Q1. Determine the Millage Rate from the following information: (1.5 Marks)

Amount to be collected (a)	$ 190,000
Estimated Uncollectible (b)	5%
Required Levy	?
Assessed Property Value	4,000,000
Less: Property Not Taxable	(300,000)
Less: Exemptions	(260,000)
Taxable Assessed Value	?
Millage Rate	?

Answer:

Q2. A city receives sales taxes of $825,000 from the state during the calendar year 2018. In January 2019, the state advises the city that it will remit, by February 28, 2019, an additional $345,000 for taxes collected during the last quarter of 2018. Further, based on past experience, the city expects to receive in April an additional $93,000 applicable to 2018. The city has a policy of considering sales taxes applicable to a particular year as “available” if received by February 28 of the following year; hence, $93,000 of the $345,000 receivable is not “available.”

(1.5 Marks)

Required:

a. Prepare necessary journal entry to record collection of sales tax for the city.

b. Prepare necessary journal entry to record year-end accrual for sales taxes receivable.

Answer rating: 100% (QA)

Answer A millage rate is the tax rate used to calculate local prop... View the full answer