For the Fiscal Year 2017, Twin City levied $60 million in property Taxes. Its past experience dictates that 10% of taxes will not be collected. A. Required: Prepare the general Journal entries to record the property levy using the following account titles: Property Taxes Receivable, Estimated Property Taxes Uncollectible and Revenue from Property Taxes (Control). B. On June 30, 2017 the City had collected $30 million of property taxes levied. Required: Prepare General Journal entries to record the receipt of this amount. c. On November 30, the City collected $25 million of property taxes levied. Required: Prepare the general journal entries to record the receipt of the taxes. D. What adjustment should the City make about the estimate of uncollectible account at the year end? E. How much is the delinquent of property taxes receivable at the end of the year? Show computation.
For the Fiscal Year 2017, Twin City levied $60 million in property Taxes. Its past experience dictates that 10% of taxes will not be collected. A. Required: Prepare the general Journal entries to record the property levy using the following account titles: Property Taxes Receivable, Estimated Property Taxes Uncollectible and Revenue from Property Taxes (Control). B. On June 30, 2017 the City had collected $30 million of property taxes levied. Required: Prepare General Journal entries to record the receipt of this amount. c. On November 30, the City collected $25 million of property taxes levied. Required: Prepare the general journal entries to record the receipt of the taxes. D. What adjustment should the City make about the estimate of uncollectible account at the year end? E. How much is the delinquent of property taxes receivable at the end of the year? Show computation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- For the Fiscal Year 2017, Twin City levied $60 million in property Taxes. Its past experience dictates that 10% of taxes will not be collected.
A. Required: Prepare the general Journal entries to record the property levy using the following account titles: Property Taxes Receivable, Estimated Property Taxes Uncollectible and Revenue from Property Taxes (Control).
B. On June 30, 2017 the City had collected $30 million of property taxes levied. Required: Prepare General Journal entries to record the receipt of this amount.
c. On November 30, the City collected $25 million of property taxes levied. Required: Prepare the general journal entries to record the receipt of the taxes.
D. What adjustment should the City make about the estimate of uncollectible account at the year end?
E. How much is the delinquent of property taxes receivable at the end of the year? Show computation.
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