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strayer.acc410.2011.wk3.sln

# strayer.acc410.2011.wk3.sln - Acc 410 Week 3 Solution to...

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Acc 410 – Week 3 Solution to Homework 4-3 (1 points each for Part 1 (a) through (f) and 1 point for Part 2. 7 Points total.) 1. 2012 (a) Property taxes receivable \$170,000,000 Allowance for uncollectible taxes \$ 1,700,000 Deferred property taxes 168,300,000 To record 2012 tax levy (b) Cash \$120,000,000 Property taxes receivable \$120,000,000 To record the collection of cash Deferred property taxes \$120,000,000 Property tax revenues \$120,000,000 To recognize revenue on the taxes collected (c) Cash \$ 45,000,000 Property taxes receivable \$ 45,000,000 To record collection of property taxes in January and February Deferred property taxes \$ 45,000,000 Property tax revenues \$ 45,000,000 To recognize revenue on the taxes collected in January and February 2013 Property taxes receivable—delinquent \$ 5,000,000 Property taxes receivable \$ 5,000,000 To reclassify 2012 taxes as delinquent 2013 (d) Property taxes receivable \$190,000,000 Allowance for uncollectible taxes \$ 2,090,000 Deferred property taxes 187,910,000 To record 2013 tax levy 1

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(e) To record each piece separately DR Cash \$2.5M CR Property Taxes Receivable (Delinquent) \$2.5M Collected 2012 taxes in 2013 DR Deferred property taxes (2012) \$2.5M CR Property tax revenues (2012) \$2.5M Reclassify 2012 deferred revenues to revenues (I did not deduct points if this JE was omitted) DR Cash \$160M CR Property taxes receivable (current) \$160M Collected 2013 taxes in 2013 DR Deferred property taxes (2013) \$160M CR Property tax revenues (2013) \$160M Reclassify 2013 deferred revenues to revenues DR Cash \$1.9M CR Deferred Property taxes (advance payments, 2014) \$1.9M Record advance payments of 2014 taxes received in 2013 You could have combined these entries: DR Cash \$164.4M Deferred property taxes (2012) 2.5M* Deferred property taxes (2013) 160M CR Property Taxes Receivable (Delinquent) \$ 2.5M Property tax revenues (2012) 2.5M* Property taxes receivable (current) 160M Property tax revenues (2013) 160M Deferred Property taxes (advance payments, 2014) 1.9M To record taxes collected in 2013 including those applicable to 2012 and 2014. This JE is obviously less transparent than the separate reporting above. *(I did not deduct points if this part of the JE was omitted) (f) Allowance for uncollectible taxes \$ 1,000,000 Property taxes receivable—delinquent \$1,000,000 To write-off uncollectible taxes 2. In its government-wide, full accrual statements, the county would recognize as revenue the full amount of the tax levy (less the estimated allowance for uncollectibles) in the year the tax was levied and intended to finance — that is, \$168,300,000 in 2012 and \$187,910,000 in 2013. The county would not have to distinguish between taxes collected in the first sixty days of the following year and those expected to be collected thereafter. 2
4-4 (1 points each for Part 1 (a) through (g) and 1 point for Part 2 - ~.14 for (a) through (g). 8 Points total.) 1. Choose from (1) Derived tax, (2) Imposed, (3) Government-mandated or (4) Voluntary for the classification of non-exchange revenues a. Government mandated Grant receivable \$20 million

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strayer.acc410.2011.wk3.sln - Acc 410 Week 3 Solution to...

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