On April 23, 2016 Artimis Co. paid its annual property tax bill. Artimis Co. fiscal year...

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.

Solutions

Expert Solution

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

ekkarill92 answered 1 year ago

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