How to apply previous years Tax Payment

[MannyM]

Hello,

I just paid the IRS the taxes for our PREVIOUS fiscal year ended April 30, 2002. What are the steps in entering this transaction (since we were not using Peachtree in our FY2002) so that:

1) our Cash in Bank account is debited properly ; and
2) the taxes paid do not show up in the current year's books, since these are taxes for our PREVIOUS fiscal year ; and
3) the Retained Earnings of the PREVIOUS fiscal year get adjusted accordingly to reflect the amount paid for taxes.

Any help will truly be appreciated.

Manny

[dringstrom]

Who prepared your tax return? If you used an outside preparer, they can tell you what journal entry to make. Posting entries like this requires specific knowledge of your company and chart of accounts to make sure it's done correctly.