[jgerm]

You are the new junior accountant for Acme Printing Company. Acme?s fiscal year ends on December 31. You are responsible for preparing monthly financial statements. Acme Printing Company estimated its property tax bill for 2011 to be $12,000
During February 2011, Acme received the actual property tax bill for 2011 in the amount of $15,300, to be paid in installments. The installments are to be paid as follows:
Feb 28
$4,300
May 1
$4,000
Jul 1
$4,000
Sep 1
$3,000
Assume that the January 31, 2011 adjusting entries and financial statements have already been prepared and that the following journal entry was recorded:
DATE DESCRIPTION DR CR
Jan 31 Property Tax Expense 1,000

Property Tax Payable
1,000

The record 1 month of property tax payable($12,000/12=$1,000) based on estimate for the year



Assume that the above entry cannot be reversed or adjusted.

Required:

A) What is the amount that will be allocated as property tax expense for each month starting from February? (Hint: The expense for January has already been allocated but Property Tax Expense for the year is now known to be $15,300 rather than $12,000. The January expense amount cannot be adjusted as stated in the question.)

Monthly Property Tax Expense: $

B) Record the journal entries for the monthly adjusting entries to record property tax expense as well as the installment payments listed above for the period February to May. Note that the descriptions and account names for the journal entries have been provided to you. Enter the debit and credit amounts.

DATE DESCRIPTION DR CR
Feb 28 Property Tax Payable


Property Tax Expense


Prepaid Property Tax


Cash


To record payment of Jan. Accrual and payment of Feb. Expense (the difference is a prepayment)


Mar 31 Property Tax Expense


Prepaid Property Tax


To recognize property tax expense accrued


Apr 30 Property Tax Expense


Prepaid Property Tax


Property Tax Payable


To recognize property tax accrued


May 1 Property Tax Payable


Prepaid Property Tax


Cash


To recognize Installment payment


May 31 Property Tax Expense


Prepaid Property Tax


To recognize prepaid tax accrued



C) Record the journal entries for the monthly adjusting entries to record property tax expense as well as the installment payments listed above for the period June to December. Note that the account names and descriptions for the journal entries have not been provided to you this time. Select the appropriate accounts and enter the debit and credit amounts.

DATE DESCRIPTION DR CR
Jun 30






Jul 1






Jul 31






Aug 31






Sep 1






Sep 30






Oct 31






Nov 30






Dec 31