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Property taxes are not necessarily recognized as r...

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Question

Property taxes are not necessarily recognized as revenue in the year collected. The fiscal year of Duchess County ends on December 31. Property taxes are due March 31 of the year in which they are levied and intended to finance. 1. Prepare journal entries (excluding closing entries) in the general fund (modified accrual basis) to record the following property tax? related transactions in which the county engaged in 2012 and 2013. a. On January 15, 2012 the county council levied property taxes of $170 million for the year ending December 31, 2012. Officials estimated that 1% were uncollectible. b. During 2012 it collected $120 million. c. In January and February 2013, prior to preparing its 2012 financial statements, it collected an additional $45 million in 2012 taxes. It reclassified the $5 million of 2012 taxes not yet collected as delinquent. d. In January 2013 the county levied property taxes of $190 million to finance activities of 2013; officials estimated that 1.1% were uncollectible. e. During the remainder of 2013 the county collected $2.5 million more in taxes relating to 2012, $160 million relating to 2013, and $1.9 million (in advance) applicable to 2014. f. In December 2013 it wrote off $1 million of 2012 taxes that it determined was uncollectible. 2. What amount of property tax revenue should the county report in its government-wide (full accrual) statements for 2012 and 2013? Explain.

 

Paper#6800 | Written in 18-Jul-2015

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