LooseLeaf for Advanced Accounting (Irwin Accounting) - Standalone book
13th Edition
ISBN: 9781259444951
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 16, Problem 56P
The City of Coyote mailed property tax bills for 2018 to its citizens during August 2017. Payments could be made early to receive a discount. The levy becomes legally enforceable on February 15, 2018. All money received must be spent during 2018 or later. The total assessment is $300,000; 40 percent of that amount, less a 10 percent discount, is collected in 2017. The city expects to receive all of the remaining money during 2018 with no discount. During 2017, the government increased cash as well as a revenue for the amount received. No change was made in creating the government-wide financial statements.
- a. What was the correct overall change in the city’s net position as shown on the government-wide financial statements?
- b. What was the correct change for 2017 in the fund balance reported in the general fund?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following transactions relate to Newport City’s special revenue fund.
In 2020, Newport City created a special revenue fund to help fund the 911 emergency call center. The center is to be funded through a legally restricted tax on cellular phones. No budget is recorded.
During the first year of operations, revenues from the newly imposed tax totaled $530,000. Of this amount, $477,000 has been received in cash and the remainder will be received within 60 days of the end of the fiscal year.
Expenditures (salaries) incurred through the operation of the 911 emergency call center totaled $469,000. Of this amount, $438,515 was paid before year-end.
During the year the state government awarded Newport City a grant to reimburse the City’s costs (not to exceed $180,000) for the purpose of training new 911 operators. During the year, the City paid $171,000 (not reflected in the expenditures above) to train new operators for the 911 emergency call center and billed the state government.…
The following transactions relate to Newport City's special revenue Fund.
1. In 2020, Newport City created a special revenue fund to help the 911 emergency call center. the center is to be funded through a legally restricrted tax on cellular phones. No budget is recorded.
2. During the first year of operations, revenues from the newly imposed tax totaled $489,000. Of this amount $444,000 has been received in cash and the remainder will be received within 60 days of the end of the fiscal year..
3. expenditures (salaries) incurred through the operation of the 911 emergency call center totaled $449,000. Of this amount $422,000 was paid before year-end.
4. During the year the state government awarded Newport City a grantto reimburse the city's cost ( not to exceed $150,000) for the pupose of training new 911 operators. During the year, the city paid $146,500 ( not relfected inthe expenditures above) to trian new operators for the 911 emergancy call center and billed the state government.…
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.
Chapter 16 Solutions
LooseLeaf for Advanced Accounting (Irwin Accounting) - Standalone book
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - Prob. 4QCh. 16 - What measurement focus is used in fund financial...Ch. 16 - Prob. 6QCh. 16 - Prob. 7QCh. 16 - In applying the current financial resources...Ch. 16 - Prob. 9QCh. 16 - What are the five fund types within the...
Ch. 16 - Prob. 11QCh. 16 - What are the four fund types within the fiduciary...Ch. 16 - Prob. 13QCh. 16 - Fund financial statements have separate columns...Ch. 16 - The general fund of a city reports assets of...Ch. 16 - Why are budgetary entries recorded in the...Ch. 16 - How are budget results shown in the financial...Ch. 16 - Prob. 18QCh. 16 - Prob. 19QCh. 16 - Prob. 20QCh. 16 - How do governmental funds report capital outlay in...Ch. 16 - Prob. 22QCh. 16 - Prob. 23QCh. 16 - Prob. 24QCh. 16 - How is the issuance of a long-term bond reported...Ch. 16 - Prob. 26QCh. 16 - Prob. 27QCh. 16 - Prob. 28QCh. 16 - What is an internal exchange transaction, and how...Ch. 16 - Prob. 1PCh. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Which of the following statements is correct about...Ch. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - The City of Bagranoff holds 90,000 in cash that...Ch. 16 - Prob. 11PCh. 16 - The general fund pays rent for two months. Which...Ch. 16 - A purchase order for 3,000 is recorded in the...Ch. 16 - At the end of the current year, a government...Ch. 16 - A government buys equipment for its police...Ch. 16 - A city acquires supplies for its fire department...Ch. 16 - Prob. 17PCh. 16 - The state government passes a law requiring...Ch. 16 - The state awards a grant of 50,000 to the Town of...Ch. 16 - A city issues a 60-day tax anticipation note to...Ch. 16 - A city issues five-year bonds payable to finance...Ch. 16 - The City of Dylan issues a 10-year bond payable of...Ch. 16 - Prob. 23PCh. 16 - A 110,000 payment is made on a long-term...Ch. 16 - A city constructs a special assessment project (a...Ch. 16 - A city constructs curbing in a new neighborhood...Ch. 16 - Which of the following is an example of an...Ch. 16 - Cash of 