LO 2 P5-46. (Accounting for property taxes)At the start of calendar year 2022, Central City's records showed the following accounts relative toprior year property taxes:Property taxes receivable-delinquent.Allowance for refunds and uncollectible taxes-delinquent..Deferred inflow of resources-unavailable property taxes..$52,0008,00015,000Prepare journal entries to record the following transactions:1. To balance its 2022 budget, which requires $1,500,000 in property taxes, Central City levies propertytaxes in the amount of $1,515,000, providing an allowance of $15,000 for uncollectible accounts.2. During the year 2022, it collects property taxes as follows:$ 44,000From prior year delinquent taxesFrom 2022 tax levy....1,490,0003. Central City recognizes $15,000 of the deferred inflow of resources-unavailable property taxes asrevenues in 2022.4. It initiates foreclosure proceedings against the delinquent taxpayer who owed the city $8,000. Whenit does this, it charges the taxpayer a penalty of $1,000.5. An auctioneer sells the foreclosed property for $40,000, deducts a fee of $3,000, and remits $37,000to the city. The city deposits the check and prepares a voucher for the net amount due to the taxpayer.6. The city reverses the Allowance for refunds and uncollectible taxes–delinquent ($8,000) becausethe lien has been satisfied and all prior year delinquent taxes have been collected.7. Central City rebates $12,000 to taxpayers who had paid their 2022 taxes, but who successfully ap-pealed their tax assessments.8. At year-end, the city (a) declares all unpaid 2022 taxes as delinquent; (b) concludes that there is noneed for an allowance for uncollectible accounts; and (c) estimates that $15,000 of the delinquenttaxes will be collected in the first 60 days of calendar year 2023.

Journal entries refer to the systematic documentation of the financial transactions of a company in…

Answered: P5-46. (Accounting for property taxes)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1. If a company has a pre - tax accounting income of $1, 000, with interest revenue from municipal bonds totaling S500, and operates under a 20% tax rate, how would you record the journal entry?
Changes in mix of revenues and expenditures must be interpreted with care. The data that follow were drawn from the city of Boulder, Colorado’s CAFR. Dates have been changed. They are from two statistical-section schedules showing the mix of revenue and expenditures for a 10-year period. They include amounts only from the general fund, special revenue funds, and debt service funds. 2020 2021 (amounts in thousands) Revenues Sales and use taxes $ 97,397 $104,136 General property taxes 29,474 29,434 Other taxes 20,278 21,184 Charges for services 27,030 22,670 Intergovernmental 16,420 13,348 Proceeds from bonds and notes 54,830 Other 20,660 21,473 Total revenues $266,089 $212,245 Expenditures General government and administration $ 27,717 $ 30,185 Public safety 47,825 48,202 Public works 22,178 27,896 Housing and human services 13,384 20,226 Culture and recreation 25,677 28,089 Capital outlay 29,111 19,218 Debt service 13,574 16,375…
The unadjusted trial balance for the General Fund of the City of Allensville at June 30, 2019 is as follows: Debits Accounts Receivable $40,000 Cash 75,000 Due from Agency Fund 25,000 Encumbrances 60,000 Estimated Revenues 975,000 Expenditures 750,000 Taxes Receivable 250,000 $2,175,000 Credits Allowance for Doubtful Accounts $ 5,000 Allowance for Uncollectible Taxes 50,000 Appropriations 785,000 Due to a Utility Fund 40,000 Unassigned Fund Balance (160,000) Estimated…
Ashavin
Don't give answer in image format
The City of Castleton’s General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Debits Credits Cash $ 476,000 Taxes Receivable—Delinquent 601,000 Allowance for Uncollectible Delinquent Taxes $ 189,120 Interest and Penalties Receivable 28,080 Allowance for Uncollectible Interest and Penalties 12,960 Inventory of Supplies 17,900 Vouchers Payable 166,500 Due to Federal Government 77,490 Deferred Inflows of Resources—Unavailable Revenues 427,000 Fund Balance—Nonspendable—Inventory of Supplies 17,900 Fund Balance—Unassigned 232,010 $ 1,122,980 $ 1,122,980 Prepare a General Fund balance sheet as of June 30, 2020.
Dawson City has a December 31 fiscal year end. The City levies property taxes of $5,000,000 on February 1, 2022 and expects 2% to be uncollectible. The City has two due dates for collection, 1/2 on October 31, 2022 and 1/2 on April 30, 2023. Record the requested journal entries: 1. Record the levy on February 1, 2022, assuming the City records the entire levy as unavailable revenue. 2. Record the collection of property taxes of $2,410,000 on October 31, 2022. 3. Record any necessary adjusting journal entry at December 31, 2022. 4. Record any necessary journal entry to recognize revenue associated with the 2/1/2022 levy in 2023. Repeat this process and record all four journal entries if the entire levy had been treated as revenue at the time of the levy.
Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2024 $918 774 $144 $126 2025 $ 1,010 830 $ 180 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 million. The cost is tax deductible in 2024. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in…
Kellman Jerkirer Inc. has a December 31 year-end. The local municipality billed the entire 2022 property taxes of $20,000 on April 1, 2022. Kellman paid $4,000 of the 2022 property taxes on May 31, 2022. Required: Calculate the balance of the property tax payable or prepaid property tax account as at May 31, 2022.$fill in the blank 1
1. The City of Access collects its annual property taxes late in its fiscal year. Consequently, cach year it must finance part of its operating budget using tax anticipation notes. The notes are repaid upon collection of property taxes. On April 1, 2016, the City estimated that it will require OMR 2,500,000 to finance governmental activities for the remainder of the 2016 fiscal year. On that date, it had OMR 790,000 of cash on hand and OMR 830,000 of current liabilities. Collections for the remainder of FY 2016 from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at OMR 1,100,000. Required: Calculate the estimated amount of tax anticipation financing that will be required for the remainder of FY 2016. Show work in good form.
Godo
Property Tax Revenue: A city that has a 12/31 fiscal year end has adopted a policy of recognizing property tax revenue consistent with the modified accrual accounting 60-day availability rule under GAAP. Assume every December 31st the government properly defers revenue amounts deemed unavailable. Important dates related to property tax revenue are listed below. 10/1/2019 Fiscal year 2020 property taxes of $800,000 (5% of which are estimated to be uncollectible) are levied (e.g. sent to taxpayers) and are legally enforceable on 10/1/2019 to finance the activities of fiscal year 2020. 1/1/2020 Tax and fiscal year 2020 begins. Cash collections related to property taxes are as follows: 2/15/2020 related to 2019 property taxes $40,000 5/30/2020 related to 2019 property taxes $10,000 11/10/2020 related to 2020 property taxes $590,000 1/30/2021 related to 2020 property taxes…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS