Question: A city levies property taxes of $2 billion in June 2015for its Fiscal year beginning July 1, 2015. The taxes are due by January 31,
A city levies property taxes of $2 billion in June 2015for its Fiscal year beginning July 1, 2015. The taxes are due by January 31, 2016. The following (in millions) indicates actual and anticipated cash collections relating to the levy:
June 2015……………………………. $ 50
July 2015 through June 2016………...$1,800
July 2016 through August 2016……...$ 40
September 2016 through June 2017…. $ 75
The city estimates that $15 million will eventually have to be refunded, owing to taxpayer appeals of the assessed valuation of their property, and that $35 million will be uncollectible.
Prepare a journal entry that summarizes the city’s property tax activity for the Fiscal year ending June 30, 2016, based on:
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