Calculate property taxes collected ratio The statistical section of the city of Tallahassee's CAFR for the fiscal year ended September 30, 2019 contains several schedules regarding property tax collections. Assume one schedule shows that a) the total property taxes levied for the year was $68,787 thousand and (b) the amount of taxes collected in 2019 against that levy was $65,786 thousand. Another schedule contains a statement indicating that Florida statutes permit discounts of up to 4 percent for early payment of taxes; the schedule indicates that Tallahassee granted discounts and made adjustments in the amount of $2,466 thousand during 2019. a) Calculate the city of Tallahassee's property tax collection rate based on the figures included in the schedule described in the statistical section of the CAFR. Round the percentage to two decimals. 0 96 b) Using the rule of thumb suggested in the text, would the tax collection rate be considered reasonable, too high, or too low? ◆ c) Calculate the city of Tallahassee's property tax collection rate after adjusting for the early payment discounts given in 2019. Round the percentage to two decimals. 0

Calculate property taxes collected ratio The statistical section of the city of Tallahassee's CAFR for the fiscal year ended September 30, 2019 contains several schedules regarding property tax collections. Assume one schedule shows that a) the total property taxes levied for the year was $68,787 thousand and (b) the amount of taxes collected in 2019 against that levy was $65,786 thousand. Another schedule contains a statement indicating that Florida statutes permit discounts of up to 4 percent for early payment of taxes; the schedule indicates that Tallahassee granted discounts and made adjustments in the amount of $2,466 thousand during 2019. a) Calculate the city of Tallahassee's property tax collection rate based on the figures included in the schedule described in the statistical section of the CAFR. Round the percentage to two decimals. 0 96 b) Using the rule of thumb suggested in the text, would the tax collection rate be considered reasonable, too high, or too low? ◆ c) Calculate the city of Tallahassee's property tax collection rate after adjusting for the early payment discounts given in 2019. Round the percentage to two decimals. 0

