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 $27,000 Allowance for uncollectible taxes $3,000 Deferred inflows of resources -unavailable property taxes $7,500 During 2022, Oscar collected $24,000 of the delinquent taxes and wrote off the balance to the allowance account. Oscar levied real property taxes in the amount of $2,025,000 to finance its General Fund budget for the calendar year 2022. During the year, Oscar collected $1,920,000 against this levy. With regard to the remaining $105,000, Oscar expected to collect $70,500 during the first 2 months of calendar year 2023 and $30,000 later in the year between March and August 2023. Oscar wrote off $4,500 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. $ 0 b) in Oscar City's government-wide statements for 2022. $ 0 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 To record adjustment for 2021 activity. 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 $27,000 Allowance for uncollectible taxes $3,000 Deferred inflows of resources -unavailable property taxes $7,500 During 2022, Oscar collected $24,000 of the delinquent taxes and wrote off the balance to the allowance account. Oscar levied real property taxes in the amount of $2,025,000 to finance its General Fund budget for the calendar year 2022. During the year, Oscar collected $1,920,000 against this levy. With regard to the remaining $105,000, Oscar expected to collect $70,500 during the first 2 months of calendar year 2023 and $30,000 later in the year between March and August 2023. Oscar wrote off $4,500 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. $ 0 b) in Oscar City's government-wide statements for 2022. $ 0 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 To record adjustment for 2021 activity. To record adjustment for 2022 activity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Property taxes receivable-delinquent
$27,000
Allowance for uncollectible taxes
$3,000
Deferred inflows of resources -unavailable property taxes $7,500
During 2022, Oscar collected $24,000 of the delinquent taxes and wrote off the balance to the
allowance account.
Oscar levied real property taxes in the amount of $2,025,000 to finance its General Fund budget
for the calendar year 2022. During the year, Oscar collected $1,920,000 against this levy. With regard
to the remaining $105,000, Oscar expected to collect $70,500 during the first 2 months of
calendar year 2023 and $30,000 later in the year between March and August 2023. Oscar wrote
off $4,500 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.
$ 0
b) in Oscar City's government-wide statements for 2022.
$ 0
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
To record adjustment for 2021 activity.
To record adjustment for 2022 activity.
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