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Unformatted text preview: 4-3Property taxes are not necessarily recognized as revenuein the year collected.The fiscal year of Duchess County ends onDecember 31. Property taxes are due March 31 ofthe year in which they are levied and intended tofinance.1. Prepare journal entries (excluding closingentries) in the general fund (modified accrualbasis) to record the following property taxrelated transactions in which the countyengaged in 2012 and 2013.a. On January 15, 2012 the county councillevied property taxes of $170 million forthe year ending December 31, 2012. Officialsestimated that 1% were uncollectible.b. During 2012 it collected $120 million.c. In January and February 2013, prior topreparing its 2012 financial statements, itcollected an additional $45 million in 2012taxes. It reclassified the $5 million of 2012taxes not yet collected as delinquent.d. In January 2013 the county levied propertytaxes of $190 million to finance activities of2013; officials estimated that 1.1% wereuncollectible.e. During the remainder of 2013 the countycollected $2.5 million more in taxes relatingto 2012, $160 million relating to 2013, and$1.9 million (in advance) applicable to 2014.f. In December 2013 it wrote off $1 millionof 2012 taxes that it determined wasuncollectible.2. What amount of property tax revenue shouldthe county report in its government-wide (fullaccrual) statements for 2012 and 2013? Explain.4-4 Nonexchange revenue can be of four typesThe GASB has identifies four classes of exchange revenueDerive taxImposedGovernment mandatedVoluntary1 for each of the following revenue transactions involving a. In December 2013 the state in which the cityis located announced that it would grant thecity $20 million to bring certain public facilitiesinto compliance with the states recentlyenacted disability laws. As of year-end thecity had not yet received the funds, and it hadnot yet expended any funds on the statemandatedfacility improvements....
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This note was uploaded on 01/23/2012 for the course ACCOUNING e.g.101 taught by Professor N/a during the Spring '11 term at Strayer.
- Spring '11