Ming Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 30% of the current month’s net income. The in¬ come taxes are paid in the first month of each quarter for the amount accrued for the prior quarter. The following information is available for the fourth quarter of year 2005. When tax computations are completed on January 20, 2006, Ming determines that the quarter’s Income Taxes Payable account balance should be $29,100 on December 31, 2005 (its unadjusted balance is $23,640).

1. Determine the amount of the accounting adjustment (dated as of December 31, 2005) to produce the proper ending balance in the Income Taxes Payable account.
2. Prepare journal entries to record

(a) the December 31, 2005, adjustment to the Income Taxes Payable account and

(b) the January 20, 2006, payment of the fourth-quarter taxes.

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October 2005 net income $27,900 November 2005 net income 18,200 December 2005 net income... 32,700