Glennelle's Boutique, Inc. operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2016 are issued in May 2017 and are payable in July 2017.

8. value:

10.00 points Required information

Required:

a.Explain how the amount of tax expense for calendar 2016 and the amount of taxes payable (if any) at December 31, 2016, can be determined.

The amount is estimated based on prior year taxes.The amount is estimated based on future year taxes.

References eBook & Resources Multiple ChoiceDifficulty: 1 EasyLearning Objective: 07-05 Discuss the importance of making estimates for certain accrued liabilities and show how these items are presented in the balance sheet.Ask your instructor a questionCheck my work

9. value:

10.00 points Required information

b-1.Use the horizontal modelto show the effect of accruing 2016 taxes of $6,500 at December 31, 2016.(Use amounts with + for increases and amounts with for decreases.)

References eBook & Resources WorksheetDifficulty: 1 EasyLearning Objective: 07-05 Discuss the importance of making estimates for certain accrued liabilities and show how these items are presented in the balance sheet.Ask your instructor a questionCheck my work

10. value:

10.00 points Required information

b-2.Record the journal entry to show the effect of accruing 2016 taxes of $6,500 at December 31, 2016.(If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

References eBook & Resources WorksheetDifficulty: 1 EasyLearning Objective: 07-05 Discuss the importance of making estimates for certain accrued liabilities and show how these items are presented in the balance sheet.Ask your instructor a questionCheck my work

11. value:

10.00 points Required information

c-1.Assume that the actual tax bill, received in May 2017, was for $7,520. Use the horizontal modelto show the effects of the appropriate adjustment to the amount previously accrued.(Use amounts with + for increases and amounts with for decreases.)

References eBook & Resources WorksheetDifficulty: 1 EasyLearning Objective: 07-05 Discuss the importance of making estimates for certain accrued liabilities and show how these items are presented in the balance sheet.Ask your instructor a questionCheck my work

12. value:

10.00 points Required information

c-2.Assume that the actual tax bill, received in May 2017, was for $7,520. Record the journal entry to show the effects of the appropriate adjustment to the amount previously accrued.(If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

References eBook & Resources WorksheetDifficulty: 1 EasyLearning Objective: 07-05 Discuss the importance of making estimates for certain accrued liabilities and show how these items are presented in the balance sheet.Ask your instructor a questionCheck my work

13. value:

10.00 points Required information

d.Determine the income statement and balance sheet effects of not accruing 2016 taxes at December 31, 2016 (assuming that taxes in b are not accrued).