Question

The Town of Quincy's fiscal year ends on June 30. The following data relate to the property tax levy for the fiscal year ended June 30, 2020. Prepare journal entries for each of the dates as indicated.

a. The balance in Deferred Inflows-Property Taxes was $48,000 at the end of the previous year. This was recognized as revenue in the current year in a reversing journal entry.
b. On July 1,2019 , property taxes in the amount of $8,200,000 were levied. It was estimated that 0.5 percent would be uncollectible. The property taxes were intended to finance the expenditures for the year ended June 30, 2020.
c. October 31,$4,200,000 in property taxes were collected.
d. December 31,$3,700,000 in additional property taxes were collected.
e. Receivables totaling $8,700 were deemed to be uncollectible and written off.
f. On June 30, $37,000 was moved from Revenues Control to Deferred Inflows, because it was not expected to be collected within 60 days.

Answer 1

This question involves preparing journal entries for property tax transactions in the Town of Quincy's government accounting records, including recognizing revenue, levying taxes, collecting taxes, writing off uncollectibles, and adjusting deferred revenue.

Step-by-step explanation:

The student's question relates to making journal entries for property tax transactions for the Town of Quincy in its governmental accounting records. The specific journal entries to be recorded include the recognition of property tax revenue, the levy of property taxes, collection of property taxes, write-offs for uncollectible taxes, and the adjustment for taxes not expected to be collected within the specified timeframe.

• Reversing journal entry to recognize deferred property tax revenue from the previous year.
• Levy of property taxes for the current fiscal year with an allowance for uncollectible amounts.
• Collection of property taxes at different points of the fiscal year (October 31 and December 31).
• Write-off of uncollectible property taxes.
• Adjustment for taxes not expected to be collected within 60 days to deferred inflows.

The student will need to understand the concepts of property tax levy, collection, write-offs, and the recognition of revenue in governmental accounting. Including details about municipality reliance on property tax revenue and the broader context of federal, state, and local government revenue sources can provide further assistance.