The City of Troy collects its annual property taxes late in its fiscal year. Consequently, each...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The 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 $2,700,000 to finance governmental activities for the remainder of the fiscal year. On that date, it had $790,000 of cash on hand and $850,000 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 $1,200,000. 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 general journals of the General Fund and governmental activities at the government-wide level. c. By October 1, the city had collected a sufficient amount of current property taxes to repay the tax anticipation notes with interest. Prepare the general journals of the General Fund and governmental activities at the government-wide level. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the estimated amount of tax anticipation financing that will be required for the remainder of the current fiscal year. CITY OF TROY Calculation of Estimated Required Estimated Expenditure Requirements: Budgeted expenditures, remainder of year Current liabilities payable Estimated Resources Available: Tax Anticipation Financing Cash on hand, beginning of year Collections of budgeted revenues and delinquent property taxes, including interest and penalties Estimated Amount of Required Tax Anticipation Note Financing $ 0 0 $ 0 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 general journals of the General Fund and governmental activities at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Transaction Fund / Governmental Activties 1. Record the issuance of the tax anticipation notes. 1 General Fund Governmental Activities General Journal Debit Credit Show less By October 1, the city had collected a sufficient amount of current property taxes to repay the tax anticipation notes with interest. Prepare the general journals of the General Fund and governmental activities at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Transaction Fund / Governmental Activties 1. Record the repayment of the tax anticipation notes and interest. 1 General Fund Governmental Activities General Journal < Required B Required C < Debit Credit The 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 $2,700,000 to finance governmental activities for the remainder of the fiscal year. On that date, it had $790,000 of cash on hand and $850,000 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 $1,200,000. 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 general journals of the General Fund and governmental activities at the government-wide level. c. By October 1, the city had collected a sufficient amount of current property taxes to repay the tax anticipation notes with interest. Prepare the general journals of the General Fund and governmental activities at the government-wide level. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the estimated amount of tax anticipation financing that will be required for the remainder of the current fiscal year. CITY OF TROY Calculation of Estimated Required Estimated Expenditure Requirements: Budgeted expenditures, remainder of year Current liabilities payable Estimated Resources Available: Tax Anticipation Financing Cash on hand, beginning of year Collections of budgeted revenues and delinquent property taxes, including interest and penalties Estimated Amount of Required Tax Anticipation Note Financing $ 0 0 $ 0 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 general journals of the General Fund and governmental activities at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Transaction Fund / Governmental Activties 1. Record the issuance of the tax anticipation notes. 1 General Fund Governmental Activities General Journal Debit Credit Show less By October 1, the city had collected a sufficient amount of current property taxes to repay the tax anticipation notes with interest. Prepare the general journals of the General Fund and governmental activities at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Transaction Fund / Governmental Activties 1. Record the repayment of the tax anticipation notes and interest. 1 General Fund Governmental Activities General Journal < Required B Required C < Debit Credit
Expert Answer:
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
Posted Date:
Students also viewed these accounting questions
-
The 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...
-
Calculating Required lax Anticipation Financing and Recording Issuance of Tax Anticipation Notes. The City of Perrin collects its annual property taxes late in its fiscal year. Consequently, each...
-
The article Mutational Landscape Determines Sensitivity to PD-1 Blockade in Non-Small Cell Lung Cancer (Science, 3 April 2015) described a study of 16 cancer patients taking the drug Keytruda. For...
-
In a study of the effects of magnets on back pain, some subjects were treated with magnets while others were given non-magnetic devices with a similar appearance. The magnets did not appear to be...
-
Consider a 4-year amortizing loan. You borrow $1,000 initially and repay it in four equal annual year-end payments. a. If the interest rate is 8%, what is the annual payment? b. Fill in the following...
-
Prepare a preliminary design for a CRS with a power capacity of \(50 \mathrm{MW}\) similar to Solar 2 for a location in Nevada.
-
Winterborn Manufacturing Co. completed the following transactions during 2016: Jan. 16 Declared a cash dividend on the 4%, $100 par noncumulative preferred stock (950 shares outstanding). Declared a...
-
Write a 1,050-word report using your company or one with which you are familiar (if you prefer, your facilitator can assign one to you). Answer the following questions for your chosen organization....
-
The following transactions involving intangible assets of Simmons Corporation occurred on or near December 31, 2020. Simmons paid Galaxy Company $600,000 for the exclusive right to market a...
-
For solutions of optimization problems from Examples 3.3 analyse sensitivity of. 1. the demand for a production factor and the maximum profit to changes in a product price and to changes in values of...
-
What are a demand function and an inverse function of demand for one product?
-
Is it possible in the simple model of exchange or in the static Arrow-Hurwicz model that an allocation not accepted by traders is Pareto optimal?
-
What conditions need to be satisfied by exogenous linear: demand function and function of product supply to have a positive equilibrium price established on a market of this product?
-
In periods price of the first good and the price of the second good change according to equations: t = 0, 1, 2, ..., 20 a utility level a consumer wants to achieve, the
-
Select a Middle Eastern organization and review its vision, mission, and strategy. Then, examine its approach to its management and leadership of performance management in areas including, but not...
-
Solve for the equilibria of the following discrete-time dynamical systems Pr pt+1 = Pr+2.0(I-Pr)
-
The rotor shown in Fig. 9.44 (a) is balanced temporarily in a balancing machine by adding the masses \(m_{1}=m_{2}=90 \mathrm{~g}\) in the plane \(A\) and \(m_{3}=m_{4}=90 \mathrm{~g}\) in the plane...
-
A turbine rotor is run at the natural frequency of the system. A stroboscope indicates that the maximum displacement of the rotor occurs at an angle \(229^{\circ}\) in the direction of rotation. At...
-
The cylinders of a four-cylinder in-line engine are placed at intervals of \(300 \mathrm{~mm}\) in the axial direction. The cranks have the same length, \(100 \mathrm{~mm}\), and their angular...
Study smarter with the SolutionInn App