Reference no: EM132759311

Problem 1: 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:

Select one:

a. DR Income tax expense $62 000; CR Bank $62 000

b. DR Current tax liability $62 000; CR Income tax expense $62 000

c. DR Income tax expense $62 000; CR Retained earnings $62 000

d. DR Income tax expense $62 000; CR Current tax liability $62 000

Problem 2: The rules for governing the internal affairs of a company that have been built into the Corporations Law are known as:

Select one:

a. replaceable rules.

b. the prospectus.

c. the memorandum of association.

d. the constitution.