Computations and journal entries for income taxes payable. PepsiCo files its income tax returns on a calendar-year basis and issues financial statements quarterly as of March 31, June 30, and so on. It estimates and pays income taxes at the rate of 35 percent of taxable income. Suppose that the following data are applicable to the company's income tax for Year 1:

a. Prepare schedules showing the following:
(1) For tax returns: estimated taxes for year, cumulative payments due. and payment made on each payment date.
(2) For financial statements: tax expenses for the quarterly reports and annual report.

b. Record the transactions related to Year 1 income taxes in journal entry form.

c. Present the T-accounts for Cash, Prepaid Income Taxes (if necessary). Income Taxes Payable, and Income Tax Expense.(Appendix) 

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Year 1 Mar. 31 April 15 June 15 June 30 Sept 15 Dec. 15 The firm estimates that total taxable income for Year 1 will be about $1,900 million. It prepares the first quarter's financial statements, It makes the first payment on estimated taxes. The firm now estimates that total taxable income for the year will be about $2,010 million. It makes the second payment on estimated taxes. It prepares the second quarter's financial statements. The firm now estimates that total taxable income for the year will be about $1.940 million. It makes the third payment on estimated taxes. The firm now estimates that total taxable income for the year will be about $1,950 million. It makes the fourth payment on estimated taxes.