMMENTS
  • The estimated liability for these taxes should be adjusted when the actual amount has been ascertained. The remittance of these taxes should be in conformity with applicable government regulations.