For fiscal 2022, Lake City levied a property tax of $270,000. The city estimated that 4% of the tax will not be collected. By fiscal year end, the city, based on the cash already collected, declares the uncollected amount of $10,200 as delinquent. Of the delinquent taxes, $5,700 is estimated to be collected within 60 days of year end and the rest is uncollectible. In fiscal 2023, Lake City collects $4,800 of the delinquent taxes and writes off the remaining delinquent taxes.
Q: of P2,000,000 on Ju
A: Step 1 The total amount of expense that should be reported in the interim income statement ended on…
Q: Bit Company owns an office building and normally charges tenants Php3,000 per square meter per year…
A: As per accrued basis of accounting Income is recognized as and when earned and expense is to be…
Q: At the end of April, Meyer Company had a $7,890 balance in its cash account, while its bank…
A: There are two type of cash balances exist in every business. These are cash balance as per cashbook…
Q: Sunland Company self-insures its property for fire and storm damage. If the company were to obtain…
A: Sawyer Company insures its assets against fire and storm damage. Sawyer Company's total expenditure…
Q: Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals;…
A: The following formulas are used to calculate the required details:- (a) Total Income = Annua Income…
Q: What amount should be included in current liabilities on Dec 31, 2021 in relation to the lease? *…
A: The question is related to Accounting for Lease. The question is related to Finance lease. The lease…
Q: unt to nount
A: The total amount of expense that should be reported in the interim income statement ended on 30…
Q: allaloo Collaborators, Inc. has been considering several capital investment proposals for the year…
A: The Internal Revenue Service describes depreciation as an tax deduction that companies can use to…
Q: Turner Company owns 10% of the outstanding shares of ICA Company. Turner has a choice to measure…
A: There are different valuation methods to measure investments i) Fair Value through Profit/ Loss ii)…
Q: Complete the amortization table below of a loan of P 100,000 payable semi-annually after 5 years at…
A: Amortization schedule is the one that shows the periodic money that is to be paid on monthly or…
Q: a Insurance $3020 able Contribution $700 eria Plan $5560 Directions in Popup Window Email with…
A: A charitable contribution is a gift or donation made to a recognised organization with a specific…
Q: Sebastian purchases two pieces of equipment for $100,000. Appraisals of the equipment indicate that…
A: Equipment is the resource owned by an entity which can be used for the purpose of doing usual…
Q: Problem 14-2 (Algo) Effective interest; financial statement effects [LO14-2) On January 1, 2021,…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired…
A: interest acquired several years ago = 1,000,000$ *10 *6% = 600,000$ Therefore it is 600,000$ on 13…
Q: Caribbean Kayaks (CK) Maritza (which means "star of the sea") Joseph is preparing the 2022 budget…
A: Direct Material Budget helps the enterprise to estimate the requirements of the total quantity of…
Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…
A: The operating income refers to the difference between revenues and operating costs. The operating…
Q: 4. On November 1, 2021, Agar-Agar Corporation had a division that met the criteria for…
A: Discontinue Division: A company's discontinued operations are those aspects of its business that…
Q: Fortune Company had beginning raw materials inventory of $8,200. During the period, the company…
A: Raw Material used = Beginning Raw Material + Purchased - Ending Raw material
Q: Company had ary 1, Vilma c n method of P pany had esti er 31, 2020 wi y had fixed as f P2,000,000 c
A: The total amount of expense that should be reported in the interim income statement ended on 30…
Q: PROBLEM 7-20 Evaluating the Profitability of Services LO7-2, LO7-3, L07-4, L07-5 Gallatin Carpet…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: In 2021, Segment X of Special Company had sales of P5,000,000 (represents 30% of the total company’s…
A: Sales - traceable cost = gross profit P5000,000 - P3200,000 P1800000
Q: Which of the following statements best describes the purpose of Oa. To inform taxpayers of their…
A: A bill which describes the rights of tax payer regarding tax is called bill of rights.
