Loose-leaf For Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781260190083
Author: Jacqueline L. Reck James E. Rooks Distinguished Professor, Suzanne Lowensohn, Daniel Neely
Publisher: McGraw-Hill Education
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Question
Chapter 4, Problem 21EP
a.
To determine
Ascertain the estimated amount of required tax anticipation note financing.
b.
To determine
Prepare
c.
To determine
Prepare journal entry to record the repayment of the tax anticipation notes in the General Fund general journal and governmental activities at the government-wide level.
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Students have asked these similar questions
The 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…
1. 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.
Summer City levies $600,000 of property taxes for its current fiscal year. Three percent of the tax levy is expected to be uncollectible. The city collects $520,000 of its taxes during the
year and another $50,000 during the first two months of the following year. In addition, the city collected $10,000 of prior year taxes during the first two months of the current fiscal year
and another $3,000 during the remainder of the current fiscal year. What amount of property tax revenues should the city report in the governmental fund financial statements for the
current fiscal year?
$582,000.
$573,000.
$570,000.
$520,000.
Chapter 4 Solutions
Loose-leaf For Accounting For Governmental & Nonprofit Entities
Ch. 4 - Last month a local government collected property...Ch. 4 - When preparing the statement or schedule of...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - If the General Fund of a certain city needs...Ch. 4 - Prob. 6QCh. 4 - Explain why some governments may account for...Ch. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - A government reports Deferred Inflows of...Ch. 4 - Prob. 13CCh. 4 - Prob. 15CCh. 4 - Choose the best answer. When equipment is...Ch. 4 - Prob. 17.2EPCh. 4 - Goods for which a purchase order had been placed...Ch. 4 - Prob. 17.4EPCh. 4 - Garden City has calculated that General Fund...Ch. 4 - Prob. 17.6EPCh. 4 - Prob. 17.7EPCh. 4 - Prob. 17.8EPCh. 4 - Carroll City levies 200,000 of property taxes for...Ch. 4 - Prob. 17.10EPCh. 4 - During the current year, the City of Hickory Hills...Ch. 4 - On July 1, 2020, the beginning of its fiscal year,...Ch. 4 - Prob. 20EPCh. 4 - Prob. 21EPCh. 4 - At the end of the current fiscal year, the City of...Ch. 4 - The City of Waterville applied for a grant from...Ch. 4 - The following transactions occurred during the...Ch. 4 - The following transactions affected various funds...Ch. 4 - The following events and transactions relate to...Ch. 4 - The City of Castletons General Fund had the...Ch. 4 - Prob. 28EP
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