Seaboard Company receives its annual property tax bill of $24,000 for the 2021 calendar year on May

Question:

Seaboard Company receives its annual property tax bill of $24,000 for the 2021 calendar year on May 31, 2021, and it is payable on July 31, 2021. Seaboard has a December 31 fiscal year end.

Instructions

a. Prepare the journal entries for Seaboard on May 31, July 31, and December 31, 2021, assuming that the company makes monthly adjusting entries. (Assume property tax expense in 2020 was $2,200 per month.)

b. What is recorded on Seaboard’s December 31, 2021, balance sheet and income statement for the year ended December 31, 2021, in regard to property taxes?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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