Principles of Financial Accounting (Elon University)
11th Edition
ISBN: 9781308839233
Author: Marshall
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 7, Problem 7.8E
Exercise 7.8
LO 5
Other accrued liabilities-real estate taxes Glennelle's Boutique, Inc., operates in a city in which real estate tax hills for one year are issued in May of the subsequent year. Thus, tax hills for 2016 are issued in May 2017 and are payable in July 2017.
Required:
- Explain how the amount of tax expense for calendar 2016 and the amount of taxes payable (if any) at December 31, 2016, can be determined.
- Use the horizontal model (or write the
journal entry ) to show the effect of accruing 2016 taxes of $12,800 at December 31, 2016. - Assume that the actual tax bill, received in May 2017, was for $13,600. Use the horizontal model (or write the journal entry) to show the effects of the appropriate adjustment to the amount previously accrued.
- Determine the income statement and
balance sheet effects of not accruing 2016 taxes at December 31, 2016 (assuming that taxes in b are not accrued).
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Chapter 7 Solutions
Principles of Financial Accounting (Elon University)
Ch. 7 - Prob. 7.1MECh. 7 - Mini-Exercise 7.2 LO 4 Other accrued...Ch. 7 - Mini-Exercise 7.3 LO 5 Other accrued...Ch. 7 - Prob. 7.4MECh. 7 - Exercise 7.5 LO 2 Notes payable-discount basis On...Ch. 7 - Prob. 7.6ECh. 7 - Exercise 7.7 LO 4 Other accrued...Ch. 7 - Exercise 7.8 LO 5 Other accrued liabilities-real...Ch. 7 - Exercise 7.9 LO 5 Other accrued...Ch. 7 - Exercise 7.10 LO 5 Other accrued...
Ch. 7 - Exercise 7.11 LO 3 Unearned revenues-customer...Ch. 7 - Exercise 7.12 LO 3 Unearned revenues-ticket sales...Ch. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Exercise 7.21 LO 4. 5, 8 Transaction...Ch. 7 - Prob. 7.22ECh. 7 - Prob. 7.23ECh. 7 - Prob. 7.24ECh. 7 - Prob. 7.25PCh. 7 - Problem 7.26 LO 3 Unearned revenues-subscription...Ch. 7 - Prob. 7.27PCh. 7 - Prob. 7.28PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33CCh. 7 - Prob. 7.34CCh. 7 - Prob. 7.35C
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