Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 67

For the following questions, circle the best response.

Evan and Michelle ask what should be done in their records in relation to the $1,900 they owe (but have not paid) Greenview County for property taxes on their farm at the end of 2010. You would respond by describing the journal entry they should record, which includes a $1,900

a. decrease (credit) to Cash.

b. increase (debit) to Cash.

c. decrease (debit) to Property Taxes Payable.

d. increase (debit) to Property Taxes Expense.

e. increase (credit) to Property Taxes Revenue.