Accrued Income Taxes}

Nolan Inc. had taxable income of \(\$ 400,000\) in 2017 . Its effective tax rate is \(35 \%\). Nolan pays its 2017 income taxes on April 30, 2018.

\section*{Required:}

1. Given this information, determine the adjusting journal entry that Nolan must make on December 31, 2017.

2. Prepare the journal entry to record the tax payment.

\section*{Brief Exercise