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Barker Company Has a December 31 Year End

Question 78

Multiple Choice

Barker Company has a December 31 year end. The company received its property tax bill for 2021 on March 1, 2021. According to the bill, taxes of $ 24,000 for the year ended December 31, 2021 are due by April 30, 2021. On April 30, 2021, Barker will record which of the following entries?


A) Dr. Cash; Cr. Property Tax Payable
B) Dr. Property Tax Payable; Dr. Prepaid Property Tax; Cr. Cash
C) Dr. Property Tax Expense; Cr. Property Tax Payable
D) Dr. Property Tax Expense; Cr. Cash

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