Bonita Corporation operates on a calendar year basis. The company is in its first year of operations and received its annual property tax bill on March 31 for $21900. The bill is due May 1. Even though the company records adjusting entries on a monthly basis, no entries related to property taxes have been recorded. The March 31 entry to record property tax should be O debits to prepaid property tax and property tax expense for $16425 and $5475, respectively and credits to property tax payable and cash for $16425 and $5475, respectively. O debit property tax expense $5475 and credit property tax payable $5475. O debit property tax expense $21900 and credit property tax payable $21900. debits to prepaid property tax and property tax expense for $16425 and $5475, respectively and credit to property tax payable for $21900.

Bonita Corporation operates on a calendar year basis. The company is in its first year of operations and received its annual property tax bill on March 31 for $21900. The bill is due May 1. Even though the company records adjusting entries on a monthly basis, no entries related to property taxes have been recorded. The March 31 entry to record property tax should be O debits to prepaid property tax and property tax expense for $16425 and $5475, respectively and credits to property tax payable and cash for $16425 and $5475, respectively. O debit property tax expense $5475 and credit property tax payable $5475. O debit property tax expense $21900 and credit property tax payable $21900. debits to prepaid property tax and property tax expense for $16425 and $5475, respectively and credit to property tax payable for $21900.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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