Question 2: nepare journal entries to record the following transactions in the general ledger of Al-Wakra...

 

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Question 2: nepare journal entries to record the following transactions in the general ledger of Al-Wakra City Council and the necessary adjusting entries: prepare 1. Al-Wakra City Council levied real estate taxes in the amount of 24,000,000 riyals for the year 2015. These taxes were levied on January 1, 2015 and the city council expects that 160,000 riyals is not collectible. It is also expected that three-quarters of the taxes receivable will be collected during the 2% discount period. In addition, there is 2,000,000 riyals of taxes receivable that will be collected before the end of the year and after the discount period. The remaining balance of the taxes receivable will be collected on an equal basis during the first ten months of the year 2016. 2. Al-Wakra City Council collected 18,200,000 riyals (before discount) of taxes receivable before the end of the discount period. The remaining balance of taxes receivable are past due. 3. Al-Wakra City Council has written off taxes receivable in the amount of 60,000 riyals, as they are uncollectible. 4. Al-Wakra City Council collected 1,800,000 riyals of the taxes after the discount period, but before the end of the year. Question 2: nepare journal entries to record the following transactions in the general ledger of Al-Wakra City Council and the necessary adjusting entries: prepare 1. Al-Wakra City Council levied real estate taxes in the amount of 24,000,000 riyals for the year 2015. These taxes were levied on January 1, 2015 and the city council expects that 160,000 riyals is not collectible. It is also expected that three-quarters of the taxes receivable will be collected during the 2% discount period. In addition, there is 2,000,000 riyals of taxes receivable that will be collected before the end of the year and after the discount period. The remaining balance of the taxes receivable will be collected on an equal basis during the first ten months of the year 2016. 2. Al-Wakra City Council collected 18,200,000 riyals (before discount) of taxes receivable before the end of the discount period. The remaining balance of taxes receivable are past due. 3. Al-Wakra City Council has written off taxes receivable in the amount of 60,000 riyals, as they are uncollectible. 4. Al-Wakra City Council collected 1,800,000 riyals of the taxes after the discount period, but before the end of the year.

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