Question

Part (b) only

Casual Industries received its 2016 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 8000D Property Tax Payable 18000 Attempts: 2 of 2 used *(b) Prepare the journal entry to record the payment of the property tax bill June 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

Answer 1

b
		Debit	Credit
June 30	Property tax expense	4000		=24000*2/12
	Property tax payable	8000
	Prepaid Property tax	12000
	Cash		24000