60,000 is transferred from the general...Ch. 16 - Cash of 60,000 is transferred from the general...Ch. 16 - Cash of 20,000 is transferred from the general...Ch. 16 - Cash of 20,000 is transferred from the general...Ch. 16 - The board of commissioners of the City of...Ch. 16 - A city orders a new computer for its general fund...Ch. 16 - Cash of 90,000 is transferred from a citys general...Ch. 16 - The governmental funds of the City of Westchester...Ch. 16 - Government officials of Hampstead County ordered a...Ch. 16 - A local government has the following transactions...Ch. 16 - Prepare journal entries for the City of Puddings...Ch. 16 - Prepare journal entries for a local government to...Ch. 16 - The following unadjusted trial balances are for...Ch. 16 - Following are descriptions of transactions and...Ch. 16 - Chesterfield County had the following...Ch. 16 - The following trial balance is taken from the...Ch. 16 - A city has only one activity, its school system....Ch. 16 - Prob. 45PCh. 16 - Prob. 46PCh. 16 - The following transactions relate to the General...Ch. 16 - Use the transactions in problem (47) but prepare a...Ch. 16 - Government officials of the City of Jones expect...Ch. 16 - On December 1, 2017, a state government awards a...Ch. 16 - Indicate (i) how each of the following...Ch. 16 - Fund A transfers 20,000 to Fund B. For each of the...Ch. 16 - Use the following information for Problems 5359:...Ch. 16 - On December 30, 2017, the City of Coyote borrowed...Ch. 16 - An art display set up for the City of Coyote was...Ch. 16 - The City of Coyote mailed property tax bills for...Ch. 16 - Prob. 57PCh. 16 - In 2017, the City of Coyote received a 320,000...Ch. 16 - During 2017, the City of Coyotes General Fund...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- On January 1, 2019, a city recorded General Fund property tax revenues of $750,000 but made no provision for uncollectible receivables or tax refunds. During the year, it collected property taxes of $720,000, wrote off $4,000 as uncollectible, and made tax refunds of $3,000. At year-end, the city finance director concluded that $10,000 of the delinquent taxes would be collected in January and February of 2020, $12,000 would be collected later in 2020, and $1,000 would need to be written off as uncollectible. How much should the city report as property tax revenue in its General Fund financial statements for the year 2019? a.713,000 b.730,000 c.720,000 d.742,000arrow_forwardDawson City has a December 31 fiscal year end. The City levies property taxes of $5,000,000 on February 1, 2022 and expects 2% to be uncollectible. The City has two due dates for collection, 1/2 on October 31, 2022 and 1/2 on April 30, 2023. Record the requested journal entries: 1. Record the levy on February 1, 2022, assuming the City records the entire levy as unavailable revenue. 2. Record the collection of property taxes of $2,410,000 on October 31, 2022. 3. Record any necessary adjusting journal entry at December 31, 2022. 4. Record any necessary journal entry to recognize revenue associated with the 2/1/2022 levy in 2023. Repeat this process and record all four journal entries if the entire levy had been treated as revenue at the time of the levy.arrow_forwardOn December 1, 2017, a state government awards a city government a grant of $1 million to be used specifically to provide hot lunches for all schoolchildren. No money is received until June 1, 2018. For each of the following, indicate whether the statement is true or false and, if false, explain why. Because the government received no money until June 1, 2018, no amount of revenue can be recognized in 2017 on the government-wide financial statements. If this grant has no eligibility requirements and the money is properly spent in September 2018 for the hot lunches, the revenue should be recognized during that September. Because this money came from the state government and because that government specified its use, this is a government-mandated nonexchange transaction. If the government had received the money on December 1, 2017, but eligibility reimbursement requirements had not been met yet, unearned revenue of $1 million would have been recognized on the government-wide financial…arrow_forward
- In 2020 Metro City received $250,000 of tax underpayments and paid $80,000 in refunds based on taxpayers filing their 2019 returns in 2020. In addition, in 2020 the city received $700,000 in withholding and estimated tax payments for 2020. The city conducted audits in 2019 and assessed and billed tax deficiencies of $30,000 of which it collected $25,000 in 2019 and $5,000 in 2020. The city conducted audits in 2020 and assessed and billed tax deficiencies of $40,000 of which it collected $36,000 in 2020. Required; Calculate the amount of Income Tax Revenue that Metro City should report on its 2020 Fund Financial Statements.arrow_forwardThe 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…arrow_forwardThe City of Troy 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 $2,500,000 to finance governmental activities for the remainder of the fiscal year. On that date, it had $770,000 of cash on hand and $830,000 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 $1,100,000. 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 6 percent per annum to a local bank. Record the issuance of the tax anticipation notes in…arrow_forward
