Question

Part (c)

Casual Industries received its 2015 annual property tax bill for $24,000 on May 1. The taxes covered the period January - December, were payable by June 30 and were paid on that date. Casual has a December 31 fiscal year end and makes annual adjusting entries. *(a) Your answer is correct. Prepare the journal entry to record the receipt of the property tax bill on May 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit May 1 Property Tax Expense 18000 5 Property Tax Payable 79000 Attempts: 2 of 2 used *(b) Your answer is correct. Prepare the journal entry to record the payment of the property tax bill Junc 30. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit June 30 Property Tax Expense 14000 Property Tax Payable 8000 Prepaid Property Taxes 120003 52000 Attempts: 1 of 2 used *(c) Prepare any adjusting entries required at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation December 31

Answer 1

c
		Debit	Credit
December 31	Property tax expense	12000
	Prepaid Property taxes		12000