Gateway Restaurants owns a building in Lancaster County that is assessed at $200,000, and another in Burnam County that is assessed at $400,000. Gateway has estimated the 20X1 property taxes for the two properties to be $7,200 and $18,000, respectively, and has made equal end-of-month adjusting entries for property taxes for January through October, 20X1.

On December 15, 20X1, both property tax bills arrive. The Lancaster bill is for $7,500, while the Burnam bill is for $19,000.

Required:

Make the necessary journal entries for the following dates:

1. The entry to record the liability for taxes on both properties on November 30, 20X1.

2. The entries to adjust the estimated annual taxes to actual on December 31, 20X1.

3. The entry for the payment of the taxes on January 15, 20X2.