Question: The following information concerns tax revenues for the city of

The following information concerns tax revenues for the city of Fairfield. The balances concerning property taxes on January 1, 2018,
Delinquent property taxes receivable . . . . .. . . . . . .. . . . . . .. . . . . $105,000
Allowance for uncollectible delinquent taxes . . . . . .. . . . . . .. . . . . (30,000)
Tax liens receivable . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . 40,000
Allowance for uncollectible tax liens. . . . . .. . . . . . .. . . . . . .. . . . . (23,000)
Required
Prepare entries in the general fund for the following 2018 events:
Jan. Since current property taxes would not be collected for several months, $275,000 was borrowed using tax anticipation notes.
Feb. Tax liens of $10,000 were collected; in addition, $2,000 of interest was collected that had not been accrued. The balance of tax liens was settled by receiving $13,000 for the property subject to the tax liens.
Apr. Collections on delinquent property taxes were $100,000, and interest of $4,500 was collected. The interest had not been accrued. The balance of the account was converted into tax liens.
July Current property taxes were levied for$422,000 with a 5% allowance for uncollectible amounts.
Sept. Collection of current property taxes totaled $345,000. The tax anticipation notes were paid off with interest of $18,000.

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  • CreatedApril 13, 2015
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