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Property Taxes Fairmont County's general fund starts 2023 with a $450.000 balance for property taxes receivable, net of a $360.000 allowance for uncollectible taxes. The county also starts the year with $216.000 in deferred inflows from 2022 taxes receivable, expected to be collected more than 60 days after the start of 2023. The county records the following transactions in 2023, related to property tax billings and collections. 1. Property tax bills totaling $72,000,000 are sent out. The county expects that $900,000 of these bills are uncollectible. 2. Property taxes of $70.443,000 are collected in cash. Of this amount. $495,000 is payment for 2022 taxes and the remainder is for 2023 taxes. 3. The uncollected taxes for 2022 are written off. 4. Of the uncollected 2023 property taxes at year-end, it is estimated that $900,000 will be collected within 60 days of year-end, and $360,000 will be collected later in 2024. Required a. At the beginning of 2023, Fairmont County has $810,000 in 2022 property taxes that have not been collected. How much of this amount was recorded as property tax revenue in 2022? $ 90000 b. How much property tax revenue is recognized in 2023 on collections of 2022 property taxes? $ 495000 c. Prepare the journal entry or entries to record 2023 collection of 2022 property taxes and the write-off of remaining balances. Cash Property taxes receivable Debit Credit 495000 0 0 495000 0 0 0 To record the collection of 2022 property taxes d. Prepare the journal entries to record the 2023 tax levy, collections of 2023 taxes, and necessary year-end adjusting entries. Property taxes receivable Allowance for uncollectible taxes Property tax revenues To record 2023 property tax levy. Cash Property taxes receivable To record collection of 2023 taxes. Credit Debit 72000000 0 900000 о 71100000 70443000 0 ° To adjust ending balances. 0 ° ° ° 0 0

Property Taxes Fairmont County's general fund starts 2023 with a $450.000 balance for property taxes receivable, net of a $360.000 allowance for uncollectible taxes. The county also starts the year with $216.000 in deferred inflows from 2022 taxes receivable, expected to be collected more than 60 days after the start of 2023. The county records the following transactions in 2023, related to property tax billings and collections. 1. Property tax bills totaling $72,000,000 are sent out. The county expects that $900,000 of these bills are uncollectible. 2. Property taxes of $70.443,000 are collected in cash. Of this amount. $495,000 is payment for 2022 taxes and the remainder is for 2023 taxes. 3. The uncollected taxes for 2022 are written off. 4. Of the uncollected 2023 property taxes at year-end, it is estimated that $900,000 will be collected within 60 days of year-end, and $360,000 will be collected later in 2024. Required a. At the beginning of 2023, Fairmont County has $810,000 in 2022 property taxes that have not been collected. How much of this amount was recorded as property tax revenue in 2022? $ 90000 b. How much property tax revenue is recognized in 2023 on collections of 2022 property taxes? $ 495000 c. Prepare the journal entry or entries to record 2023 collection of 2022 property taxes and the write-off of remaining balances. Cash Property taxes receivable Debit Credit 495000 0 0 495000 0 0 0 To record the collection of 2022 property taxes d. Prepare the journal entries to record the 2023 tax levy, collections of 2023 taxes, and necessary year-end adjusting entries. Property taxes receivable Allowance for uncollectible taxes Property tax revenues To record 2023 property tax levy. Cash Property taxes receivable To record collection of 2023 taxes. Credit Debit 72000000 0 900000 о 71100000 70443000 0 ° To adjust ending balances. 0 ° ° ° 0 0

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 Taxes Fairmont County's general fund starts 2023 with a $450.000 balance for property taxes receivable, net of a $360.000 allowance for uncollectible taxes. The county also starts the year with $216.000 in deferred inflows from 2022 taxes receivable, expected to be collected more than 60 days after the start of 2023. The county records the following transactions in 2023, related to property tax billings and collections. 1. Property tax bills totaling $72,000,000 are sent out. The county expects that $900,000 of these bills are uncollectible. 2. Property taxes of $70.443,000 are collected in cash. Of this amount. $495,000 is payment for 2022 taxes and the remainder is for 2023 taxes. 3. The uncollected taxes for 2022 are written off. 4. Of the uncollected 2023 property taxes at year-end, it is estimated that $900,000 will be collected within 60 days of year-end, and $360,000 will be collected later in 2024. Required a. At the beginning of 2023, Fairmont County has $810,000 in 2022 property taxes that have not been collected. How much of this amount was recorded as property tax revenue in 2022? $ 90000 b. How much property tax revenue is recognized in 2023 on collections of 2022 property taxes? $ 495000 c. Prepare the journal entry or entries to record 2023 collection of 2022 property taxes and the write-off of remaining balances. Cash Property taxes receivable Debit Credit 495000 0 0 495000 0 0 0 To record the collection of 2022 property taxes d. Prepare the journal entries to record the 2023 tax levy, collections of 2023 taxes, and necessary year-end adjusting entries. Property taxes receivable Allowance for uncollectible taxes Property tax revenues To record 2023 property tax levy. Cash Property taxes receivable To record collection of 2023 taxes. Credit Debit 72000000 0 900000 о 71100000 70443000 0 ° To adjust ending balances. 0 ° ° ° 0 0
Transcribed Image Text:Property Taxes Fairmont County's general fund starts 2023 with a $450.000 balance for property taxes receivable, net of a $360.000 allowance for uncollectible taxes. The county also starts the year with $216.000 in deferred inflows from 2022 taxes receivable, expected to be collected more than 60 days after the start of 2023. The county records the following transactions in 2023, related to property tax billings and collections. 1. Property tax bills totaling $72,000,000 are sent out. The county expects that $900,000 of these bills are uncollectible. 2. Property taxes of $70.443,000 are collected in cash. Of this amount. $495,000 is payment for 2022 taxes and the remainder is for 2023 taxes. 3. The uncollected taxes for 2022 are written off. 4. Of the uncollected 2023 property taxes at year-end, it is estimated that $900,000 will be collected within 60 days of year-end, and $360,000 will be collected later in 2024. Required a. At the beginning of 2023, Fairmont County has $810,000 in 2022 property taxes that have not been collected. How much of this amount was recorded as property tax revenue in 2022? $ 90000 b. How much property tax revenue is recognized in 2023 on collections of 2022 property taxes? $ 495000 c. Prepare the journal entry or entries to record 2023 collection of 2022 property taxes and the write-off of remaining balances. Cash Property taxes receivable Debit Credit 495000 0 0 495000 0 0 0 To record the collection of 2022 property taxes d. Prepare the journal entries to record the 2023 tax levy, collections of 2023 taxes, and necessary year-end adjusting entries. Property taxes receivable Allowance for uncollectible taxes Property tax revenues To record 2023 property tax levy. Cash Property taxes receivable To record collection of 2023 taxes. Credit Debit 72000000 0 900000 о 71100000 70443000 0 ° To adjust ending balances. 0 ° ° ° 0 0
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