• On December 31, 2019, the Foundation for the Arts pledged to donate $1, up to a maximum of $1 million, for each $3 that the museum is able to collect from other private contributors. The funds are to finance construction of the city-owned art museum. During 2020, the city collected $600,000 and received the matching money from the Foundation. In January and February 2021, it collected an additional $2,400,000 and also received the matching money. • During the year, the city imposed license fees o
The following information relates to Hudson City for its fiscal year ended December 31, 2020.
• During the year, retailers in the city collected $1,700,000 in sales taxes owed to the city. As of December 31, retailers have remitted $1,100,000. $200,000 is expected in January 2021, and the remaining $400,000 is expected in April 2021.
• On December 31, 2019, the Foundation for the Arts pledged to donate $1, up to a maximum of $1 million, for each $3 that the museum is able to collect from other private contributors. The funds are to finance construction of the city-owned art museum. During 2020, the city collected $600,000 and received the matching money from the Foundation. In January and February 2021, it collected an additional $2,400,000 and also received the matching money.
• During the year, the city imposed license fees on street vendors. All vendors were required to purchase the licenses by September 30, 2020. The licenses cover the one-year period from October 1, 2020, through September 30, 2021. During 2020, the city collected $240,000 in license fees.
• The city sold a fire truck for $40,000 that it had acquired five years earlier for $250,000. At the time of sale, the city had charged $225,000 in
• The city received a grant of $2 million to partially reimburse costs of training police officers. During the year, the city incurred $1,500,000 of allowable costs and received $1,200,000. It expects to incur an additional $500,000 in allowable costs in January 2021 and to be reimbursed for all allowable costs by the end of February 2021.
Refer to the two lists that follow. Select the appropriate amounts from the lettered list for each item in the numbered list. An amount may be selected once, more than once, or not at all.
1. Amount of sales tax revenue that the city should recognize in its funds statements
2. Amount of sales tax revenue the city should recognize as revenue in government-wide statements
3. Increase in deferred inflows in funds statements from sales tax revenues not yet received
4. Contribution revenue from Foundation for the Arts to be recognized in funds statements
5. Contribution revenue from Foundation for the Arts to be recognized in government-wide statements
6. Revenue from license fees to be recognized in funds statements
7. Increase in general fund balance owing to sale of fire engine
8. Increase in net position (government-wide statements) owing to sale of fire engine
9. Revenue in fund statements from police training grant
10. Revenue in government-wide statements from police training grant
a. $0
b. $1,500
c. $15,000
d. $30,000
e. $40,000
f. $60,000
g. $200,000
h. $225,000
i. $240,000
j. $400,000
k. $600,000
l. $998,000
m. $1,000,000
n. $1,200,000
o. $1,300,000
p. $1,500,000
q. $1,700,000
r. $2,000,000
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