Use the Following Information to Answer Questions

question 63

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.
-Assuming appropriate adjusting entries were completed for the April month end, what entry should be recorded for the payment on May 1?

• A) debit prepaid property tax $21,000 and credit cash $21,000
• B) debits to prepaid property tax and property tax expense for $14,000 and $7,000, respectively and credit to cash for $21,000
• C) debits to prepaid property tax and property tax payable for $14,000 and $7,000, respectively and credit to cash $21,000
• D) debit property tax payable $15,750 and credit to cash $15,750.

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Definitions:

Team Experience

The collective knowledge, skills, and interpersonal dynamics that shape how a team performs and operates.

Social Relations

The interactions between individuals and groups within a society, shaped by social structures and processes.

FIRO-B Theory

A psychological theory that explains how interpersonal relations are determined by individual needs for inclusion, control, and affection.

Compatible Needs

The concept in social psychology that suggests people are drawn together based on similar needs and goals.