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 $5,520 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. A-Z Construction is also required to pay in January an annual tax (on property) for the current calendar year of $27,120. a. Journalize 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 year. License fees Dec, 31 Accounts Receivable Property tax 31 Cash Prepaid Expense b. What is the amour Prepaid Taxes e current year? Taxes Expense Taxes Payable Taxes Receivable Taxes Revenue Unearned Taxes 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 $5,520 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. A-Z Construction is also required to pay in January an annual tax (on property) for the current calendar year of $27,120. a. Journalize 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 year. License fees Dec. 31 Property tax 31 Accounts Receivable Accounts Receivable Cash urrent year? b. What is the amount s Prepaid Taxes Taxes Expense Taxes Receivable Taxes Revenue Unearned Taxes 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 $5,520 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. A-Z Construction is also required to pay in January an annual tax (on property) for the current calendar year of $27,120. a. Journalize 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 year. License fees Dec. 31 Property tax 31 Accounts Receivable Accounts Receivable b. What is the amour e current year? Cash Prepaid Taxes Taxes Payable Taxes Receivable Taxes Revenue Unearned Taxes b. What is the amount of tax expense for the current year? WI 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 $5,520 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. A-Z Construction is also required to pay in January an annual tax (on property) for the current calendar year of $27,120. a. Journalize 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 year. License fees Dec. 31 Accounts Receivable Property tax 31 Cash Prepaid Taxes Taxes Expense b. What is the amour Taxes Payable e current year? Taxes Receivable Taxes Revenue Unearned Taxes
