Adjusting Entries for Prepaid and Accrued Taxes A-Z Construction Company was organized on May 1 of the current year. On May 2, A-Z Construction prepaid $6,240 to the city for taxes (license fees) debited the prepaid taxes account. A-Z Construction is also required to pay in January an annual tax (on property) for the previous calendar year. The property tax for the current year (May 1 to December 31 ) is $25,930. a. Joumalize the two adjusting entries required to bring the accounts affected by the two taxes up to date as of December 31 , the end of the current require an entry, leave it blank. b. What is the amount of tax expense for the current year? $