Q: eriodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item…
A: LIFO method - Last in first out. It assumes that last inventory are sold first FIFO - First on…
Q: Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $405.405 for…
A: The lump sum purchase price of plant assets can be apportioned to various assets on the basis of…
Q: 1. Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the…
A: Accrued liability refers to the amount of expense which is incurred by the company but in against…
Q: What total amount of expenses should be reported in the income statement for the 2nd quarter of…
A: Expenses means the amount spent on running the business. It will be shown in income statement and…
Q: Choose one specialized industry and identify one specific financial reporting standards or distinct…
A: Financial reporting standards are the set of accounting rules and policies within the framework of…
Q: producers of carbon emissions such as the oil and gas companies that extract the fossil fuels from…
A: carbon tax are imposed on the company and industry in order to reduce the output of greenhouse gases…
Q: The financial statements for Highland Corporation included the following selected information:…
A: The additional paid in capital is calculated as total money raised from share issuance less value of…
Q: 5. Bilo-Bilo Company provided the following data for the current year: Segment Revenue Profit (Loss)…
A: As per IFRS, a segment is said to be reporting segment if it constitutes at least 10 % of the assets…
Q: Condensed Balance Sheets December 31 (In millions) Assets 2014 20 Assets 1,902.0 sets 2,952.8 ssets…
A:
Q: 50,000 b. 600,000 c. 625,00
A: Depreciation refers to the deduction or reduction in the asset value over the time period as it…
Q: d. Inappropriate Assignment of Labor Costs to Inventory A company having difficulty meeting profit…
A: Analytical procedures are the methods used by the auditors to find out the plausible differences…
Q: E9.6 (LO 2), AP Rottino Company purchased a new machine on October 1, 2022, at a cost of $150,000.…
A: Depreciation is a reduction of the historical cost of a fixed asset in an accounting practice until…
Q: Importance and use of bookkeeping?
A: Solution:- The following importance of book keeping as follows under:- Bookkeeping is very much…
Q: Jamela Company acquired a welding machine with an invoice price of P5,000,000 subject to a cash…
A: As per IAS 16 , Property plant and equipment, Cost of property plant and equipment consists of…
Q: At the beginning of the year, Era Sdn. Bhd. estimated the following costs: Overhead=RM 450,000…
A: Predetermined overhead rate for the year = Estimated Overhead / Estimated Direct Labor Cost Overhead…
Q: 2 Cierra, Inc. manufactures computer chips. Currently, the costs per unit are as follows: Direct…
A: In making or buying decision making, the cheapest option should be accepted.
Q: 12. Calculate the property tax rate required to meet the budgetary demands of the community. Note:…
A: Property Tax is calculated on the basis of the Total Assessed Value of the property. The Property…
Q: Metro Computer Company had the following balances and transactions during 2014. Beginning inventory…
A: As per LIFO method, the ending inventory would consist of items from the first purchases as the…
Q: Cathymae Company acquired two items of machinery as follows: • On January 1, 2020, Cathymae Company…
A: Cost of machines refers to the amount of money at which the machine has been acquired.
Q: 1) Guerlane Fragrance Corporation has a perfume division, Essense, and a cologne division, Karisma.…
A: The following information Given in the question: Given Return on Investment =20% Average Operating…
Q: Income statemepts for Rundle Company for Year 3 and Year 4 follow. RUNDLE COMPANY Income Statementa…
A: Comparative financial statements are used to compare two or more financial statements. These are the…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: A variance is a difference between being an actual measured output and a basis, such as a budgeted…
Q: A local picnic table manufacturer has budgeted these overhead costs: Purchasing $80,000 Handling…
A: The overhead rate is calculated as total cost divided by the activity usage units.
Q: On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The plant was…
A: The Specific interest method is used to identify borrowings or sections of borrowings that are…
Q: he following information concerns production in the Forging Department for November. All direct…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September 1,…
A: As per IFRS 5 Non current assets held for sale and discontinued operation The revaluation of asset…
Q: Success Berhad, with a registered capital of 50,000,000 ordinary shares of RM1 each, is open for…
A: 1RM = 100 sen Application = 20 sen = 0.2RM Allotment = 40 sen = 0.4RM First Call = 30 sen = 0.3RM…
Q: On January 10, 2021, Halo-Halo Enterprises had an equipment with a carrying amount of P2,000,000. On…
A: The question is related to Non-Current Assets held for sale. The Non-Current Assets held for sale…
- For fiscal 2022, Lake City levied a property tax of $270,000. The city estimated that 4% of the tax will not be collected. By fiscal year end, the city, based on the cash already collected, declares the uncollected amount of $10,200 as delinquent. Of the delinquent taxes, $5,700 is estimated to be collected within 60 days of year end and the rest is uncollectible. In fiscal 2023, Lake City collects $4,800 of the delinquent taxes and writes off the remaining delinquent taxes.
- Prepare the
journal entries to record all the property tax transactions in fiscal 2022. - Determine the amount of tax revenues reported for fiscal 2022.
- Prepare the journal entries to record the collection and write-off of delinquent taxes in fiscal 2023.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On January 1, 2019, a city recorded General Fund property tax revenues of $750,000 but made no provision for uncollectible receivables or tax refunds. During the year, it collected property taxes of $720,000, wrote off $4,000 as uncollectible, and made tax refunds of $3,000. At year-end, the city finance director concluded that $10,000 of the delinquent taxes would be collected in January and February of 2020, $12,000 would be collected later in 2020, and $1,000 would need to be written off as uncollectible. How much should the city report as property tax revenue in its General Fund financial statements for the year 2019? a.713,000 b.730,000 c.720,000 d.742,000For the Fiscal Year 2017, Twin City levied $60 million in property Taxes. Its past experience dictates that 10% of taxes will not be collected. A. Required: Prepare the general Journal entries to record the property levy using the following account titles: Property Taxes Receivable, Estimated Property Taxes Uncollectible and Revenue from Property Taxes (Control). B. On June 30, 2017 the City had collected $30 million of property taxes levied. Required: Prepare General Journal entries to record the receipt of this amount. c. On November 30, the City collected $25 million of property taxes levied. Required: Prepare the general journal entries to record the receipt of the taxes. D. What adjustment should the City make about the estimate of uncollectible account at the year end? E. How much is the delinquent of property taxes receivable at the end of the year? Show computation.The following transactions relate to Newport City’s special revenue fund. In 2020, Newport City created a special revenue fund to help fund the 911 emergency call center. The center is to be funded through a legally restricted tax on cellular phones. No budget is recorded. During the first year of operations, revenues from the newly imposed tax totaled $530,000. Of this amount, $477,000 has been received in cash and the remainder will be received within 60 days of the end of the fiscal year. Expenditures (salaries) incurred through the operation of the 911 emergency call center totaled $469,000. Of this amount, $438,515 was paid before year-end. During the year the state government awarded Newport City a grant to reimburse the City’s costs (not to exceed $180,000) for the purpose of training new 911 operators. During the year, the City paid $171,000 (not reflected in the expenditures above) to train new operators for the 911 emergency call center and billed the state government.…
- The following transactions relate to Newport City’s special revenue fund. In 2020, Newport City created a special revenue fund to help fund the 911 emergency call center. The center is to be funded through a legally restricted tax on cellular phones. No budget is recorded. During the first year of operations, revenues from the newly imposed tax totaled $495,000. Of this amount, $445,500 has been received in cash and the remainder will be received within 60 days of the end of the fiscal year. Expenditures (salaries) incurred through the operation of the 911 emergency call center totaled $441,000. Of this amount, $412,335 was paid before year-end. During the year the state government awarded Newport City a grant to reimburse the City’s costs (not to exceed $159,000) for the purpose of training new 911 operators. During the year, the City paid $151,050 (not reflected in the expenditures above) to train new operators for the 911 emergency call center and billed the state government.…On July 1, 2020, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $4,400,000. The county estimated that 2 percent of the taxes levied would be uncollectible. As of April 30, 2021, the due date for all property taxes, the county had collected $4,090,000 in taxes. During the current fiscal year, the county collected $54,000 in delinquent taxes and $5,000 in interest and penalties on the delinquent taxes. The county imposed penalties and interest in the amount of $14,700 but only expects to collect $12,900 of that amount. At the end of the fiscal year (June 30, 2021), uncollected taxes, interest, and penalties are reclassified. They are not expected to be collected within the first 60 days for the following fiscal year. Required Record entries for the above transactions as stated in the individual statements below, and post corresponding information into the Revenues ledger as appropriate. Prepare journal entries to record the tax levy on July 1,…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.
- In 2020 Metro City received $250,000 of tax underpayments and paid $80,000 in refunds based on taxpayers filing their 2019 returns in 2020. In addition, in 2020 the city received $700,000 in withholding and estimated tax payments for 2020. The city conducted audits in 2019 and assessed and billed tax deficiencies of $30,000 of which it collected $25,000 in 2019 and $5,000 in 2020. The city conducted audits in 2020 and assessed and billed tax deficiencies of $40,000 of which it collected $36,000 in 2020. Required; Calculate the amount of Income Tax Revenue that Metro City should report on its 2020 Fund Financial Statements.During the current year, the City of Plattsburgh recorded the following transactions related to its property taxes: Levied property taxes of $6,590,000, of which 2 percent is estimated to be uncollectible. Collected current property taxes amounting to $5,973,000. Collected $52,900 in delinquent taxes and $4,800 in interest and penalties on the delinquent taxes. These amounts had been recorded as Deferred Inflows of Resources in the prior year. Imposed penalties and interest in the amount of $7,400 but only expects to collect $6,200 of that amount. Reclassified uncollected taxes and interest and penalties as delinquent. These amounts are not expected to be collected within the first 60 days of the following fiscal year. Required Prepare journal entries to record the property tax transactions in the General Fund. Prepare journal entries to record the property tax transactions in the governmental activities journal. Determine the amount of property tax revenue recognized during the…Summer City levies $600,000 of property taxes for its current fiscal year. Three percent of the tax levy is expected to be uncollectible. The city collects $520,000 of its taxes during the year and another $50,000 during the first two months of the following year. In addition, the city collected $10,000 of prior year taxes during the first two months of the current fiscal year and another $3,000 during the remainder of the current fiscal year. What amount of property tax revenues should the city report in the governmental fund financial statements for the current fiscal year? $582,000. $573,000. $570,000. $520,000.
- The following transactions relate to Newport City's special revenue Fund. 1. In 2020, Newport City created a special revenue fund to help the 911 emergency call center. the center is to be funded through a legally restricrted tax on cellular phones. No budget is recorded. 2. During the first year of operations, revenues from the newly imposed tax totaled $489,000. Of this amount $444,000 has been received in cash and the remainder will be received within 60 days of the end of the fiscal year.. 3. expenditures (salaries) incurred through the operation of the 911 emergency call center totaled $449,000. Of this amount $422,000 was paid before year-end. 4. During the year the state government awarded Newport City a grantto reimburse the city's cost ( not to exceed $150,000) for the pupose of training new 911 operators. During the year, the city paid $146,500 ( not relfected inthe expenditures above) to trian new operators for the 911 emergancy call center and billed the state government.…The City of Iroy collects its annual property taxes late in its fiscal year. Consequently, each 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, the city estimated that it will require $1,800,000 to finance governmental activities for the remainder of the fiscal year. On that date, it had $700,000 of cash on hand and $760,000 of current liabilities. Collections for the remainder of the year from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at $750,000. Required a. Calculate the estimated amount of tax anticipation financing that will be required for the remainder of the current fiscal year. b. Assume that on April 2, the City of Troy borrowed the amount calculated in part a by signing tax anticipation notes bearing 7 percent per annum to a local bank. Record the issuance of the tax anticipation notes in the…During the current year, the City of Plattsburgh recorded the following transactions related to its property taxes: 1. Levied property taxes of $6,650,000, of which 2 percent is estimated to be uncollectible. 2. Collected current property taxes amounting to $6,015,000. 3. Collected $57,000 in delinquent taxes and $4,800 in interest and penalties on the delinquent taxes. These amounts had been recorded as Deferred Inflows of Resources in the prior year. 4. Imposed penalties and interest in the amount of $7,200 but only expects to collect $6,200 of that amount. 5. Reclassified uncollected taxes and interest and penalties as delinquent. These amounts are not expected to be collected within the first 60 days of the following fiscal year. Required a. Prepare journal entries to record the property tax transactions in the General Fund. b. Prepare journal entries to record the property tax transactions in the governmental activities journal. c. Determine the amount of property tax revenue…