loader  Loading... Please wait...

Question(s) / Instruction(s):

42.     (Property tax revenue recognition)     

In its General Fund balance sheet at December 31, 2009, Marathon City reported Property taxes receivable of $40,000 and Deferred property tax revenues of $15,000. At the start of the year 2010, Marathon City made the following journal entry to record its property tax levy:
Property taxes receivable          950,000
Allowance for uncollectible property taxes          10,000
                     Revenues - property taxes                940,000

During the year 2010, the city collected all the property taxes receivable outstanding at December 31, 2009. It also collected $920,000 of the receivables recognized at the beginning of 2010, and wrote off $6,000 of bad debts against the allowance account. On December 31, 2010, the Marathon City finance director made the following determinations regarding the property taxes outstanding at that date:
a.     All outstanding property taxes would be collected, so there was no need for the allowance for uncollectible property taxes.
b.     The City would collect about $15,000 of the outstanding property taxes receivable during the first 60 days of 2011 and the remainder during the latter part of 2011.

Required:     Calculate how much property tax revenues Marathon City should recognize in 2010.

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$2.00

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494