Reference no: EM132835595

Problem 1: Craig Design Inc. received its annual property tax bill for $7,200 in January. It is due on February 28th. What is the journal entry that should be made in January?

a)

Prepaid Property Tax ......................... 7,200

Property Tax Payable ...................... 7,200

b)

Property Tax Expense ......................... 600

Property Tax Payable ...................... 600

c)

Property Tax Expense ......................... 7,200

Property Tax Payable ...................... 7,200

d)

Property Tax Expense ......................... 600

Prepaid Property Tax ......................... 6,600

Property Tax Payable ...................... 7,200