Record the property tax revenue deferred of $62,000 that is required by the GASB. The current...

Record the property tax revenue deferred of $62,000 that is required by the GASB. The current property taxes receivable of $500,000 less the revenue deferred of $62,000 in K are classified as delinquent along with the amount that is required by the GASB. On Dec. 2, purchase orders were issued for supplies in the amount of $440,000. On December 15, supplies, relating to all of the prior year purchase orders ($400,000), were received along with invoices amounting to $397,000. Received 6% interest revenue on the Investments (beg. Balance) in cash. Record the closing entry. Remember that the actual revenues is closed by a debit with a credit to Estimated Revenues and the balance to Fund Balance. Record the closing entry. Remember that the actual expenditures and the balance in Encumbrances is closed by a credit with a debit to Appropriations and the balance to Fund Balance. Prepare a 12/31/14 Balance Sheet assuming the beginning balances and journal entries A to Q and the books have been closed out to Fund Balance.

Solutions

Expert Solution

Step:1

Property taxes receivable A/C DR. 500000

To Deferred revenue A/C 62000

To Delinquent taxes A/C 438000

Step 2 : Interest on Investments

Cash A/C (440000*6/100) DR. 26400

To Estimated Revenue 26400

Estimated Revenue A/C DR. 26400

To Interest on Allowances for supply A/C 2580

To Deferred Revenue A/C 23820

(397000*6/100)

Interest on Allowances for Supply A/C DR. 2580

Profiit & Loss Appropriation A/C 2580

Step 3 :

Profit & Loss Appropriation A/C DR. 85820

(62000+23820)

Deferred Revenue A/C 85820

ekkarill92 answered 11 months ago

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