Ben City Maintains Its Books and Records in a Manner

question 7

Essay

Ben City maintains its books and records in a manner that facilitates the preparation of fund financial statements. Prepare all necessary journal entries to record the following events related to property tax revenues for the year ended December 31, 2017. The city has adopted the 60-day rule for property tax revenue recognition.
a. On January 3, 2017 the city council levied property taxes of $2 million to support general government operations, due in two equal installments on June 20 and December 20, 2017. The property taxes were levied to finance the 2017 budget, which had been adopted on November 3, 2016. Historically 2 percent of property taxes are uncollectible.
b. The city collected the following amounts related to property taxes
Delinquent 2016 taxes collected in January 2017 $ 22,000
Delinquent 2016 taxes collected in March 2017 $ 25,000
2017 taxes collected in June 2017 $ 1,080
2017 taxes collected in December 2017 $ 800,000
Delinquent 2017 taxes collected in January 2018 $ 20,000
Delinquent 2017 taxes collected in March 2018 $ 30,000
c. Property taxes due in 2017 but uncollected by the December due date were reclassified as delinquent.
d. $4,000 of 2015 taxes were written off during 2017.

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Definitions:

Nature

The phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth.

Nurture

The influence of external factors after conception, e.g., the product of exposure, experience, and learning on an individual.

Instinct

An ingrained behavior observed in animals that consistently occurs in reaction to designated stimuli.

Drive-Reduction Theory

A psychological theory suggesting that motivation arises from biological needs driving an individual to act in ways that reduce drives and achieve homeostasis.