Art Imaging Company was organized on April 1 of the current year. On April 2, Art Imaging Company prepaid $54,000 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. Art Imaging Company 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 (April 1 to December 31) is $26,500.
I need help with this to create two adjusting entries. Please help me with this no later than Wednesday at 11 P.M.
This question was answered on: Jan 30, 2021
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