Question: When Oscar City prepared its fund balance sheet for the

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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