FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Ben City maintains its books and records in a manner that facilitates the preparation of fund financial statements. Prepare all necessary
a. On January 3, 2017 the city council levied property taxes of $2 million to support general government operations, due in two equal installments on June 20 and December 20, 2017. The property taxes were levied to finance the 2017 budget, which had been adopted on November 3, 2016. Historically 2 percent of property taxes are uncollectible.
b. The city collected the following amounts related to property taxes
Delinquent 2016 taxes collected in January 2017 $ 22,000
Delinquent 2016 taxes collected in March 2017 $ 25,000
2017 taxes collected in June 2017 $ 1,080
2017 taxes collected in December 2017 $ 800,000
Delinquent 2017 taxes collected in January 2018 $ 20,000
Delinquent 2017 taxes collected in March 2018 $ 30,000
c. Property taxes due in 2017 but uncollected by the December due date were reclassified as delinquent.
d. $4,000 of 2015 taxes were written off during 2017.
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- Please help mearrow_forward1. The City of Access collects its annual property taxes late in its fiscal year. Consequently, cach 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, 2016, the City estimated that it will require OMR 2,500,000 to finance governmental activities for the remainder of the 2016 fiscal year. On that date, it had OMR 790,000 of cash on hand and OMR 830,000 of current liabilities. Collections for the remainder of FY 2016 from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at OMR 1,100,000. Required: Calculate the estimated amount of tax anticipation financing that will be required for the remainder of FY 2016. Show work in good form.arrow_forwardThe City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. Deferred inflows of resources—property taxes of $51,200 at the end of the previous fiscal year were recognized as property tax revenue in the current year’s Statement of Revenues, Expenditures, and Changes in Fund Balance. The City levied property taxes for the current fiscal year in the amount of $10,000,000. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $200,000 is thought to be uncollectible, $349,000 would likely be collected during the 60-day period after the end of the fiscal year, and $53,800 would be collected after that time. The City had recognized the maximum of property taxes allowable under modified accrual accounting. In addition to the expenditures recognized under modified accrual accounting, the City computed that $29,000 should be…arrow_forward
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