The City of Des Moines, Iowa, reported General Fund property taxes receivable (net of uncollectibles) of $49,015,040 on June 30, 20X5, and Deferred Revenues of $47,622,447.
a. Record the following transactions in the City of Des Moines General Fund.
1. From July 1, 20X5, to August 29, 20X5, the city collected $3,800,000 of taxes, including $1,392,593 of taxes that had been levied for the 20X4–20X5 fiscal year. (The city uses a 60-day cutoff for recognizing governmental fund revenues.)
2. Between August 30, 20X5, and March 15, 20X6, the city collected $36,000,000 of taxes receivable.
3. On March 15, 20X6, the city levied taxes for 20X6–20X7 totaling $53,000,000, of which $2,000,000 is expected to be uncollectible.
4. Between March 15, 20X6, and June 30, 20X6, the city collected $6,800,000 of taxes, including $1,800,000 of taxes levied for the next fiscal year. The city expects to collect another $1,500,000 of 20X5–20X6 taxes between July 1, 20X6, and August 29, 20X6.
b. Compute the amount of tax revenues that Des Moines should report for the fiscal year ended June 30, 20X6.
c. Compute the amount of deferred revenues (including taxes collected in advance) that the city should report at June 30, 20X6. Where should the deferred revenues be reported in the city’s General Fund balance sheet?
(Based on a recent City of Des Moines, Iowa, Comprehensive Annual Financial Report.)