Provide journal entries for each transaction: 1. The city levied $300,000 of special property taxes that are

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Question:

Provide journal entries for each transaction:

1. The city levied $300,000 of special property taxes that are restricted by statue and by bond indentures for the servicing of general obligation bonds. One percent (1%) of the taxes is expected to be uncollectible.

2. The city collected $246,800 of property taxes before the due date for taxes. The remainder of the taxes recievable become delinquent.

3. The city levied interest and penalties of $6,650 on the overdue taxes receivable. $1,370 of the interest and penalties is expected to prove uncollectible. The interest and penalties on taxes are restricted for debt service as well.

4. The city collected $41,040 of delinquent taxes and $5,130 of interest and penalties receivable.

5. The city wrote off uncollectible taxes receivable of $4,370 and related interest and penalties of $1,370.

6. Investments that cost $1,000,000 were sold for $1,050,000. Investment income is not restricted, but is retained in the fund to be used for debt service if needed.

7. The city paid interest of $800,000 on bonds payable and retired $500,000 of principle.

8. $45,050 of the Dec. 31, 20X4, balance of delinquent taxes receivable and $6,950 of the Dec. 31, 20X4, balance of interest and penalties receivable are not expected to be collected within the first 60 days of 20X5. ( Jan. 1, 20X4, delinquent taxes receivable balance included $43,100 of taxes that were collected after the first 60 days of 20X4, and the Jan. 1, 20X4, interest and penalties receivable balance included $6,900 of interest and penalties on taxes that were collected after the first 60 days of 20X4. ( Hint: Deferred revenues must be adjusted.)

9. The fair value of investments at year end was $254,000

Journal Entry

Journal entry is the process of recording all business transaction in the chronological order in the books. In double entry book-keeping system, each journal entry involves minimum two or more account.