Many businesses are required to make some adjustments to their accounts at the end of the year in order to follow GAAP rules. One such adjustment for corporations is adjusting for income taxes compared to their tax estimates. In this video you will learn why estimates are made, how to calculate the adjustment and how to make the adjusting journal entry.
This video was created in relation to the Utah State CTE standards for the Accounting II High School course. Specifically, this video prepares students to complete Strand 6, Standard 1: Identify accounts to be adjusted and calculate adjustments.
