Other accrued liabilities—real estate taxes Glennelle’s Boutique Inc. operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2019 are issued in May 2020 and are payable in July 2020.
Other accrued liabilities—real estate taxes Glennelle’s Boutique Inc. operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2019 are issued in May 2020 and are payable in July 2020.
Required:
Explain how the amount of tax expense for calendar 2019 and the amount of taxes payable (if any) at December 31, 2019, can be determined.
Use the horizontal model (or write the
Assume that the actual tax bill, received in May 2020, was for $47,600. Use the horizontal model (or write the journal entry) to show the effects of the appropriate adjustment to the amount previously accrued.
page 263 Determine the income statement and balance sheet effects of not accruing 2019 taxes at December 31, 2019 (assuming that taxes in b are not accrued).
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