Accrued Income Taxes
Nolan Inc. had taxable income of $400,000 in 2019. Its effective tax rate is 35%. Nolan pays its 2019 income taxes on April 15, 2020.
Required:
1. Given this information, determine the adjusting journal entry that Nolan must make on December 31, 2019.
2. Prepare the journal entry to record the tax payment.
