I have a small corporation in Alberta, and I'm using Quick Book to do my book keeping and taxtron software to file my income tax.
Our fiscal year ends on March 31 every year, and this is year 3 for me in business, I file the corporate tax every year in September.
I have 2 questions:
1) Recoding the Federal and Provincial tax paid.
How I should record the taxes paid in QB?
What I did the following:
I created a chart account: Canada Revenue Federal Tax – Type: Expenses
So I did the following JE for 2015 year in September 2016
Dr: Canada Revenue Federal Tax
The amount showed in my Income statement for the year 2016 tax, and the Tax account said, this should not show in the Income Statement, as this already been calculated for that year in TaxTron, and I need to recorded correctly for that year not after April 1, 2016. Is that true?
I read this post: corporate-tax-question-does-payment-goe ... n-1135648/
And they advised as:
Dr. Income tax expense
Cr. Tax payable.
But in my case I have paid the amount so there is no paypal as its already paid.?
How I should record this amount, under what account? And for what year.
2) In QB all my remaining amounts are in the Bank account, I have ZERO balance in my Retained Earning. Do I need to move what money left in the corporate to this account after filing the tax?
Thank you again,