Question

A county that did not previously have a property tax levies a property tax for $900,000 on January 1, 2020 for the budget year January 1 to December 31, 2020. The county collected $875,000 during 2020, $20,000 during January 1 through February 28, 2021, and the remaining $5,000 in June 2021. What adjustment is needed to the data reported in the governmental fund financial statements to prepare the government-wide statements

Answer 1

Answer: See explanation

Step-by-step explanation:

The adjustment is needed to the data reported in the governmental fund financial statements to prepare the government-wide statements will be:

Deferred revenues—property taxes

5,000

Revenues—property taxes

5,000

Deferred revenue, in this case refers to the advance payments that a company receives for the goods that are to be delivered in the future.