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A-Z Construction Company was organized on May 1 of the current year. On May 2,...

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Accounting

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A-Z Construction Company was organized on May 1 of the current year. On May 2, A-Z Construction prepaid $57,600 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. A-Z Construction is also required to pay in January an annual tax (on property) for the previous calendar year The estimated amount of the property tax for the current year (May 1 to December 31) is $27,300 Required: a Journalize the two adjusting entries required to bring the accounts affected by the two taxes up to date as of December 31, the end of the current year. Refer to the Chart of Accounts for exact wording of account Mles b. What is the amount of tax expense for the current year? JOORAL ACCOUNTIG EOUATION EQUITY ASSETS LIABILITES CREDIT DEBIT POST, REF DESCRIPTION DATE Adjusting Entries 57,600.00 Taxes Expense May 1 21 57,600.00 Prepaid Taxes 18,200.00 Dec. 31 Taxes Expense 18,200.00 Cash 6 86/10 K Points Journal Shaded cells have feedback Final Question he two taxes up a. Ac b. What is the amount of tax expense for the current year? $45,500.00 X Hi Points 0/1 Feedback POST. REF Check My Work Both city licenses and property taxes increase the company's 2 tax expense 3

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