Throughout 1990 , K Company owned property that was subject to county property taxes and had an

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Throughout 1990 , K Company owned property that was subject to county property taxes and had an assessed valuation for tax purposes of \(\$ 900,000\). The 1989 tax levy was \(\$ 0.60\) per \(\$ 100\) of assessed valuation and the company expected the 1990 rate to remain unchanged. In early June, the county announced that the 1990 tax levy would be \(\$ 0.66\) per \(\$ 100\) and that taxes would be due July 31, 1990. Prepare entries to record property tax expense for the months of May, June, and July (including the payment of the annual tax on July 31).

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Financial Accounting

ISBN: 9780256091939

5th Edition

Authors: Kermit D. Larson, Paul B. W. Miller

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