Question

Question 3 In its General Fund balance sheet at December 31, 2019, Marathon City reported Property taxes receivable of $40,000, deferred property tax revenues of $15,000, and an allowance for uncollectible taxes of $O. At the start of year 2020, Marathon City made the following journal entry to record its property tax levy Property taxes receivable 950,000 Allowance for refunds and uncolfectible taxes Revenues property taxes During the year 2020, the city collected all the property taxes receivable collected $920,000 of the against the allowance account. On December 31, 2020, the Marathon City finance director made the following determinations regarding the property taxes outstanding at that date 10,000 940,000 outstanding at December 31, 2019. It also receivables recognized at the beginning of 2020 and wrote off $6,000 of receivables outstanding property taxes would be collected, so there was no need for the allowance for uncollectible property taxes. 2. The City would collect about $15,000 of the outstanding property taxes receivable during the first 60 days of 2021 and the remainder during the latter part of 2021. Required: Calculate how much property tax revenues Marathon City should recognize in 2020.

Answer 1

Calculation of Property tax revenues for Marathon City
Deferred Property Tax Revenue	$ 15,000
Property Taxes Receivable ( $ 950,000 - $ 6,000)	$ 944,000
Total Property Tax Revenue for 2020	$ 959,000