Record collection of delinquent taxes interest and penalties

Assignment Help Accounting Basics

Reference no: EM131891240

Problem

On July 1, 2017, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $4,800,000. 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 $4,470,000 in taxes. The county imposed penalties and interest in the amount of $15,100, but only expects to collect $13,100 of that amount. At the end of the fiscal year (June 30, 2018) the county had collected $56,000 in delinquent taxes and $5,400 in interest and penalties on the delinquent taxes.

And Journal Entries:

1. Record the receipt of taxes as of April 30th

2. Record the entry to reclassify the uncollected tax amounts as delinquent.

3. Record Interest and penalties

4. Record the collection of delinquent taxes, interest and penalties.

Reference no: EM131891240

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