Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes areaccrued each month for 28% of the current month's net income. The income taxes are paid in the first month of each quarter for theamount accrued for the prior quarter. The following information is available for the fourth quarter of the year just ended. When taxcomputations are completed on January 20 of the following year, Nishi determines that the quarter's Income Taxes Payable accountbalance should be $29,446 on December 31 of the year just ended (its unadjusted balance is $24,346).October net incomeNovember net income$ 31,00020,15035, 800December net income1. Determine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in the IncomeTaxes Payable account.2. Prepare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the later January 20payment of the fourth-quarter taxes.Complete this question by entering your answers In the tabs below.Required 1Required 2Determine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in theIncome Taxes Payable account. (Round intermediate calculations to the nearest whole dollar amount.)Amount of accounting adjustment

Companies estimates the uncertain amount for the benefits of employees like pension, vacation pay,…

As part of its accounting process, estimated incon ed each month for 28% of the current month's net income. The income taxes are paid in the first month of each qu nt accrued for the prior quarter. The following information is available for the fourth quarter of the year just ended. utations are completed on January 20 of the following year, Nishi determines that the quarter's Income Taxes Pay ce should be $29,446 on December 31 of the year just ended (its unadjusted balance is $24,346). ober net income ember net income ember net income $ 31,000 20, 150 35, 800 ermine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in t Payable account. pare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the la nt of the fourth-quarter taxes. nplete this question by entering your answers In the tabs below.

As part of its accounting process, estimated incon ed each month for 28% of the current month's net income. The income taxes are paid in the first month of each qu nt accrued for the prior quarter. The following information is available for the fourth quarter of the year just ended. utations are completed on January 20 of the following year, Nishi determines that the quarter's Income Taxes Pay ce should be $29,446 on December 31 of the year just ended (its unadjusted balance is $24,346). ober net income ember net income ember net income $ 31,000 20, 150 35, 800 ermine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in t Payable account. pare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the la nt of the fourth-quarter taxes. nplete this question by entering your answers In the tabs below.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 1SEB

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Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 30% 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 infor-mation 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 $28,300 on December 31 of the year just ended (its unadjusted balance is $24,690). October net income . . . . . . . $28,600 November net income . . . . $19,100 December net income . . . . . $34,600 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…
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