At the beginning of 2020, the balance sheet of a county general fund reports $500,000 in property taxes receivable from 2019, of which $350,000 are considered uncollectible. During 2020 the county sends out tax bills in the amount of $10,000,000, of which $600,000 are expected to be uncollectible. Cash collections on 2019 taxes are $140,000, and the remaining uncollected taxes are written off. Cash collections on 2020 taxes are $9,500,000. Of the $500,000 uncollected at the end of 2020, $100,000 are expected to be collected within 60 days, $65,000 are expected to be collected more than 60 days after year-end, and the rest are uncollectible. The general fund's balance sheet at the end of 2020 will include:
At the beginning of 2020, the balance sheet of a county general fund reports $500,000 in property taxes receivable from 2019, of which $350,000 are considered uncollectible. During 2020 the county sends out tax bills in the amount of $10,000,000, of which $600,000 are expected to be uncollectible. Cash collections on 2019 taxes are $140,000, and the remaining uncollected taxes are written off. Cash collections on 2020 taxes are $9,500,000. Of the $500,000 uncollected at the end of 2020, $100,000 are expected to be collected within 60 days, $65,000 are expected to be collected more than 60 days after year-end, and the rest are uncollectible. The general fund's balance sheet at the end of 2020 will include:
Chapter6: Business Expenses
Section: Chapter Questions
Problem 53P
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1. At the beginning of 2020, the balance sheet of a county general fund reports $500,000 in property taxes receivable from 2019, of which $350,000 are considered uncollectible. During 2020 the county sends out tax bills in the amount of $10,000,000, of which $600,000 are expected to be uncollectible. Cash collections on 2019 taxes are $140,000, and the remaining uncollected taxes are written off. Cash collections on 2020 taxes are $9,500,000. Of the $500,000 uncollected at the end of 2020, $100,000 are expected to be collected within 60 days, $65,000 are expected to be collected more than 60 days after year-end, and the rest are uncollectible.
The general fund's balance sheet at the end of 2020 will include:
The general fund's balance sheet at the end of 2020 will include:
Select one:
A. Property taxes receivable, net of uncollectibles, of $100,000
B. Deferred inflows of $65,000
C. Property taxes receivable, net of uncollectibles, of $500,000
D. Deferred inflows of $165,000
2.
What was the credit balance in fund balance—unassigned at the beginning of the year, before the budget entry was made?
Below is the preclosing trial balance of a town's general fund at year-end:
|
|
Dr
|
Cr
|
|
Cash
|
$ 8,000
|
|
|
Property taxes receivable, net
|
35,000
|
|
|
Estimated revenues
|
1,000,000
|
|
|
Estimated other financing sources
|
15,000
|
|
|
Operating expenditures
|
1,003,000
|
|
|
Accounts payable
|
|
40,000
|
|
Appropriations
|
|
1,005,000
|
|
Property tax revenues
|
|
989,000
|
|
Bond proceeds
|
|
15,000
|
|
Fund balance—unassigned
|
_________
|
12,000
|
|
|
$ 2,061,000
|
$ 2,061,000
|
What was the credit balance in fund balance—unassigned at the beginning of the year, before the budget entry was made?
Select one:
A. $14,000
B. $ 7,000
C. $ 2,000
D. $12,000
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