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Property tax adjustments for government-wide financial statements When Oscar City prepared its governmental fund balance sheet for the year ended December 31, 2021, the General Fund column contained the following balances: Property taxes receivable-delinquent Allowance for uncollectible taxes $9,000 $1,000 Deferred inflows of resources -unavallable property taxes $2,500 During 2022, Oscar collected $8,000 of the delinquent taxes and wrote off the balance to the allowance account. Oscar levied real property taxes in the amount of $675,000 to finance its General Fund budget for the calendar year 2022. During the year, Oscar collected $640,000 against this levy. With regard to the remaining $35,000, Oscar expected to collect $23,500 during the first 2 months of calendar year 2023 and $10,000 later in the year between March and August 2023. Oscar wrote off $1,500 as uncollectible. Using the above information, calculate the amount of property tax revenue that will be recognized: a) in Oscar City's governmental fund statements for 2022. b) in Oscar City's government-wide statements for 2022. C) Prepare the journal entries needed to adjust the fund statements so government-wide statements can be prepared. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account Debit Credit Revenues - sales taxes 9,000 Net position 9,000 x To record adustment for 2021 activity. Deferred inflows of resources - sales taxes Revenues - sales taxes To record adjustment for 2022 activity. > > >>

Property tax adjustments for government-wide financial statements When Oscar City prepared its governmental fund balance sheet for the year ended December 31, 2021, the General Fund column contained the following balances: Property taxes receivable-delinquent Allowance for uncollectible taxes $9,000 $1,000 Deferred inflows of resources -unavallable property taxes $2,500 During 2022, Oscar collected $8,000 of the delinquent taxes and wrote off the balance to the allowance account. Oscar levied real property taxes in the amount of $675,000 to finance its General Fund budget for the calendar year 2022. During the year, Oscar collected $640,000 against this levy. With regard to the remaining $35,000, Oscar expected to collect $23,500 during the first 2 months of calendar year 2023 and $10,000 later in the year between March and August 2023. Oscar wrote off $1,500 as uncollectible. Using the above information, calculate the amount of property tax revenue that will be recognized: a) in Oscar City's governmental fund statements for 2022. b) in Oscar City's government-wide statements for 2022. C) Prepare the journal entries needed to adjust the fund statements so government-wide statements can be prepared. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account Debit Credit Revenues - sales taxes 9,000 Net position 9,000 x To record adustment for 2021 activity. Deferred inflows of resources - sales taxes Revenues - sales taxes To record adjustment for 2022 activity. > > >>

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Property tax adjustments for government-wide financial statements When Oscar City prepared its governmental fund balance sheet for the year ended December 31, 2021, the General Fund column contained the following balances: $9,000 Property taxes receivable-delinquent Allowance for uncollectible taxes $1,000 Deferred inflows of resources -unavailable property taxes $2,500 During 2022, Oscar collected $8,000 of the delinquent taxes and wrote off the balance to the allowance account. Oscar levied real property taxes in the amount of $675,000 to finance its General Fund budget for the calendar year 2022. During the year, Oscar collected $640,000 against this levy. With regard to the remaining $35,000, Oscar expected to collect $23,500 during the first 2 months of calendar year 2023 and $10,000 later in the year between March and August 2023. Oscar wrote off $1,500 as uncollectible. Using the above information, calculate the amount of property tax revenue that will be recognized: a) in Oscar City's governmental fund statements for 2022. b) in Oscar City's government-wide statements for 2022. c) Prepare the journal entries needed to adjust the fund statements so government-wide statements can be prepared. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account Debit Credit Revenues - sales taxes 9,000 Net position 9,000 x To record adjustment for 2021 activity. Deferred inflows of resources- sales taxes Revenues - sales taxes To record adjustment for 2022 activity >> >>
Transcribed Image Text:Property tax adjustments for government-wide financial statements When Oscar City prepared its governmental fund balance sheet for the year ended December 31, 2021, the General Fund column contained the following balances: $9,000 Property taxes receivable-delinquent Allowance for uncollectible taxes $1,000 Deferred inflows of resources -unavailable property taxes $2,500 During 2022, Oscar collected $8,000 of the delinquent taxes and wrote off the balance to the allowance account. Oscar levied real property taxes in the amount of $675,000 to finance its General Fund budget for the calendar year 2022. During the year, Oscar collected $640,000 against this levy. With regard to the remaining $35,000, Oscar expected to collect $23,500 during the first 2 months of calendar year 2023 and $10,000 later in the year between March and August 2023. Oscar wrote off $1,500 as uncollectible. Using the above information, calculate the amount of property tax revenue that will be recognized: a) in Oscar City's governmental fund statements for 2022. b) in Oscar City's government-wide statements for 2022. c) Prepare the journal entries needed to adjust the fund statements so government-wide statements can be prepared. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account Debit Credit Revenues - sales taxes 9,000 Net position 9,000 x To record adjustment for 2021 activity. Deferred inflows of resources- sales taxes Revenues - sales taxes To record adjustment for 2022 activity >> >>
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