Northwest financial services was organized upon April 1 of the current year. On April 2 Northwest prepaid $4,500 to city for taxes (license fees) for the next 12 months as well as debited the prepaid taxes account. Northwest is also needed to pay in January an annual tax (on property) for the previous calendar year. The estimated amount of property tax for the current year is 21,375
A. Journalize the tw adjuting entries requird to bring the accounts affecte by the two taxes up to date as of December 31, the end of the current year?
B. What is the amount of tax expense for the current year