Wadley City has the following information just prior to the start of the fiscal year. The City uses the direct approach to calculating property taxes. The following identifies the information necessary to record the budget for fiscal years ended December 31, 2018 and December 31, 2019.

Property tax levy date
Property tax due dates (even collections on each date)
Assessed valuation subject to property tax levy Property tax rate
Estimated uncollectible portion of tax levy Appropriations
Estimated transfer from a discontinued internal service fund

42. JANUARY 1, 2018 – RECOGNIZE REVENUE

FY 1/1/2017 – 12/31/2017 10/1/2017 2/1/ 2018 4/1/2018        $210,000,000         0.025         5.0%         $4,800,000        $          0

FY 1/1/2018 – 12/31/2018 10/1/2018 2/1/2019 4/1/2019         $215,000,000         0.024         4.0%         $4,900,000        $40,000

FY 1/1/2019 – 12/31/2019 10/1/2019 2/1/2020 4/1/2020         $220,000,000         0.025         4.0%         $5,100,000        $          0

Address any revenue recognition entries (i.e., record any unavailable revenue from the prior year as revenue in the current year). Assume that for purposes of the government-wide statements, revenue is recognized using a more conservative approach to keep the revenue recognition consistent with the general fund when possible.

43. FEBRUARY 1, 2018 – RECORD PURCHASE ORDERS

Wadley City issued purchase orders for office and other supplies totaling $100,000.

44. FEBRUARY 1, 2018 – RECORD PROPERTY TAX RECEIPTS

The City collects property taxes associated with the 10/1/2017 levy in the amount of 2,480,000.

45. MARCH 1, 2018 – SUPPLIES ARE RECEIVED

The City received 60% of the supplies ordered in #43 above at an actual cost of $61,500.

46. APRIL 1, 2018 – RECORD PROPERTY TAX RECEIPTS

The City collects property taxes associated with the 10/1/2017 levy in the amount of 2,535,000.

47. APRIL 15, 2018 – RECORD DELINQUENT PROPERTY TAXES

Amounts still owed for property taxes associated with the 10/1/2017 levy have become delinquent. Any necessary reclassification of taxes receivable and the related allowance account

Answer rating: 100% (QA)

43 FEBRUARY 1 2018 RECORD PURCHASE ORDERS Wadley City issued purchase orders for office and other su... View the full answer