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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

PAYROLL ACCT.,2019 ED.(LL)-TEXT
PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN:9781337619783
Author:BIEG
Publisher:BIEG
Chapter6: Analysing And Journalizing Payroll
Section: Chapter Questions
Problem 10PA
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Music Media Ltd. prepares statements quarterly. Port Ai 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 < 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 on December 31 to record the accrual (assume 11 months have been accrued to date in 2020). Record the payment on January 1, 2021. View transaction list Journal entry worksheet 1 2 2 Record the entry to adjust income tax expense to actual income tax. Date December 31, 3036 Note: Enter debits before credits. General Journal Debit Credit >
Transcribed Image Text:Music Media Ltd. prepares statements quarterly. Port Ai 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 < 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 on December 31 to record the accrual (assume 11 months have been accrued to date in 2020). Record the payment on January 1, 2021. View transaction list Journal entry worksheet 1 2 2 Record the entry to adjust income tax expense to actual income tax. Date December 31, 3036 Note: Enter debits before credits. General Journal Debit Credit >
Part B: Required: 3. Complete the following table assuming Music estimates its tax liability for the year 2020 to be $652,500. (Do not round intermediate calculations.) Income before tax Estimated income tax expense Profit Jan.- Mar. Apr-June July-Sept. Oct-Dec. $ 286,000 $ 416,000 $436.000 $ 516,000 4. Assuming that actual tax for the year 2020 was determined to be $712,000, 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. D View transaction list 5. Calculate Music's actual profit for the year 2020. Actual profit
Transcribed Image Text:Part B: Required: 3. Complete the following table assuming Music estimates its tax liability for the year 2020 to be $652,500. (Do not round intermediate calculations.) Income before tax Estimated income tax expense Profit Jan.- Mar. Apr-June July-Sept. Oct-Dec. $ 286,000 $ 416,000 $436.000 $ 516,000 4. Assuming that actual tax for the year 2020 was determined to be $712,000, 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. D View transaction list 5. Calculate Music's actual profit for the year 2020. Actual profit
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