Question

4 3. 13. T, F. GASB Statement No. 33 Accounting and financial Reporting for Non-exchange Transactions provides a very useful guide as to when to recognize revenue in government-wide financial statements 14. Under the modified accrual basis of accounting, revenues cannot be recognized a. Until cash is collected b. Unless they will be collected within 60 days c. Until they are subject to accrual d. Until they are measurable and available e. None of the above. 15. "Available" (as in measurable and available") means a. Available to finance expenditure of the current period b. Subject to accrual c. Collectible d. Available for appropriations e. None of the above PART II SHORT PROBLEMS (60 Points) 1. For the Fiscal Year 2017, Twin City levied $500 million in property Taxes. It collected taxe applicable to the City as follows: June 1, through September 30, 2017 $20 million October 1 through November 30, 2017 $460 million December 2017 The City recognizes that $10 million will not be collectible. $ 10 million

Answer 1

1. a, b, c

xx/xx/17.Taxes receivable debited Taxes Collected 500 million.

1/6/17 Bank debited to Taxes Receivable 20m

1/10/17 Bank debited to Taxes Receivable 460m

xx/12/17 Bank debited to Taxes Receivable 10m

31/12/17 Bad debts debited to Taxes Receivable 10m

31/12/17 Taxes Collected 500m debited to Bad debts 10m, debited to General Fund 490m.

.

2.

General Obligation Bond/Bond Dr 100,000,000

Securities Premium Dr 600,000

To Bank Account Cr 100,600,000