Reference no: EM131703642
Questions: The following information relates to the first three questions in the list that follows. A village levied property taxes in the amount of $800,000 for calendar year 2013. By year-end, the village had collected $775,000. It expected to collect $15,000 more in January and February of 2014 and the remaining $10,000 after February but before September 2014. Answer the following questions regarding the fund financial statements for the General Fund as of December 31, 2013, and for the calendar year 2013.
1. What amount of property tax revenues should be recognized for calendar year 2013?
a. $775,000
b. $785,000
c. $790,000
d. $800,000
2. What amount of property taxes receivable should be reported at December 31, 2013?
a. $0
b. $10,000
c. $15,000
d. $25,000
3. What amount of deferred property tax revenues should be reported at December 31, 2013?
a. $0
b. $10,000
c. $15,000
d. $25,000
4. A city operates on a calendar year basis. On April 1, 2012, the city issues general obligation bonds in the amount of $1,000,000 to build a new city hall. The debt is to be paid off at the rate of $100,000 a year, with interest of 5 percent per annum on the outstanding debt, starting April 1, 2013. Although it maintains a Debt Service Fund, the city has not transferred any resources to that fund to pay any interest or principal on the debt. When it prepares its governmental fund financial statements as of December 31, 2012, how much should the city report as Debt Service Fund expenditures?
a. $0
b. $37,500
c. $50,000
d. $100,000
5. Assume the same set of facts as in the previous problem, except that the debt has been issued by the Water Enterprise Fund to extend water mains. When it prepares its proprietary fund financial statements, how much should the city report as interest expense?
a. $0
b. $37,500
c. $50,000
d. $100,000
6. Nuevo York County maintains the Metro Bus Enterprise Fund to account for the activities of its municipal bus service. The following information is reported in the fund's statement of net position at year-end: Buses and bus garage-$2,500,000; Accumulated depreciation, buses and garage-$1,100,000; Current portion of bonds payable-$250,000; Noncurrent portion of bonds payable-$1,000,000. The bonds were issued to finance acquisition of the buses and the garage. How much should the fund report as Invested in capital assets, net of related debt in the statement of net position?
a. $1,400,000
b. $1,250,000
c. $1,150,000
d. $150,000
7. Thomas Village operates on a calendar year basis. On January 1, 2012, it had outstanding property taxes receivable of $40,000 and deferred property tax revenue of $10,000. On that same date, it levied property taxes of $1,000,000 to cover its 2012 activities. During 2012, it collected the entire $40,000 of receivables that had been outstanding as of January 1, as well as $975,000 against the 2012 levy. With regard to the uncollected 2012 taxes, the village expected to collect $20,000 during the first 60 days of 2013 and the remaining $5,000 during the rest of 2013. How much should Thomas Village recognize as property tax revenues in its General Fund for calendar year 2012?
a. $995,000
b. $1,000,000
c. $1,005,000
d. $1,035,000