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. 10/1/2019Fiscal 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. 1/1/2020Tax and fiscal year 2020 begins. Cash collections related to property taxes are as follows: 2/15/2020related to 2019 property taxes$40,000 5/30/2020related to 2019 property taxes$10,000 11/10/2020related to 2020 property taxes$590,000 1/30/2021related to 2020 property taxes$75,000 4/15/2021related to 2020 property taxes$95,000 Required: Prepare the appropriate journal entries for all the dates listed below. DateAccountDebitCredit 10/1/2019 1/1/2020 2/15/2020 5/30/2020 11/10/2020 12/31/2020 1/30/2021 4/15/2021

Journal entries in the books of -------- City Date 2020 General Journal Post Ref Dr.…

Answered: roperty Tax Revenue: A city that has a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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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	$75,000
4/15/2021	related to 2020 property taxes	$95,000

Required: Prepare the appropriate journal entries for all the dates listed below.

Date	Account	Debit	Credit
10/1/2019




1/1/2020




2/15/2020




5/30/2020




11/10/2020




12/31/2020




1/30/2021




4/15/2021