=+EX 3-16 Effect of omitting adjusting entry objs. 2, 3 Northwest Financial Services was organized on April
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=+EX 3-16 Effect of omitting adjusting entry objs. 2, 3 Northwest Financial Services was organized on April 1 of the current year. On April 2, Northwest prepaid $4,500 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. Northwest is also required to pay in January an annual tax (on property) for the previous calendar year. The estimated amount of the property tax for the current year (April 1 to December 31) is $21,375.
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