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 9Q
To determine
Explain whether the statement made by the controller and the auditor is agreeable or not and explain the manner of reporting deferred revenue (if any).
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At the beginning of the fiscal year 20X1-20X2, a governmental unit recorded
property tax revenues of $600,000. By fiscal year end (June 30, 20X2), taxpayers
had paid a total of $570,000. The remaining $30,000 is considered delinquent.
Based upon previous experience, the governmental unit expects that it will collect
the delinquent taxes in fiscal year 20X2-20X3 in the following manner: July and
August, $15,000; September and October, $10,000; and November, $5,000. How
much should the governmental unit normally report as property tax revenue for fiscal
year 20X1-20X2?
$600,000.
$595,000.
$585,000.
$570,000.
The fiscal year of Duchess County ends on December 31. Property taxes are due on March 31 of the year in which they are levied.
Prepare journal entries (excluding budgetary and closing entries) to record the following property tax‐related transactions in which the county engaged in 20X1 and 20X2.
On January 15, 20X1, the county council levied property taxes of $170 million for the year ending December 31, 20X1. Officials estimated that 1 percent would be uncollectible.
During 20X1, it collected $120 million.
In January and February 20X2, prior to preparing its 20X1 financial statements, it collected an additional $45 million in 20X1 taxes. It reclassified as delinquent the $5 million of 20X1 taxes not yet collected.
In January 20X2, the county levied property taxes of $190 million, of which officials estimated 1.1 percent would be uncollectible.
During the remainder of 20X2, the county collected $2.5 million more in taxes relating to 20X1, $160 million relating to 20X2, and $1.9…
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…
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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