PART 1: We takeover a property on January 1 st and the client informs us that they want us to use the ACCRUAL-BASIS method for financial reporting. They also inform us that the real estate taxes will be due in December and that they expect the tax bill to be right around $12,000.00. They expect us to include a monthly Real Estate Tax Accrual in the amount of $1,000.00 on the financial statements. What would you debit and what would you credit?

PART 2: During the month of December (of that same year), we issue a check for the real estate taxes in the amount of $12,000.00. YTD, weve already accrued $11,000.00 for the real estate taxes on this property. Using one journal entry, record the transaction of issuing the check for $12,000.00 and truing-up the YTD accrual for the real estate taxes.