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     34.     (Entries to prepare government-wide statements - property tax revenue deferral)

When it prepared its financial statements for calendar year 2007, Hot Town assumed that it would collect all unpaid property taxes during the first 60 days of 2008. As a result, no deferred revenues were reported. The following facts pertain to the property tax revenues for calendar years 2008 and 2009. Make adjusting entries needed to prepare both the fund-level and the government-wide financial statements for 2008 and 2009.

     
                                    2008      2009
          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.

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