he following information pertains to Hempstead City which has a December 31st year-end. Fiscal year 2020 governmental fund property tax revenues that are measurable and available equaled $12,000,000. Sales taxes collected by merchants in 2020 but not remitted to Hempstead City until January 2021 equaled $4,000,000. For the year ended December 31, 2020, Hempstead City should recognize revenues in its governmental fund financial statements of: A. $18,000,000. B. $16,000,000. C. $14,000,000.
The following information pertains to Hempstead City which has a December 31st year-end. Fiscal year 2020 governmental fund property tax revenues that are measurable and available equaled $12,000,000. Sales taxes collected by merchants in 2020 but not remitted to Hempstead City until January 2021 equaled $4,000,000.
For the year ended December 31, 2020, Hempstead City should recognize revenues in its governmental fund financial statements of:
| A. |
$18,000,000. |
|
| B. |
$16,000,000. |
|
| C. |
$14,000,000. |
|
| D. |
$12,000,000. |
Solution :
The correct answer is option B .$16,000,000
Calculation of the revenue to be recognized
|
Fiscal year 2020 governmental fund property tax revenues that are measurable and available |
$12,000,000 |
|
sales taxes collected by merchants in 2020 but not remitted to Hempstead City until January 2021 |
$4,000,000 |
|
Total |
$16,000,000 |
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