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1. I. Prepare entries in general journal form to r...

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1. I. Prepare entries in general journal form to record the following transactions for fiscal year 2014. Use modified accrual accounting. (a) The legal budget for the year provided for $5,000,000 of estimated revenues and $4,960,000 appropriations. (b) Assume there are $210,000 of purchase orders outstanding at the end of last year and that these will be honored in the current year. (c) Property taxes were levied in the amount of $3,300,000. It is estimated that 2 percent of the taxes will never be collected. (d) Purchase orders were issued for equipment and supplies in the amount of $4,000,000. (e) Supplies, relating to all of the prior year purchase orders, were received along with invoices amounting to $207,000. (f) Collections of current property taxes amounted to $2,950,000. The uncollected taxes recorded as delinquent. (g) It was estimated that $210,000 in property taxes would be collected in the first 60 days of 2015 and that $160,000 would be collected in later periods. II. What amount of property tax revenues should the government report in the General Fund financial statements for the current fiscal year?

 

Paper#11155 | Written in 18-Jul-2015

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