Consider the Following Events

question 29

Essay

Consider the following events:
a.A portion of the property tax levied was directly earmarked for, and previously recorded in, the Debt Service fund. Of these property taxes, $6,600 was previously reclassified as delinquent. From the delinquent taxes, $5,000 is now collected, with the balance considered uncollectible. An allowance for uncollectible delinquent of $2,000 existed.
b.Previously deferred property taxes amounting to $50,000 will be subjected to collection during the current year. A 4% allowance is to be created to cover uncollectible amounts.
c.The state has remitted $45,000 as the municipality's portion of a shared sales tax. No receivable had previously been recorded. The amount is to be used for debt service and is to be recorded directly in that fund.
d.The General Fund transferred $80,000 to the Debt Service Fund, $70,000 for serial bond principal retirement, and $10,000 for interest payment.
e.A check for $110,000 is sent by the Debt Service Fund to the fiscal agent who handles the principal and interest payments. The amount covers $70,000 for matured bond principal and $40,000 for interest due.f. The fiscal agent later reports that all payments for matured principal and interest mentioned in item e above have been made.Required:Prepare the journal entries that would be made in a municipality's Debt Service Fund for each of the following events:

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Definitions:

High Tax Rates

Elevated levies imposed by a government on the income or profit of individuals and businesses, which can affect investment decisions and economic growth.