Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 31% of
Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 31% of the current month's net income. The income taxes are paid in the first month of each quarter for the amount accrued for the prior quarter. The following information is available for the fourth quarter of the year just ended. When tax computations are completed on January 20 of the following year, Nishi determines that the quarter's Income Taxes Payable account balance should be $27,747 on December 31 of the year just ended (its unadjusted balance is $22,847). October net income November net income December net income $ 26,000 16,900 30,800 1. Determine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in the Income Taxes Payable account. 2. Prepare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the later January 20 payment of the fourth-quarter taxes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in the Income Taxes Payable account. Note: Round intermediate calculations to the nearest whole dollar amount. Amount of accounting adjustment < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the later Januar payment of the fourth-quarter taxes. Note: Round intermediate calculations to the nearest whole dollar amount. View transaction list Journal entry worksheet 1 2 Record the December 31 adjustment to the Income Taxes Payable account. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Required 2 > >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started