JE to Book Past Payroll Tax Payments

lucysmom · #1 Jan 18, 2008, 04:56 AM

I need to know the journal entry to book a 941 Payroll tax payment for previous years taxes after an audit.

There is no outstanding balance in my payroll tax liabilities accounts - because the accountant from last year must have made an adjusting entry.

I increased the Line-of-Credit in 2007 to borrow money to pay taxes for 2005 and 2006.

My company is an LLC (cash basis).

Thanks
Sue

delite · Jan 18, 2008, 09:00 PM

IF AN ADJSUTMENT WAS MADE, JOURNALIZE THE EXPENSE AND CONTRA ENTRY TO REFLECT LIABILITY- (SHOULD DETAIL EMPLOYEES NAME AND SOC.SEC#.wHEN MAKING PAYMENT, DEBIT LIABILITY AND CREDIT CASH.



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