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Question - Vaughn Financial Services has its headquarters in Nanaimo, British Columbia. The City of Nanaimo assesses property taxes on June 30 annually and notifies property owners electronically. Property taxes are due to be paid by July 31. Property taxes are for the calendar year. On June 30, 2022, Vaughn receives its notice for its 2022 property taxes, which are due in the amount of $11,760.
Required -
1. Prepare the journal entry on June 30 when Vaughn receives its property tax notice.
2. Prepare the journal entry on July 31 when Vaughn pays its property taxes.
3. Prepare any required year-end adjusting entries. Vaughn has a calendar year end.
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