Assuming that the City maintains the books and record in a manner that facilitates the preparation of the fund financial statements, prepare all necessary 2003 journal entries to record the following events related to the revenues of a city. The City has a 12/31 fiscal year-end. The city has adopted the 60-days rule for all revenue recognition for which it is appropriate.
a) On January 3, the City Council levied property taxes of $1 million to support general government operations, due in two
equal installments with due dates of June 20 and December 20. The property taxes were levied to finance the 2008 budget
which had been adopted on November 3, 2007. Historically 2% of property taxes are uncollectible.
b) The City collected the following amounts related to property taxes
Delinquent 2007 taxes collected in January, 2008 $11,000
Delinquent 2007 taxes collected in March, 2008 $12,500
2008 taxes collected in June, 2008 $540,000
2008 taxes collected in December, 2008 $400,000
Delinquent 2008 taxes collected in January, 2009 $10,000
Delinquent 2008 taxes collected in March, 2009 $15,000
c) Delinquent 2008 property taxes were reclassified as delinquent.
d) $2,000 of 2006 taxes was written off.
The way to answer this question is ... View the full answer