Description of this paper

Assuming that the City maintains the books and rec...

Description

Solution


Question

Assuming that the City maintains the books and record in a manner that facilitates the preparation of the fund financial statements, prepare all necessary 2003 journal entries to record the following events related to the revenues of a city. The City has a 12/31 fiscal year-end. The city has adopted the 60-days rule for all revenue recognition for which it is appropriate. a) On January 3, the City Council levied property taxes of $1 million to support general government operations, due in two equal installments with due dates of June 20 and December 20. The property taxes were levied to finance the 2008 budget which had been adopted on November 3, 2007. Historically 2% of property taxes are uncollectible. b) The City collected the following amounts related to property taxes Delinquent 2007 taxes collected in January, 2008 $11,000 Delinquent 2007 taxes collected in March, 2008 $12,500 2008 taxes collected in June, 2008 $540,000 2008 taxes collected in December, 2008 $400,000 Delinquent 2008 taxes collected in January, 2009 $10,000 Delinquent 2008 taxes collected in March, 2009 $15,000 c) Delinquent 2008 property taxes were reclassified as delinquent. d) $2,000 of 2006 taxes was written off.

 

Paper#6798 | Written in 18-Jul-2015

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