A-z construction company was organized on may 1 of the current year. on may 2, a-z construction prepaid $18,480 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. a-z construction 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 (may 1 to december 31) is $45,000.journalize the two adjusting entries required to bring the accounts affected by the two taxes up to date as of december 31, the end of the current year.

Explanation:

The journal entries are shown below:

Taxes expense A/c Dr $12,320

        To Prepaid Taxes                      $12,320

(Being prepaid taxes are adjusted)

Taxes expense A/c Dr $45,000

        To Property taxes payable                   $45,000

(Being property taxes are adjusted)

The prepaid taxes are computed below:

= Prepaid taxes × (number of months ÷ total number of months in a year)

= $18,480 × (8 months ÷ 12 months)

= $12,320

The eight months is calculated from May 1  to December 31

answer; (a) calling people who have not shown interest in the product and asking them to buy it;