On April 23, 2016 Artimis Co. paid its annual property tax bill. Artimis Co. fis
ID: 2530729 • Letter: O
Question
On April 23, 2016 Artimis Co. paid its annual property tax bill. Artimis Co. fiscal year is also the calendar year. The annual bill is $840,000.
How much property tax expense should be reported in Artimis Co.'s income statement for the quarter ending March 31, 2016.
Prepare the journal entry to record Artimis Inc.'s property tax expense for the first quarter ending March 31, 2016.
Prepare the journal entry for April 23, 2016 for the payment of property taxes and proper recording of property tax expenses for the quarter ending June 30th or any prepaid property taxes as of the endof April 2016 .
Prepare the journal entry for quarter ending September 30, 2016 for the recording of property taxes expenses for the quarter.
Prepare the journal entry for quarter ending December 31, 2016 for the recording of property taxes expenses for the quarter.
Explanation / Answer
Property tax expense for month of march 31 2016 is $210000 ($840000/4)
Journal
DATE
PARTICULAR
DEBIT
CREDIT
Property Taxes
Property Taxes Payable
(To accrue property tax expense for quarter ending march)
210000
210000
April 23,2016
Property Taxes Payable
Prepaid Property Taxes
Bank
( Property taxes Paid)
210000
630000
840000
Property Taxes
Prepaid property taxes
(To record prepaid property expense for the quarter ending June)
210000
210000
Property Taxes
Prepaid property taxes
(To record prepaid property expense for the quarter ending September)
210000
210000
Property Taxes
Prepaid property taxes
(To record prepaid property expense for the quarter ending December)
210000
210000
DATE
PARTICULAR
DEBIT
CREDIT
Property Taxes
Property Taxes Payable
(To accrue property tax expense for quarter ending march)
210000
210000
April 23,2016
Property Taxes Payable
Prepaid Property Taxes
Bank
( Property taxes Paid)
210000
630000
840000
Property Taxes
Prepaid property taxes
(To record prepaid property expense for the quarter ending June)
210000
210000
Property Taxes
Prepaid property taxes
(To record prepaid property expense for the quarter ending September)
210000
210000
Property Taxes
Prepaid property taxes
(To record prepaid property expense for the quarter ending December)
210000
210000
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