Question

Garden City has calculated that General Fund property tax revenues of $4,608,000 are required for the current fiscal year. Over the past several years, the city has collected 96% of all property taxes levied. The city levied property taxes in the amount that will generate the required $4,608,000. Which of the following general journal entries would correctly record the property tax levy?

Answer 1

The correct journal entry to record the property tax levy is to debit Property Tax Receivable - General Fund with $4,608,000 and credit Property Tax Revenue with $4,608,000.

Step-by-step explanation:

The journal entry to correctly record the property tax levy would be as follows:

1. Debit: Property Tax Receivable - General Fund $4,608,000
2. Credit: Property Tax Revenue $4,608,000

This journal entry records the increase in property tax receivable on the debit side, representing the amount of property taxes levied, and the corresponding increase in property tax revenue on the credit side. It reflects the required $4,608,000 in property tax revenues for the current fiscal year.