Reference no: EM132504768

Question -

A) The City of Riverside levied property taxes in the amount of $20,000,000. The taxes were levied July 1, 2019 for the fiscal year ended June 30, 2020. During the year ended June 30, 2020, $17,800,000 in property taxes were collected from this levy. It is estimated that $940,000 will be collected during the next 60 days, $1,050,000 will be collected more than 60 days after June 30, 2020, and $210,000 will never be collected.

When preparing the government-wide financial statements, how much property tax revenue should be recognized for the year ended June 30, 2020?

B) In its Statement of Net Position, a government reported:

Assets of $110 million, including $30 million in capital assets (net), and

Liabilities of $40 million, including long-term debt of $10 million, all related to capital asset acquisition.

The government also reported $15 million of net assets were restricted for payment of debt service. The government's Unrestricted Net Position would be reported as:

C) On October 1, 2019, the City of Mizner issued $6,000,000 in 4%, general obligation bonds at 101 for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $5,968,750 was used to construct the addition, which was completed prior to June 30, 2020. The remaining funds were transferred to the debt service fund. The bonds were dated October 1, 2019, and paid interest on April 1 and October 1. The first of 20 annual principal payments of $250,000 is due October 1, 2020. The fiscal year for Mizner is July 1- June 30.

How would the construction costs of $5,968,750 be reported at year-end?