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its account question Music Media Ltd. prepares statements quarterly. Part A: Required: 1. Based on 2022 results, Music's estimated tax liability for 2023 is $291,960.
its account question
Music Media Ltd. prepares statements quarterly. Part A: Required: 1. Based on 2022 results, Music's estimated tax liability for 2023 is $291,960. Music will accrue 1/14 of this amount at the end of each month (assume the instaliments are paid the next day). Prepare the entry on January 31,2023 , to accrue the tax liability and on February 1 to record the payment. Journal entry worksheet Record the entry to accrue estimated income tax for January. Note: Enter debins before credits. 2. At year-end, December 31 , the actual income tax for 2023 was determined to be $297,420. Prepare the adjusting entry on December 31 to record the accrual (assume 11 months have been accrued to date in 2023). Record the payment on January 1, 2024. Journal entry worksheet Record the entry to adjust income tax expense to actual income tax. Note: Enter debits before credits: Required: 3. Complete the following table assuming Music estimates its tax liability for the year 2023 to be $646,500. (Do not round intermediate calculations.) 4. Assuming that actual tax for the year 2023 was determined to be $672,000, prepare the appropriate adjusting entry at year-end bring the balance in the Income Tax Expense account to the correct balance, assuming no accrual has yet been recorded for the quarter. Journal entry worksheet 1 Record the entry to adjust income tax expense to actual income tax. Record the entry to adjust income tax expense to actual income tax. Note: Enter debits before credits. 5. Calculate Music's actual profit for the year 2023. Actual profit Step by Step Solution
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