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A company makes adjusting entries monthly. Its unadjusted trial balance on December 31 reports Income Taxes Expense of $100,000 and Income Taxes Payable of $20,000. The company's Tax Department estimates Income Taxes Expense for the entire year as $130,000. After making the necessary adjusting entry, the company's adjusted trial balance will report a

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The company's adjusted trial balance after making the necessary adjusting entry will report a :

Debit balance in Income Taxes Expense of $130,000.

Credit balance in Income Taxes Payable of $50,000.

What is an adjusted trial balance?

A trial balance is the arithmetical accuracy of the ledger. An adjusted trial balance is a listing of the ending balances in all accounts after adjusting entries have been prepared.

The adjusting entry requires a $30,000 debit to Income Taxes Expense, which will increase its balance to $130,000 in the adjusted trial balance.

It also requires a $30,000 credit to Income Taxes Payable, which will increase its balance to $50,000 in the adjusted trial balance.

Learn more about adjusted trial balance here : https://brainly.com/question/15003832

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