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

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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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.
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8) OMR 2,000,000 of special assessments was levied on property owners in a special benefit district, payable in 10 equal annual installments. What are the journal entry of debt service fund?
Short-term borrowing and investing transactions A local government operates on a calendar-year basis. The following transactions and events occurred during calendar year 2021. 1. On February 1, 2021, borrowed $800,000 on tax anticipation notes (TANS). The TANS will be repaid with 0.8 percent interest on January 31, 2022. 2. Interest on the TANS was accrued through December 31, 2021. 3. Invested $200,000 in a certificate of deposit (CD) on April 1, 2021. The CD, which pays interest of 0.6 percent, will mature on September 30, 2021. 4. The CD matured on September 30, 2021. Prepare the appropriate journal entries. Round all amounts to the nearest dollar. Enter 0 or leave the field blank if no entry is required. If an entry affects more than one debit or credit account, enter the accounts in alphabetic order. Account Debit Credit To record amount borrowed. To record interest on TANS. To record investment in CD. To record redemption of CD. > > > > > >
City of Smithville CH 4 Fiscal year 2023. Questions 8-13
(Deferred Taxes) The following information is for the governmental funds (total) of Bell County for 20X6. Assume the deferred tax revenues meet the earnings criteria. Deferred Tax Revenues (January 1) .......................... $ 800,000 Deferred Tax Revenues (December 31) ....................... 1,300,000 Tax Revenues (20X6) ...................................... 8,000,000 Explain the worksheet adjustments to derive the tax revenues to be reported for governmental activities in the government-wide financial statements.
At the beginning of 2020, a town reports the following balances, related to 2019 taxes: Property taxes receivable $ 300,000 Allowance for uncollectible taxes (160,000) Property taxes receivable, net $ 140,000 Cash collected in 2020 from property owners for 2019 taxes was $155,000. The remaining uncollected taxes were written off. Property tax bills were sent out at the beginning of 2020 in the amount of $4,000,000, of which $300,000 were estimated to be uncollectible. Cash collected from property owners for 2020 taxes was $3,650,000. Of the $350,000 uncollected at year-end, $100,000 in taxes are expected to be collected in the next 60 days, and $20,000 are expected to be collected more than 60 days from year-end. The remainder are considered uncollectible. Prepare the journal entries to record the above information in the general fund accounts
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.
The Village of Hawksville issued $4,000,000 in 5 percent general obligations, tax supported bonds on July 1, 2019, at 102. A fiscal agent is not used.Resources for principal and interest payments are to come from the General Fun. Interest pyments dates are December 31 and June 30. The first of 20 annual principal payments is to be made June 30, 2020. Hawksbill has a calander fiscal year. 1. A capital projects fund transferred the premium ( in the amountof $40,000) to the debt service fund. 2. On December 31, 2019 funds in the amount of $100,000 were received from the General Fund and the first interest payment was made. 3. The books were closed for 2019. 4. On June30,2020 funds in the amount of $220,000 were received from the General Fund, and the second interest payment ($100,00) was madealong with the first pricipal payment ($200,000) 5. On December 31,2020 funds inthe amount of $95,000 were received from the General Fund and the third interest payment was made (also in the amount of…
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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…
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