Music Media Ltd. prepares statements quarterly.Port AiRequired:1. Based on 2019 results, Music's estimated tax liability for 2020 is $303,960. Music will accrue 1/18 of this amount at the end of eachmonth (assume the installments are paid the next day) Prepare the entry on January 31, 2020, to accrue the tax liability and onFebruary 1 to record the payment.View transaction listJournal entry worksheet1<Record the entry to accrue estimated income tax for January.2. At year-end, December 31, the actual income tax for 2020 was determined to be $309,420. Prepare the adjusting entry onDecember 31 to record the accrual (assume 11 months have been accrued to date in 2020). Record the payment on January 1, 2021.View transaction listJournal entry worksheet122Record the entry to adjust income tax expense to actual income tax.DateDecember 31,3036Note: Enter debits before credits.General JournalDebitCredit> Part B:Required:3. Complete the following table assuming Music estimates its tax liability for the year 2020 to be $652,500. (Do not roundintermediate calculations.)Income before taxEstimated income tax expenseProfitJan.- Mar. Apr-June July-Sept. Oct-Dec.$ 286,000 $ 416,000 $436.000 $ 516,0004. Assuming that actual tax for the year 2020 was determined to be $712,000, prepare the appropriate adjusting entry at year-end tobring the balance in the Income Tax Expense account to the correct balance, assuming no accrual has yet been recorded for the fourthquarter.DView transaction list5. Calculate Music's actual profit for the year 2020.Actual profit

JF termed as Journal entries which are records the daily activities of the business into the…

Music Média Ltd. prepares statements quarterly. Part A: Required: 1. Based on 2019 results, Music's estimated tax liability for 2020 is $303,960. Music will accrue 1/18 of this amount at the end of each month (assume the installments are paid the next day) Prepare the entry on January 31, 2020, to accrue the tax liability and on February 1 to record the payment. View transaction list Journal entry worksheet ( 1

Music Média Ltd. prepares statements quarterly. Part A: Required: 1. Based on 2019 results, Music's estimated tax liability for 2020 is $303,960. Music will accrue 1/18 of this amount at the end of each month (assume the installments are paid the next day) Prepare the entry on January 31, 2020, to accrue the tax liability and on February 1 to record the payment. View transaction list Journal entry worksheet ( 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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