Leung Properties Co. paid $5,600 for property taxes in the 2013 calendar year. In 2014, Leung receives its property tax bill on May 1 for $6,200 which is payable on June 30, 2014.

Instructions

Calculate the prepaid or property taxes payable that Leung will report on its balance sheet if Leung's year end is (Hint: Treat each situation separately, assuming the the bill was paid on time, was it prepaid or accrued at year end, according to GAAP standards.)