Author Question: (Entries to prepare government-wide statements - property tax revenue deferral) When it prepared ... (Read 137 times)

Destiiny22

  • Hero Member
  • *****
  • Posts: 557
(Entries to prepare government-wide statements - property tax revenue deferral)
 
  When it prepared its financial statements for
 
  calendar year 2012, Watson Town assumed that it would collect all unpaid property taxes during the first 60 days of 2013 . As a result, no deferred revenues were reported. The following facts pertain to the property tax revenues for calendar years 2013 and 2014 . Make adjusting entries needed to prepare both the fund-level and the government-wide financial statements for 2013 and 2014 . Watson Town does not record deferred revenues until it makes end of the year adjustments.
 
   2013 2014
   Tax levy 700,000 730,000
   Taxes collected in cash from the year's levy 670,000 690,000
   Taxes expected to be collected in first
   60 days of the following year  22,000  29,000
   Taxes expected to be collected later in
   the following year  8,000  11,000
 
  Assume that all taxes expected to be collected in the following year were actually collected when expected. Also assume that all journal entries to record the tax levy, tax collections and so on were made, as appropriate.
 
  What will be an ideal response?

Question 2

A typical account number for a contra-account would be
 a. 185.
   b. 185.c.
   c. 185.1.
   d. 185.contra.



briezy

  • Sr. Member
  • ****
  • Posts: 347
Answer to Question 1

2013 Fund-level
Revenues - property taxes 8,000
Deferred revenues 8,000

2013 Government-wide
Deferred revenues 8,000
Revenues - property taxes 8,000

2014 Fund-level
Revenues - property taxes 11,000
Deferred revenues 11,000

2014 Government-wide
Deferred revenues 11,000
Revenues - property taxes 3,000
Net position 8,000



Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

For a complete list of videos, visit our video library