I prepared my books for my one person corporation in Quickbooks Desktop. I proceeded to fill in the tax forms. When I finished it shows that I owe
some taxes. When I come back to my books and post this tax as an expense, it changes all the numbers and it changes my P&L and balance sheet. If if
take those numbers again and try to put them in the tax form, this would become a cycle. How do I avoid this. In particular, if I show the tax I owe
as a liability or accounts payable, which account should it be debited against? An expense account, an Asset, Owner's equity, Retained earnings?
Which one? I am confused and need help. Thanks.
