Radar Company is located in a town that assesses property for tax purposes on July 1 for the period July 1 to June 30. The tax rate is not determined until October 10, and the tax bills are mailed October 20 with payment due by December 31. For the prior fiscal year, the Radar Company paid $18,000. The tax bill for the current fiscal year (July 1, 2014-June 30, 2015) is received on October 23, and property taxes have increased to $18,900. The company pays this amount on October 29.
Required:
a. Record the monthly property tax accrual recorded in July of 2014.
b .Record the payment of the taxes on October 29.
c. Record the monthly adjusting entry on October 31.

Question

Radar Company is located in a town that assesses property for tax purposes on July 1 for the period July 1 to June 30. The tax rate is not determined until October 10, and the tax bills are mailed October 20 with payment due by December 31. For the prior fiscal year, the Radar Company paid $18,000. The tax bill for the current fiscal year (July 1, 2014-June 30, 2015) is received on October 23, and property taxes have increased to $18,900. The company pays this amount on October 29.
Required: 
a. Record the monthly property tax accrual recorded in July of 2014.
b .Record the payment of the taxes on October 29.
c.  Record the monthly adjusting entry on October 31.

Quizplus · Accepted Answer

The Answer of Radar Company is located in a town that assesses property for tax purposes on July 1 for the period July 1 to June 30. The tax rate is not determined until October 10, and the tax bills are mailed October 20 with payment due by December 31. For the prior fiscal year, the Radar Company paid $18,000. The tax bill for the current fiscal year (July 1, 2014-June 30, 2015) is received on October 23, and property taxes have increased to $18,900. The company pays this amount on October 29.
Required: 
a. Record the monthly property tax accrual recorded in July of 2014.
b .Record the payment of the taxes on October 29.
c.  Record the monthly adjusting entry on October 31.

Radar Company Is Located in a Town That Assesses Property