Reference no: EM133178624

Question - The following transactions occurred in the General Fund of Smyth County. Prepare the journal entry(s) as instructed for each. Unless otherwise stated, assume each item is independent of the other entries.

1. Smyth County was able to get a Tax Anticipation Note that was secured by the counties power to tax. The county borrowed $950,000 and planned to repay the loan and the 4% interest as tax collections begin to exceed current disbursements for the year. Record the entry when the note was taken and the later repayment of the note payable, assuming repayment occurred at the end of the 3rd month after borrowing the money.

2. The budgeted revenue from property taxes was $6,664,000 for Smyth County. Assume that 2 percent of the taxes levied are estimated to be uncollectible due to local economic conditions. - Record the entry when the tax is levied

3. On April 3rd, the Mayor's office of Smith County ordered furniture in the amount of $15,000. On May 15th, the furniture was delivered, and the invoice was for $14,800. Record the entries for both dates.

4. Upon examining the revenues and expenditures to date, the governing board decided to amend the budget. The revenue budget needs to be decreased by $85,000 and the appropriations should be increased by $140,000. - Record the amendments to the budget when legally approved

5. A review of the Tax Receivable subsidiary ledger indicates the following:

90% of the taxes receivable from 2 above were received before year end

5% were expected to be received within 60 days of year end

All unreceived taxes were reclassified to the status of delinquent

6. The treasurer of Smyth County approved the write-off of delinquent taxes from 2023 totaling $18,000 and related interest and penalties of $1,800. - Record the write-off of uncollectible delinquent taxes.