Dependable Deliveries, Inc., has real property with an assessed value of $350,000.00. The annual tax rate in the city where the property is located is 4.5% of assessed value. Half of the annual tax is collected every six months.

Instructions:

1. Calculate Dependable Deliveries’ total annual property tax.

2. Journalize the payment oft he tax on February 26 with check No. 124. Use page 3 of a cash payments journal.