Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Question
Chapter 5, Problem 1.4E
To determine
Identify the correct answer by solving the amount of governmental fund property tax revenues.
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The City of Troy 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 $2,500,000 to finance governmental activities for the remainder of the fiscal year. On that date, it had $770,000 of cash on
hand and $830,000 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 $1,100,000.
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 6
percent per annum to a local bank. Record the issuance of the tax anticipation notes in…
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…
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.
Chapter 5 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - The term deferred revenues seems out of place in...Ch. 5 - Governments often collect cash or must record...Ch. 5 - Modified accrual basis revenue recognition is...Ch. 5 - (a) Should estimated uncollectible amounts of...Ch. 5 - (a) What are expenditure-driven intergovernmental...Ch. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - During the course of your audit of a city, you...
Ch. 5 - Prob. 11QCh. 5 - Prob. 1.1ECh. 5 - Prob. 1.2ECh. 5 - Prob. 1.3ECh. 5 - Prob. 1.4ECh. 5 - What would the answer be to number 4 if the city...Ch. 5 - A county received 3,000,000 from the state. Of...Ch. 5 - A Special Revenue Fund expenditure of 40,000 was...Ch. 5 - A state received an unrestricted gift of 80,000 of...Ch. 5 - Prob. 1.9ECh. 5 - Prob. 1.10ECh. 5 - Prob. 2.1ECh. 5 - Prob. 2.2ECh. 5 - Prob. 2.3ECh. 5 - Prob. 2.4ECh. 5 - Prob. 2.5ECh. 5 - Prob. 2.6ECh. 5 - Prob. 2.7ECh. 5 - Prob. 2.8ECh. 5 - Prob. 2.9ECh. 5 - Prob. 2.10ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - a. Prepare the general journal entries to record...Ch. 5 - Prob. 6ECh. 5 - Prepare general journal entries to record the...Ch. 5 - Prob. 8ECh. 5 - The City and County of PreVatte received a state...Ch. 5 - Make all required General Fund journal entries for...Ch. 5 - The city of Asher had the following transactions,...Ch. 5 - 1. The following are the estimated revenues for a...Ch. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 1CCh. 5 - Prob. 2C
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