38. Fantastic Fashions has just completed its first quarter of operations. Assume that Fantastic Fashions adjusts its book quarterly. Below are transactions that have not yet been recorded.

Jan 1 Made cash sales of $75,000 before tax. HST is collected on all sales at a rate of 13%.

Jan 15 Signed a six month note for $12,000 to extend amounts owing on account to Trendy Taste Inc. Interest is 6% annually and due at maturity.

Mar 1 Received the annual property tax bill for $7,500 payable on Apr 30.

Apr 1 Paid gross salaries of $10,000; of this amount $495 is CPP, $178 is EI and $3,465 is for income taxes.

Apr 30 Paid the property taxes bill in full.

Taking into consideration the March 1 transaction, the journal entry to record payment on Apr 30 is

Question 38 options:

Property Tax Payable			1,250
Property Tax Expense			1,250
Prepaid Property Tax			5,000
	Cash			7,500

Property Tax Expense			7,500
	Cash			7,500

Property Tax Payable			625
Property Tax Expense			1,875
Prepaid Property Tax			4,375
	Cash			7,500

Property Tax Payable			1,250
Property Tax Expense			1,875
	Cash			3,125

None of the above