Reference no: EM133206677
Assignment - Government and Not for Profit Accounting Paper
Description - Explain why the journal entries that you prepared for Parts A, B, and C are appropriate. Cite your sources for why you prepared the journal entries the way that you did for each of the parts below.
Part A - On July 1, 2017, the beginning of its fiscal year, Johnson County recorded gross property tax levies of $4,200,000. The county estimated that 5 percent of the taxes levied would be uncollectible. As of April 30, 2018, the due date for all property taxes, the county had collected $3,900,000 in taxes. The county imposed penalties and interest in the amount of $14,500, but only expects to collect $12,800 of that amount. At the end of the fiscal year (June 30, 2018) the county had collected $53,000 in delinquent taxes and $4,800 in interest and penalties on the delinquent taxes.
Required - Prepare journal entries to record the tax levy on July 1, 2017 in the General Fund.
Part B - The City of Duncanville collects its annual property taxes late in its fiscal year. Consequently, each year it must finance part of its operating budget using tax anticipation notes. The notes are repaid upon collection of property taxes. On April 1, 2017, the city estimated that it will require $2,500,000 to finance governmental activities for the remainder of the 2017 fiscal year. On that date, it had $770,000 of cash on hand and $830,000 of current liabilities. Collections for the remainder of FY 2017 from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at $1,100,000.
Required - Calculate the estimated amount of tax anticipation financing that will be required for the remainder of FY 2017.
Part C - At the end of fiscal year 2017, the City of Georgetown's General Fund pre-adjusting trial balance showed the following balances for operating and budgetary accounts and fund balance accounts.
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Debits
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Credits
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Appropriations
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$6,224,000
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Estimated Other Financing Uses
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2,776,000
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Estimated Revenues
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$7,997,000
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Encumbrances
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0
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Expenditures
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6,192,000
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Other Financing Uses
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2,770,000
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Revenues
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7,980,000
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Budgetary Fund Balance
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1,003,000
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Fund Balance-Nonspendable-Inventory of Supplies
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140,000
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Fund Balance-Unassigned
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1,990,000
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Required - Prepare the closing entries for the year.