After posting the entries to record salary expenses and payroll tax expenses, the income taxes payable account of Halpha Company has a $9,000 credit expense resulting from income taxes.

Question

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The income taxes payable account would have a credit balance, not a credit expense, as a result of recording income taxes. This account reflects the amount owed to tax authorities, not an expense.

After Posting the Entries to Record Salary Expenses and Payroll