Question
Rosen Corporation was formed on December 12, 2018. It plans to close its books annually each December 31. Rosen is located in Lanmark City and
Rosen Corporation was formed on December 12, 2018. It plans to close its books annually each December 31. Rosen is located in Lanmark City and Apple County. The fiscal period of these two governmental units runs from July 1 to June 30. The property tax that they assess on property held on January 1 of each year becomes a lien against the property on July 1. The estimated property taxes for Rosen for the period July 1, 2019, to June 30, 2020, are $15,300. The tax bill is mailed in October with a requirement that the tax be paid before December 31. The tax bill received on October 30, 2019, for Rosen revealed an actual tax of $15,705, and the corporation paid this amount on November 30, 2019. Rosen elects to record monthly property tax adjustments for interim statements required by management.
1. Prepare the necessary journal entries to record:
| 1. The monthly property tax adjustments from July 2019 to October 2019 | |
| 2. The payment on November 30, 2019 (before the November 30 adjustment for property taxes) | |
| 3. The monthly property tax adjustments from November 2019 to June 2020 |
| July 1, 2019 | Property Tax Expense | 1275 | |
| Property Taxes Payable | 1275 | ||
| August 31, 2019 | Property Tax Expense | 1275 | |
| Property Taxes Payable | 1275 | ||
| September 30, 2019 | Property Tax Expense | 1275 | |
| Property Taxes Payable | 1275 | ||
| October 30, 2019 | Property Tax Expense | 1320 | |
| Property Taxes Payable | 1320 | ||
| November 30, 2019 | Property Taxes Payable | 5145 | |
| Prepaid Property Taxes | 10560 | ||
| Cash | 15705 | ||
| December 31, 2019 | Property Tax Expense | 1320 | |
| Prepaid Property Taxes | 1320 | ||
| January 31, 2020 | Property Tax Expense | 1320 | |
| Prepaid Property Taxes | 1320 | ||
| February 28, 2020 | Property Tax Expense | 1320 | |
| Prepaid Property Taxes | 1320 | ||
| March 31, 2020 | Property Tax Expense | 1320 | |
| Prepaid Property Taxes | 1320 | ||
| April 30, 2020 | Property Tax Expense | 1320 | |
| Prepaid Property Taxes | 1320 | ||
| May 31, 2020 | Property Tax Expense | 1320 | |
| Prepaid Property Taxes | 1320 | ||
| June 30, 2020 | Property Tax Expense | 1320 | |
| Prepaid Property Taxes | 1320 | ||
| July 31, 2020 | Property Tax Expense | 1320 | |
| Prepaid Property Taxes | 1320 |
I need help in ones in bold.
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