Answer Happy

Music Media Ltd. prepares statements quarterly.
Part A:
Required:
1. Based on 2019 results, Music’s estimated tax
liability for 2020 is $333,960. Music will accrue 1/28 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.
2. At year-end, December 31, the actual
income tax for 2020 was determined to be $339,420. 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.
Part B:
Required:
3. Complete the following table assuming Music
estimates its tax liability for the year 2020 to be
$667,500. (Do not round intermediate
calculations.)
4. Assuming that actual tax for the year 2020
was determined to be $812,000, 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.
5. Calculate Music’s actual profit for the
year 2020.