Digger Oil & Gas has received its invoice in the amount of $85,000 for property taxes for the year 2010.The invoice was received and paid in June 2010 and the entire amount was debited to property tax expense.Assuming Digger does NOT prepare interim financial statements, the required adjustment on December 31, 2010 is
A)debit property tax expense and credit prepaid property tax $49,583.
B)debit prepaid property tax and credit property tax expense $49,583.
C)debit property tax expense and credit prepaid property tax $35,417.
D)no entry required.

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The Answer of Digger Oil & Gas has received its invoice in the amount of $85,000 for property taxes for the year 2010.The invoice was received and paid in June 2010 and the entire amount was debited to property tax expense.Assuming Digger does NOT prepare interim financial statements, the required adjustment on December 31, 2010 is
A)debit property tax expense and credit prepaid property tax $49,583.
B)debit prepaid property tax and credit property tax expense $49,583.
C)debit property tax expense and credit prepaid property tax $35,417.
D)no entry required.

Digger Oil & Gas Has Received Its Invoice in the Amount