A change to the full accrual basis may have little impact upon reported revenues. A city...

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A change to the full accrual basis may have little impact upon reported revenues. A city levies property taxes of $4 billion in June 2021 for its fiscal year beginning July 1, 2021. The taxes are due by January 31, 2022. The following (in millions) indicates actual and anticipated cash collec- tions relating to the levy: June 2021 July 2021 through June 2022 July 2022 through August 2022 September 2022 through June 2023 $100 $3,600 $80 $150 The city estimates that $30 million will eventually have to be refunded, owing to taxpayer appeals of the assessed valuation of their property, and that $70 million will be uncollectible. 1. Prepare a journal entry that summarizes the city's property tax activity for the fiscal year ending June 30, 2022, based on: a. The modified accrual basis (i.e., for fund statements) b. The full accrual basis (i.e., for government-wide statements) 2. Indicate the differences in amounts that would be reported on both the statement of net position and the statement of activities on a full accrual basis. 3. Suppose that in the following year the tax levy and pattern of collections were identical to those of the previous year. What would now be the difference in amounts reported on the statement of net position and the statement of activities on a full accrual basis? A change to the full accrual basis may have little impact upon reported revenues. A city levies property taxes of $4 billion in June 2021 for its fiscal year beginning July 1, 2021. The taxes are due by January 31, 2022. The following (in millions) indicates actual and anticipated cash collec- tions relating to the levy: June 2021 July 2021 through June 2022 July 2022 through August 2022 September 2022 through June 2023 $100 $3,600 $80 $150 The city estimates that $30 million will eventually have to be refunded, owing to taxpayer appeals of the assessed valuation of their property, and that $70 million will be uncollectible. 1. Prepare a journal entry that summarizes the city's property tax activity for the fiscal year ending June 30, 2022, based on: a. The modified accrual basis (i.e., for fund statements) b. The full accrual basis (i.e., for government-wide statements) 2. Indicate the differences in amounts that would be reported on both the statement of net position and the statement of activities on a full accrual basis. 3. Suppose that in the following year the tax levy and pattern of collections were identical to those of the previous year. What would now be the difference in amounts reported on the statement of net position and the statement of activities on a full accrual basis?

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Answer Journal Entries a Modified Accrual Basis Fund Statements Date Account Debit Million Credit Mi... View the full answer