Question
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
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 El and $3,465 is for income taxes. Apr 30 Paid the property taxes bill in full. The journal entry to record payment on Apr 30 is Proper Payable...... Proper Expense. Prepaid roperty Tax. Cash.............. Property Tax Expense..... Cash.... 1,875 625 5,000 $7,500 7,500 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.. Cash.......... 1,875 3,125 None of the above
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