Trailor Homes showed a federal income tax liability of $15,000 on its 1996 balance sheet. At the beginning of 1997, for purposes of estimated tax payments, the company estimated its tax¬ able income to be $250,000 during 1997. Trailor pays a federal income tax rate of 35 percent of taxable income. The company made the following tax payments during 1997. April $36,875 June 21,875 September 21,875 December 21,875 Actual taxable income for the year, determined at the end of 1997, was $280,000. REQUIRED:

a. Prepare the journal entries to record the tax payments during 1997.

b. Provide the journal entry to accrue Trailor’s income tax liability as of December 31,1997.