None Nishi Corporation prepares financial statements for each month-end. As part of its accounting process,estimated income taxes are accrued each month for 32% of the current month's net income. The incometaxes are paid in the first month of each quarter for the amount accrued for the prior quarter. The followinginformation is available for the fourth quarter of the year just ended. When tax computations arecompleted on January 20 of the following year, Nishi determines that the quarter's Income Taxes Payableaccount balance should be $35,716 on December 31 of the year just ended (its unadjusted balance is$31,216).October net incomeNovember net incomeDecember net income$ 35,00022,75039,8001. Determine the amount of the accounting adjustment (dated as of December 31) to get the correctending balance in the Income Taxes Payable account.2. Prepare journal entries to record (a) the December 31 adjustment to the Income Taxes Payableaccount and (b) the later January 20 payment 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 balanIncome Taxes Payable account.Note: Round intermediate calculations to the nearest whole dollar amount.Amount of accounting adjustment

Income tax is based on income. Suppose a person has salary income, capital gain income, house rent…

Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 32% 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 information 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 $35,716 on December 31 of the year just ended (its unadjusted balance is $31,216).

Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 32% 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 information 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 $35,716 on December 31 of the year just ended (its unadjusted balance is $31,216).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 3RE: Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that...

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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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