Use the Following Information to Answer Questions

question 65

Multiple Choice

Use the following information to answer questions.
Angel Eyes Corporation operates on a calendar year basis. The company is in its first year of operations and received its annual property tax bill on March 31 for $21,000. The bill is due May 1. Even though the company records adjusting entries on a monthly basis, no entries related to property taxes have been recorded.
-The March 31 entry to record property tax should be

• A) debit property tax expense $5,250 and credit property tax payable $5,250.
• B) debit property tax expense $21,000 and credit property tax payable $21,000.
• C) debits to prepaid property tax and property tax expense for $15,750 and $5,250, respectively and credits to property tax payable and cash for $15,750 and $5,250, respectively.
• D) debits to prepaid property tax and property tax expense for $15,750 and $5,250, respectively and credit to property tax payable for $21,000.

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Definitions:

Contractions

Contractions are shortened forms of words or phrases, created by omitting certain letters and sounds, typically in informal language (e.g., "can't" for "cannot").

Salutations

Formal or informal expressions of greeting or acknowledgment used in communication, especially at the beginning of letters or emails.

Response Time

The interval between a query or request and the receipt of the answer or reaction.

High-Context Culture

A culture in which most information is inferred from the context, rather than being spelled out explicitly in words.