property taxes are $4,200 per year. The closing is April 20th and closing day is charged to the buyer. Using the 365-day method, how will the proration of property taxes show on on the closing statement?

Answers

Answer 1

Answer:

Dr Seller $1,254.25

Cr Buyer $1,254.25

Explanation:

Calculation for how will the proration of property taxes show on the closing statement

First step is to calculate days of seller ownership

Days of seller ownership= 31 days in January 31 + 28 days in February+31 days in March + 19 days in April

Days of seller ownership=109 days

Second step is to calculate the tax owed by the seller using this formula

Tax owed by the seller =[(Property taxes ÷365 days)*Days of seller ownership]

Let plug in the formula

Tax owed by the seller=[($4,200 per year÷365 days)*109 days

Tax owed by the seller=$1,254.25

Last step is how will the proration of property taxes show on on the closing statement

Closing statement Entries will be show as:

Dr Seller $1,254.25

Cr Buyer $1,254.25

Therefore how will the proration of property taxes show on the closing statement is Debit Seller $1,254.25 and Credit Buyer $1,254.25


Related Questions

Mark sold his home to Lenny. Lenny moved into the home, but did not record the deed. A few weeks later, Mark died. His heirs were unaware that he had sold the home, and conveyed title to Donald, who actually recorded the deed. Who owns the property

Answers

Answer:

Lenny

Explanation:

Even though Lenny moved into the home but did not record the deed which is a legal document that will prove and show the transfer of ownership of the property from Mark to Lenny in which Donald was the one who recorded the deed , the person who OWNS the property is LENNY reason been that we were told that Mark sold his home to LENNY before he died a few weeks later.

Therefore the person who owns the property is LENNY.

This management theory assumes there is no one best way to manage?

Answers

The contingency approach to management is based on the idea that there is no single best way to manage. Contingency refers to the immediate contingent circumstances. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances.

Of those listed below, the best example of a pure public good is a. a public school b. a radio broadcast c. a hardcover copy of a book d. a rock concert held in a small auditorium

Answers

Answer:

b. a radio broadcast

Explanation:

The pure public good is a good which is non-rivalrous and non-excludable. Non-rivalrous represents that the goods does not diminshed in the case when more people consumed it while on the other hand, the non-excludable represents that the goods are available to all

Therefore as per the given options, the option b is correct

hence, the other options are incorrect

Prepare the correcting entry.
The purchase of 1200 of office equipment with a three year useful life was debited to office supplies

Answers

You have to submit the one that is not working properly in a timely fashion but it’s a very nice way

New Ventures Enterprises Inc. Is considering a proposal to invest 600,000 in new Cell Telephone Product. Production equipment which will be depreciated on a straight-line basis with a 6-year life, and no salvage value. The projected

Answers

Answer:

Note: The full question is attached as picture below

                    New Ventures Enterprises Inc.

                               Income Statement

Sales                                                              $565,000

Cost of goods sold

Variable manufacturing cost   $100,000

Direct labor cost                       $150,000

Fixed manufacturing cost        $52,500

Total cost of goods sold                                $302,500

Gross Profit                                                     $262,500

Operating Expenses

Selling and administrative                              $74,000

Operating profit                                               $188,500

Income tax expenses at 15%                           $28,275

Net Income                                                       $160,225

18. In the current year, Marc, a single taxpayer, has ordinary income of $35,000. In addition, he has $3,000 in short-term capital gains (STCG), short-term capital losses (STCL) of $6,000, and long-term capital gains (LTCG) of $4,000. What is Marc's adjusted gross income (AGI) for the current year

Answers

Answer:

$36,000

Explanation:

The computation of the adjusted gross income for the present year is as follows:

= Ordinary income + short term capital gain - short term capital loss + long term capital gain

= $35,000 + $3,000 - $6,000 + $4,000

= $36,000

Hence, the adjusted gross income for the present year is $36,000

The same is relevant

Hey MCU fans, 30 pts to the first person who can answer this question! What was Loki's last words TO THOR before he died? Just thought this would be fun :)

Answers

“I assure you, brother, the sun will shine on us again.”

Hi guys! 40 points!

I would appreciate some help on this one, I'm stumped lol.

What are some ways to encourage companies to get involved in exporting? Would exporting necessarily lead to a favorable balance of trade?

Answers

Answer:

1. Give companies the idea that they have an advantage in certain foreign markets and that they can earn a lot of money from this. Companies that make good business with exporting goods also earn them a reputable reputation.

2. If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus. Conversely, if the imports exceed exports, an unfavourable balance of trade, or a trade deficit, exists.

Explanation:

hope this helps :)

A. Avoid extra payroll expenses.
B. Get the best rates on advertising.
C. Change the product you provide.
D. Use resources wisely.
E. Beat the competition.
F. Get the best rates on supplier purchases.
G. Eliminate some free services,
H. Increase worker efficiency,
1. A shop that sells fine glassware offers gift wrapping at no extra cost.
Rationale:

Answers

Answer:

A. Avoid extra payroll expenses.

Explanation:

i hope it helps :)

An expense is referred to as the outflow of the cash or the assets of the company or the firm. Basically, an expense is incurred when the company faces a shortage of assets or the company owns any of the liability.

The correct option is A. Avoid extra payroll expenses.

A shop that sells fine glassware offers gift wrapping at no extra cost avoids the payroll expenses. Payroll expenses are the expenses that are termed as the expenses that are regarding the wages and the compensation of the holidays and the sick pay. These all expenses are accrued at the closing dates.

To know more about the payroll expenses, refer to the link below:

https://brainly.com/question/25673613

Mario owns a store that sells skateboard equipment. Mario understands that people are most likely to notice his headline text in a text ad.What should Mario include in his headline

Answers

What Mario should do from including this in his headline is being considerate on how he is doing from knowing how the people are going to be apparently right to give note in his own headline he created by using a text ad.

Hello today January 1 happy new year​

Answers

Answer:

Happy New Year

Explanation:

Buyer Bill has agreed to pay for a computer system after all hardware has been installed and operational. What type of contract does Bill hold

Answers

Answer:

"Executory" is the right solution.

Explanation:

An executory contract would be a contract concluded by individuals involved, these same phrases among which are always to be accomplished at that same future stage. This same agreement states that when both parties always have responsibilities to fulfill before they could be finalized, which are often in a position in between the debt collector or bondholder and maybe the other individual.
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