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 11E

See similar textbooks

Similar questions

Property Taxes Family Practice Associates has an estimated property tax liability of 7,200 assessed as of January 1,2019, for the year May 1, 2019, to April 30, 2020. The property tax is paid on September 1, 2019. The property tax becomes a lien against the property on May 1. Required: 1. Prepare the necessary monthly journal entries to record the preceding information for the period from May 1 to September 30, 2019 (assuming actual taxes are the same as estimated). 2. What would be the amount of the liability on December 31, 2019?
The following information concerns tax revenues for the city of Fairfield. The balances concerning property taxes on January 1, 2018, were as follows:Delinquent property taxes receivable . . . . . . . . . . . . . . . . . . . . . . . . $105,000Allowance for uncollectible delinquent taxes . . . . . . . . . . . . . . . . . . (30,000)Tax liens receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000Allowance for uncollectible tax liens . . . . . . . . . . . . . . . . . . . . . . . . . (23,000)Prepare entries in the general fund for the following 2018 events:Jan. Since current property taxes would not be collected for several months, $275,000 was borrowed using tax anticipation notes.Feb. Tax liens of $10,000 were collected; in addition, $2,000 of interest was collected that had not been accrued. The balance of tax liens was settled by receiving $13,000 for the property subject to the tax liens.Apr. Collections on delinquent property taxes were $100,000,…
For the Fiscal Year 2017, Twin City levied $60 million in property Taxes. Its past experience dictates that 10% of taxes will not be collected. A. Required: Prepare the general Journal entries to record the property levy using the following account titles: Property Taxes Receivable, Estimated Property Taxes Uncollectible and Revenue from Property Taxes (Control). B. On June 30, 2017 the City had collected $30 million of property taxes levied. Required: Prepare General Journal entries to record the receipt of this amount. c. On November 30, the City collected $25 million of property taxes levied. Required: Prepare the general journal entries to record the receipt of the taxes. D. What adjustment should the City make about the estimate of uncollectible account at the year end? E. How much is the delinquent of property taxes receivable at the end of the year? Show computation.
Revenue accruals and other adjustmentsMonroe County is preparing financial statements for the year ended December 31, 2022. Based on the following facts, prepare journal entries to record the appropriate year-end revenue accruals and other adjustments in the county’s General Fund.1. At year-end, Monroe’s delinquent property tax receivables were $66,000. The county estimated that $38,500 of those delinquencies would be collected by March 1, 2023, and the balance would trickle in during the rest of 2023. 2. Sales taxes are collected by the state on behalf of the county. On January 20, 2023, the state advised the county that (a) it would send the county a check for $165,000 before February 29, 2023, for taxes collected by merchants for the fourth quarter of 2022; and (b) based on past experience, it anticipated sending an additional check for approximately $49,500 during March or April for taxes received from late filers. Monroe's policy regarding sales taxes is to consider as "available"…
The town of quincy's fiscal year ends on June 30. The following data relate to the property tax levy for the fiscal year ended June 30., 2020. Prepare jounal entries for each of the dates indictaed. a. The balance in Deferres Inflows _ property taxes was $48,000 at the end of the previous year. This was recognized as revenue in the current year in a reversing jounal entry. B. It is, after all, c. October 31, $4,200,000 in property taxes were collected. d. December 31, $3,700,000 in additional property taxes were collected. e. receivables totaling $8,700 wer deemed to be uncollectible and written off. f. On June 30, $37,000 was moved from revenue control to deferred inlfows, because it was not expected to be collected within 60 days.
Other accrued liabilities—real estate taxes Glennelle’s Boutique Inc. operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2019 are issued in May 2020 and are payable in July 2020. Required: Explain how the amount of tax expense for calendar 2019 and the amount of taxes payable (if any) at December 31, 2019, can be determined. Use the horizontal model (or write the journal entry) to show the effect of accruing 2019 taxes of $44,800 at December 31, 2019. Assume that the actual tax bill, received in May 2020, was for $47,600. Use the horizontal model (or write the journal entry) to show the effects of the appropriate adjustment to the amount previously accrued. page 263 Determine the income statement and balance sheet effects of not accruing 2019 taxes at December 31, 2019 (assuming that taxes in b are not accrued).
On July 1, 2020, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $4,400,000. The county estimated that 2 percent of the taxes levied would be uncollectible. As of April 30, 2021, the due date for all property taxes, the county had collected $4,090,000 in taxes. During the current fiscal year, the county collected $54,000 in delinquent taxes and $5,000 in interest and penalties on the delinquent taxes. The county imposed penalties and interest in the amount of $14,700 but only expects to collect $12,900 of that amount. At the end of the fiscal year (June 30, 2021), uncollected taxes, interest, and penalties are reclassified. They are not expected to be collected within the first 60 days for the following fiscal year. Required Record entries for the above transactions as stated in the individual statements below, and post corresponding information into the Revenues ledger as appropriate. Prepare journal entries to record the tax levy on July 1,…
A city keeps its books on a calendar-year basis. On April 1, 2019, the city sold $500,000 of 2% general obligation bonds, payable in semi-annual installments. The first installment, due October 31, 2019 covered interest of $5,000 and principal of $10,000. For the year ended December 31, 2019, how much should the Debt Service Fund report as expenditures? $15,000 $5,000 $15,000, plus an accrual for three months' interest $5,000, plus an accrual for three months' interest and principal
Dixon Development began operations in December 2021. When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. For some lots, Dixon recognizes income for tax purposes when collected. Income recognized for financial reporting purposes in 2021 for lots sold this way was $20 million, which will be collected over the next three years. Scheduled collections for 2022–2024 are as follows: 2022 $ 8 million 2023 10 million 2024 2 million $ 20 million Pretax accounting income for 2021 was $29 million. The enacted tax rate is 40%. Required:1. Assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2021.2. Suppose a new tax law, revising the tax rate from 40% to 35%, beginning in 2023, is enacted in 2022, when pretax accounting income was $24 million. No 2022 lot sales qualified for the special…
Dixon Development began operations in December 2021. When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. For some lots, Dixon recognizes income for tax purposes when collected. Income recognized for financial reporting purposes in 2021 for lots sold this way was $12 million, which will be collected over the next three years. Scheduled collections for 2022–2024 are as follows: 2022 $ 4 million 2023 5 million 2024 3 million $ 12 million Pretax accounting income for 2021 was $16 million. The enacted tax rate is 25%. Required: Assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2021. Suppose a new tax law, revising the tax rate from 25% to 20%, beginning in 2023, is enacted in 2022, when pretax accounting income was $20 million. No 2022 lot sales qualified for the special…
For its fiscal year ending December 31, 2020, Twin City levied $500 million in property taxes. It collected taxes applicable to fiscal 2020 as follows (in millions): December 15, 2019 $20M January 20, 2020 $440M February 2, 2021 $15M April 5, 2021 $25M For the fiscal year ending December 31, 2020, how much should Twin City recognize in property tax revenue (in millions) in its general fund? A. $455M. B. $440M. C. $500M. D. $475M.
Changes in mix of revenues and expenditures must be interpreted with care. The data that follow were drawn from the city of Boulder, Colorado’s CAFR. Dates have been changed. They are from two statistical-section schedules showing the mix of revenue and expenditures for a 10-year period. They include amounts only from the general fund, special revenue funds, and debt service funds. 2020 2021 (amounts in thousands) Revenues Sales and use taxes $ 97,397 $104,136 General property taxes 29,474 29,434 Other taxes 20,278 21,184 Charges for services 27,030 22,670 Intergovernmental 16,420 13,348 Proceeds from bonds and notes 54,830 Other 20,660 21,473 Total revenues $266,089 $212,245 Expenditures General government and administration $ 27,717 $ 30,185 Public safety 47,825 48,202 Public works 22,178 27,896 Housing and human services 13,384 20,226 Culture and recreation 25,677 28,089 Capital outlay 29,111 19,218 Debt service 13,574 16,375…