- On December 1, 2017, a state government awards a city government a grant of $1 million to be used specifically to provide hot lunches for all schoolchildren. No money is received until June 1, 2018. For each of the following, indicate whether the statement is true or false and, if false, explain why.a. Because the government received no money until June 1, 2018, no amount of revenue can be recognized in 2017 on the government-wide financial statements.b. If this grant has no eligibility requirements and the money is properly spent in September 2018 for the hot lunches, the revenue should be recognized during that September.c. Because this money came from the state government and because that government specified its use, this is a government-mandated nonexchange transaction.d. If the government had received the money on December 1, 2017, but eligibility reimbursement requirements had not been met yet, unearned revenue of $1 million would have been recognized on the government-wide…arrow_forwardThe government charges OMR 400,000 general property taxes for the year 2019. The amount collected till the year end accounted to OMR 360,000. It expects to collect the balance shortly after year-end. These taxes are accounted as unrestricted resources to be used for financing of operating activities that would contribute towards public welfare. During the year, the government incurred OMR 330,000 in general operating expenditures of which it actually paid OMR 310,000. To cover up the capital project fund deficit of 2018, the government had borrowed funds by issuing long term notes amounting to RO 50,000. A debt service fund was created and an amount of OMR 40,000 is transferred from the general fund to service the debt. Based on the above case, which among the following statements are true? a. The unrestricted resources are accounted in the General fund and the cash balance in the fund statement amounts to RO OMR 10,000 b. The unrestricted resources are accounted in the Debt service…arrow_forwardUnlike Illinois, the Village of Maple Park is located in a state in which property taxes are levied and collected in the same fiscal year. The information below pertains to the Village’s general fund for the year ended December 31, 2022: $9,819,000 of property tax revenue was included in the estimated revenues budget for 2022; Property taxes were levied in February, 2022, and $171,000 of the levy was expected to be uncollectible; On the two property tax collection dates, a total of $9,600,000 was collected; At December 31, 2022, the Village expected property tax collections during the first 60 days of 2023 to be $38,000. Required: 1. On the December 31, 2022, balance sheet for the Village’s general fund, what is the amount reported under assets for property taxes receivable(net)? 2. On the Village’s general fund statement of revenues, expenditures, and changes in fund balance for the year ended December 31, 2022, what is the amount reported for property…arrow_forward
- In August 2017, the voters of Carp City approved construction of a new public library at the cost of $20 million, to be financed by general obligation bonds. The city put the contracts out to bid and approved the bid of the lowest bidder. In September 2017, the city began the long process of issuing the general obligation bonds. However, so that construction could begin immediately, the city also issued $5 million in bond anticipation notes in September 2017, maturing in March 2018. In December 2017, one of the city’s major manufacturers announced that it would be closing its plant in the city, eliminating over half of the jobs currently available in the city. (a) Prepare journal entries to initially record the issuance of the BANs in the city’s capital projects fund as well as in its government-wide financial statements. (b) The city decided to reconsider the scope of the library project in light of the plant closure, prepare any entries necessary to change the reporting of the…arrow_forwardOn 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,…arrow_forward1. The City of Access collects its annual property taxes late in its fiscal year. Consequently, cach 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, 2016, the City estimated that it will require OMR 2,500,000 to finance governmental activities for the remainder of the 2016 fiscal year. On that date, it had OMR 790,000 of cash on hand and OMR 830,000 of current liabilities. Collections for the remainder of FY 2016 from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at OMR 1,100,000. Required: Calculate the estimated amount of tax anticipation financing that will be required for the remainder of FY 2016. Show work in good form.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
How to Calculate your Income Tax? Step-by-Step Guide for Income Tax Calculation; Author: ETMONEY;https://www.youtube.com/watch?v=QdJKpSXCYmQ;License: Standard YouTube License, CC-BY
How to Calculate Federal Income Tax; Author: Edspira;https://www.youtube.com/watch?v=2LrvRqOEYk8;License: Standard Youtube License