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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Textbook Question
Chapter 5, Problem 1.5E
What would the answer be to number 4 if the city also collected $100,000 of the prior year’s taxes during the first two months of the current fiscal year and another $53,000 of the prior year’s taxes during the remainder of the current year?
- a. $1,788,000
- b. $1,860,000
- c. $1,841,000
- d. $1,980,000
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1. 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.
As the tax assessor for Indian Creek County you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $700000000. Currently the assessment rate is 35 % and the tax rate is 40 mills. The commission increases the assessment rate to 45 % and the tax rate to 45 mills.
How much property tax in dollars was collected?
How much more tax will be collected under the new rate?
As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $700,000,000. Currently, the assessment rate is 35% and the tax
rate is 30 mills. The county commission increases the assessment rate to 55% and the tax rate to 35 mills.
(a) How much property tax (in $) was collected under the old rates?
$
(b) How much more tax (in $) revenue will be collected under the new rates?
$
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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- As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $300,000,000. Currently, the assessment rate is 35% and the tax rate is 40 mills. The county commission increases the assessment rate to 55% and the tax rate to 45 mills. (a)How much property tax (in $) was collected under the old rates? (b)How much more tax (in $) revenue will be collected under the new rates?arrow_forward12. Calculate the property tax rate required to meet the budgetary demands of the community. Note: When calculating budgetary demands, always round up. (Round your answers to two decimal places.) Community Total AssessedProperty Valuation Total TaxesRequired Property Tax Rate Percent Per $100(in $) Per $1,000(in $) Mills Ellingham $56,000,000 $2,600,000 % $ $arrow_forward2. Crystal City want to complete its operation for the fiscal year 2014 and it will finance its operation by using tax anticipation notes. The notes are paid upon the collection of property taxes. On May 1, 2014, the City estimated that it will require $2,590,000 to finance governmental activities for the remainder of the 2014 fiscal year. On that date it had cash on hand $940,000 and $700,000 of current liabilities. In addition, on the same year the city will collect revenue from interest and penalties, were estimated$ 1,850,000. Required: Ccalculate the estimated amount of tax anticipation financing that will be required for the remainder of FY 2014. Show work in good form.arrow_forward
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