Question

In: Accounting

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
Next > < Previous

Related Solutions

On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set for April 1.
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set for April 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month. Answer: $288
A homeowner has a mortgage payment of $998.60, an annual property tax bill of $594, and...
A homeowner has a mortgage payment of $998.60, an annual property tax bill of $594, and an annual fire insurance premium of $320. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)
On the first day of its fiscal year, Lessor, Inc., leased certain property at an annual...
On the first day of its fiscal year, Lessor, Inc., leased certain property at an annual rental of $100,000 receivable at the beginning of each year for 10 years. The first payment was received immediately. The leased property is new, had cost $650,000, and has an estimated useful life of 13 years with no salvage value. The rate implicit in the lease is 8%. The present value of an annuity of $1 payable at the beginning of the period at...
Christopher Chamberlain has a monthly mortgage payment of $1145.50 and an annual property tax bill of...
Christopher Chamberlain has a monthly mortgage payment of $1145.50 and an annual property tax bill of $1074. The annual fire insurance premium is $720. Find the total monthly payment for the mortgage, property tax and fire insurance.
On July 1, 2017, the beginning of its fiscal year, Ridgedale County recorded gross property tax...
On July 1, 2017, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $3,700,000. The county estimated that 4 percent of the taxes levied would be uncollectible. As of April 30, 2018, the due date for all property taxes, the county had collected $3,425,000 in taxes. The county imposed penalties and interest in the amount of $14,000, but only expects to collect $12,550 of that amount. At the end of the fiscal year (June 30,...
On april 1, 2016 SBD corp paid $120000 for rent on warehouse space one year in...
On april 1, 2016 SBD corp paid $120000 for rent on warehouse space one year in advance. On october 1 2016 SBD corp entered into a lease agreement to rent out its old warehouse space it was no longer using. This agreement calls for SBD to receive $8000 per month from the lessee, due and payable at the end of the 4 month lease term. At december 31 2016 none of the rental payments from the lessee had yet been...
A tax assessor wants to assess the mean property tax bill for all homeowners in Mount...
A tax assessor wants to assess the mean property tax bill for all homeowners in Mount Olympus. Based upon previous studies the tax assessor will assume that the population standard deviation is 735 drachma. How many tax records should be sampled if we want to be 95% confident that the sample mean tax bill is within 101 drachma? Assume the population is normally distributed.
Assume that, on January 1, 2016, Matsui Co. paid $1,296,000 for its investment in 48,000 shares...
Assume that, on January 1, 2016, Matsui Co. paid $1,296,000 for its investment in 48,000 shares of Yankee Inc. Further, assume that Yankee has 240,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $480,000 at January 1, 2016. The following information pertains to Yankee during 2016:      Net income $240,000   Dividends declared and paid $72,000   Market price of common stock on 12/31/2016 $29/share    What amount would Matsui report in...
1.) What is the total property tax bill for your house in Ohio with a market...
1.) What is the total property tax bill for your house in Ohio with a market value of $125,000? Note the following and show your calculations in the space below:  You are eligible for the $25,000 homestead exemption.  The city in which you live has a millage rate of 70.  Don’t forget residential taxable value is 45% of assessed value in Ohio! Assuming the exact same scenario as above; 2.) Research online to identify a proposed levy...
1.) What is the total property tax bill for your house in Ohio with a market...
1.) What is the total property tax bill for your house in Ohio with a market value of $125,000? Note the following and show your calculations in the space below:  You are eligible for the $25,000 homestead exemption  The city in which you live has a millage rate of 70.  Don’t forget residential taxable value is 35% of assessed value in Ohio! Assuming the exact same scenario as above; 2.) Research online to identify a proposed levy...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT