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1. The city levied $300,000 of special property taxes that are restricted by statue and by bond indentures for the servicing of general obligation bonds. One percent (1%) of the taxes is expected to be uncollectible. 2. The city collected $246,800 of property taxes before the due date for taxes. The remainder of the taxes receivable become delinquent. 3. The city levied interest and penalties of $6,650 on the overdue taxes receivable. $1,370 of the interest and penalties is expected to prove uncollectible. The interest and penalties on taxes are restricted for debt service as well. 4. The city collected $41,040 of delinquent taxes and $5,130 of interest and penalties receivable. 5. The city wrote off uncollectible taxes receivable of $4,370 and related interest and penalties of $1,370. 6. Investments that cost $1,000,000 were sold for $1,050,000. Investment income is not restricted, but is retained in the fund to be used for debt service if needed. 7. The city paid interest of $800,000 on bonds payable and retired $500,000 of principal. 8. $45,050 of the Dec. 31, 20X4, balance of delinquent taxes receivable and $6,950 of the Dec. 31, 20X4, balance of interest and penalties receivable are not expected to be collected within the first 60 days of 20X5. (Jan. 1, 20X4, delinquent taxes receivable balance included $43,100 of taxes that were collected after the first 60 days of 20X4, and the Jan. 1, 20X4, interest and penalties receivable balance included $6,900 of interest and penalties on taxes that were collected after the first 60 days of 20X4. The fair valu of inves Luas 5254.000

1. The city levied $300,000 of special property taxes that are restricted by statue and by bond indentures for the servicing of general obligation bonds. One percent (1%) of the taxes is expected to be uncollectible. 2. The city collected $246,800 of property taxes before the due date for taxes. The remainder of the taxes receivable become delinquent. 3. The city levied interest and penalties of $6,650 on the overdue taxes receivable. $1,370 of the interest and penalties is expected to prove uncollectible. The interest and penalties on taxes are restricted for debt service as well. 4. The city collected $41,040 of delinquent taxes and $5,130 of interest and penalties receivable. 5. The city wrote off uncollectible taxes receivable of $4,370 and related interest and penalties of $1,370. 6. Investments that cost $1,000,000 were sold for $1,050,000. Investment income is not restricted, but is retained in the fund to be used for debt service if needed. 7. The city paid interest of $800,000 on bonds payable and retired $500,000 of principal. 8. $45,050 of the Dec. 31, 20X4, balance of delinquent taxes receivable and $6,950 of the Dec. 31, 20X4, balance of interest and penalties receivable are not expected to be collected within the first 60 days of 20X5. (Jan. 1, 20X4, delinquent taxes receivable balance included $43,100 of taxes that were collected after the first 60 days of 20X4, and the Jan. 1, 20X4, interest and penalties receivable balance included $6,900 of interest and penalties on taxes that were collected after the first 60 days of 20X4. The fair valu of inves Luas 5254.000

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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Provide journal entries for each transaction: 1. The city levied $300,000 of special property taxes that are restricted by statue and by bond indentures for the servicing of general obligation bonds. One percent (1%) of the taxes is expected to be uncollectible. 2. The city collected $246,800 of property taxes before the due date for taxes. The remainder of the taxes receivable become delinquent. 3. The city levied interest and penalties of $6,650 on the overdue taxes receivable. $1,370 of the interest and penalties is expected to prove uncollectible. The interest and penalties on taxes are restricted for debt service as well. 4. The city collected $41,040 of delinquent taxes and $5,130 of interest and penalties receivable. 5. The city wrote off uncollectible taxes receivable of $4,370 and related interest and penalties of $1,370. 6. Investments that cost $1,000,000 were sold for $1,050,000. Investment income is not restricted, but is retained in the fund to be used for debt service if needed. 7. The city paid interest of $800,000 on bonds payable and retired $500,000 of principal. 8. $45,050 of the Dec. 31, 20X4, balance of delinquent taxes receivable and $6,950 of the Dec. 31, 20X4, balance of interest and penalties receivable are not expected to be collected within the first 60 days of 20X5. (Jan. 1, 20X4, delinquent taxes receivable balance included $43,100 of taxes that were collected after the first 60 days of 20X4, and the Jan. 1, 20X4, interest and penalties receivable balance included $6,900 of interest and penalties on taxes that were collected after the first 60 days of 20X4. 9. The fair value of investments at year-end was $254,000.
Transcribed Image Text:Provide journal entries for each transaction: 1. The city levied $300,000 of special property taxes that are restricted by statue and by bond indentures for the servicing of general obligation bonds. One percent (1%) of the taxes is expected to be uncollectible. 2. The city collected $246,800 of property taxes before the due date for taxes. The remainder of the taxes receivable become delinquent. 3. The city levied interest and penalties of $6,650 on the overdue taxes receivable. $1,370 of the interest and penalties is expected to prove uncollectible. The interest and penalties on taxes are restricted for debt service as well. 4. The city collected $41,040 of delinquent taxes and $5,130 of interest and penalties receivable. 5. The city wrote off uncollectible taxes receivable of $4,370 and related interest and penalties of $1,370. 6. Investments that cost $1,000,000 were sold for $1,050,000. Investment income is not restricted, but is retained in the fund to be used for debt service if needed. 7. The city paid interest of $800,000 on bonds payable and retired $500,000 of principal. 8. $45,050 of the Dec. 31, 20X4, balance of delinquent taxes receivable and $6,950 of the Dec. 31, 20X4, balance of interest and penalties receivable are not expected to be collected within the first 60 days of 20X5. (Jan. 1, 20X4, delinquent taxes receivable balance included $43,100 of taxes that were collected after the first 60 days of 20X4, and the Jan. 1, 20X4, interest and penalties receivable balance included $6,900 of interest and penalties on taxes that were collected after the first 60 days of 20X4. 9. The fair value of investments at year-end was $254,000.
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