Answered step by step
Verified Expert Solution
Question
1 Approved Answer
urgent needed Required: 1. Based on 2022 results, Music's estimated tax liability for 2023 is $312,960. Music will accrue 1/21 of this amount at the
urgent needed
Required: 1. Based on 2022 results, Music's estimated tax liability for 2023 is $312,960. Music will accrue 1/21 of this amount at the end of each month (assume the installments are paid the next day). Prepare the entry on January 31,2023 , to accrue the tax llability and on February 1 to record the payment. 2. At year-end, December 31, the actual income tax for 2023 was determined to be $318.420. 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 . Record the entry to adjust income tax expense to actual income tax. Record the payment of Income Tax on January 1,2024 . Required: 3. Complete the following table assuming Music estimates its tax liability for the year 2023 to be $657,000. (Do not round intermediate calculations.) 4. Assuming that actual tax for the year 2023 was determined to be $742,000, prepare the appropriate adjusting entry at year-end to bring the balance in the Income Tax Expense account to the correct balance, assuming no accrual has yet been recorded for the fourth quarter 5. Calculate Music's actual profit for the year 2023 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