Question

In: Accounting

During the current year, the City of Plattsburgh recorded the following transactions related to its property...

During the current year, the City of Plattsburgh recorded the following transactions related to its property taxes:

Levied property taxes of $6,610,000, of which 2 percent is estimated to be uncollectible.

Collected current property taxes amounting to $5,985,000.

Collected $54,000 in delinquent taxes and $4,800 in interest and penalties on the delinquent taxes. These amounts had been recorded as Deferred Inflows of Resources in the prior year.

Imposed penalties and interest in the amount of $7,000 but only expects to collect $6,200 of that amount.

Reclassified uncollected taxes and interest and penalties as delinquent. These amounts are not expected to be collected within the first 60 days of the following fiscal year.

C. Determine the amount of property tax revenue recognized during the current year in the General Fund and at the government-wide level.

Solutions

Expert Solution

Solution:

Given data,

1.Levied property taxes of $6,610,000, of which 2 percent is estimated to be uncollectible.

2.Collected current property taxes amounting to $5,985,000.

3.Collected $54,000 in delinquent taxes and $4,800 in interest and penalties on the delinquent taxes. These amounts had been recorded as Deferred Inflows of Resources in the prior year.

4.Imposed penalties and interest in the amount of $7,000 but only expects to collect $6,200 of that amount.

5.Reclassified uncollected taxes and interest and penalties as delinquent. These amounts are not expected to be collected within the first 60 days of the following fiscal year.

From the given data we need to find the amount of property tax revenue recognized during the current year in the General Fund and at the government-wide level.

Now solution:

(c). The amount of property tax revenue recognized during the current year in the General Fund and at the government-wide level :

Property taxes levied (Net of estimated uncollectible) :  

= (Levied property taxes of $6,610,000) - (2% percent is estimated to be uncollectible)

=  $6,610,000 - (2% -of $6,610,000)

=  $6,610,000 - $132,200

= $6,477,800

Property taxes levied (Net of estimated uncollectible) = $6,477,800

The amount of property tax revenue recognized during the current year in the General Fund and at the government-wide level  is $6,477,800

ekkarill92 answered 2 years ago
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