Question

When Oscar City prepared its fund balance sheet for the year ended December 31, 2012, the General Fund column contained the following items: Property taxes receivable— delinquent: $ 18,000; Allowance for uncollectible taxes: $ 2,000; Deferred property taxes: $ 5,000. During 2013, Oscar collected $ 16,000 of the delinquent taxes and wrote off the balance of the allowance account.
Oscar levied real property taxes in the amount of $ 1,350,000 to finance its General Fund budget for the calendar year 2013. During the year, Oscar collected $ 1,280,000 against this levy. With regard to the remaining $ 70,000, Oscar expected to collect $ 47,000 during the first 2 months of calendar year 2014 and $ 20,000 later in the year between March and August 2014. Oscar wrote off $ 3,000 as uncollectible.
Using this information,
(a) Calculate how much property tax revenue Oscar will recognize in its governmental fund statements for 2013;
(b) Calculate how much property tax revenue Oscar will recognize in its government- wide statements; and
(c) Prepare the journal entries needed to adjust the fund statements so government- wide statements can be prepared.



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  • CreatedDecember 30, 2014
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