property tax transactions on july 10 the town of salt flats utah levied property tax 4373036

Property Tax Transactions On July 10, the town of Salt Flats, Utah levied property taxes of $30,000,000. Based on past experience, town management estimated that the town will not collect 4 percent of the taxes. Taxes were due September 30, but $9,009,000 was received before that date from taxpayers taking advantage of the 1 percent discount for early payment. Salt Flats treats discounts given as a reduction of revenues. On January 1, outstanding taxes due of $2,000,000 were declared delinquent; Salt Flats estimates that $200,000 of delinquent taxes will be collected early next year. By the end of the fiscal year, $300,000 of the delinquent taxes were collected and the rest were written off. No taxes receivable, either current or delinquent, existed at the beginning of the fiscal year. Actual expenditures of $25,000,000 equaled appropriations. All expenditures were cash transactions. The budget entry included $29,000,000 of estimated revenues. After the budget entry, the general fund balance was $5,200,000. Required a. Prepare the journal entries to record the property tax transactions and the expenditures. b. State the balance sheet accounts and their respective balances relating to the property tax levy and collections as of the end of the fiscal year. Assume an $850,000 cash balance at the beginning of the fiscal year. View Solution:
Property Tax Transactions On July 10 the town of Salt

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