Chapter 9, Problem 10E

Property Taxes Family Practice Associates has an estimated property tax liability of $7,200 assessed as of January 1,2019, for the year May 1, 2019, to April 30, 2020. The property tax is paid on September 1, 2019. The property tax becomes a lien against the property on May 1.

Required:

1. 1. Prepare the necessary monthly journal entries to record the preceding information for the period from May 1 to September 30, 2019 (assuming actual taxes are the same as estimated).
2. 2. What would be the amount of the liability on December 31, 2019?