Question

Prepare journal entries, as appropriate, to record these transactions. (We suggest you post the journal entries to general ledger T-accounts.) Note: The Croton City continuing problem is introduced in Chapter 3 on page 3-32. You should review the scenario in Chapter 3 before preparing the journal entries for the General Fund in this chapter.

Public safety $350
Public works 250
Parks 100

1. Of the $800 in property taxes receivable at January 1, $780 was collected in cash. The remaining $20 was written off as uncollectible. Deferred property taxes at the beginning of the year were recognized as revenue ($300).
2. Accrued salaries from the previous year ($700) were paid.
3. Property taxes in the amount of $9,030 were levied in order to provide revenues of $9,000. Tax bills were sent to the property owners. An allowance for uncollectible taxes was established.
4. During the year, property taxes of $8,100 were collected in cash.
5. The state collects personal income taxes on behalf of the city. During the year, Croton received personal income taxes of $4,600 from the state.
6. The Parks Department collected $700 in recreation fees during the year.
7. Croton paid salaries of $13,600, charging the salary appropriations as follows: Public safety $6,700, Public works 4700, Parks 2,200
8. The state sent the city a check for $1,000 to finance a special public safety program, stipulating that the resources could be used at any time during 2019 or 2020. The $6,700 in public safety salaries paid in the previous transaction includes $800 of salaries for this program, so $200 remains available for spending on the program in 2020.
9. Unpaid salaries at year-end (to be paid during the first week of 2020) were as follows: Public safety $350, Public works 250, Parks 100
10. At year-end, the uncollected property taxes were declared delinquent. The existing allowance for uncollectible taxes is reclassified to delinquent. Croton’s director of finance estimated that $500 of the uncollected taxes would be collected in January and February 2020 and $400 would be collected during the rest of 2020.
11. In January 2020, the state advised Croton that the state held $500 in personal income taxes on the city’s behalf and that it would send the taxes to Croton by February 10. It also told Croton that it was likely that, by April 30, Croton would receive an additional $200 of taxes with final returns, but that tax refunds would probably be $300. (Remember that “available” for income taxes is defined as taxes expected to be collected within 120 days after the end of the calendar year.)
12. Police officers who retired at the end of 2019 will be paid $10 for unused vacation pay on January 6, 2020

Ref. Description Debit Credit 1 Cash To record receipt of cash and write-off of uncollectible receivable. To recognize previously deferred property tax revenues. ► 2 ► 3 Revenues - property taxes ► ► 4 5 6 7 Expenditures - public saftey salaries Expenditures - public works salaries 00 >

Answer 1

Cash	780
Written of uncollectible property tax	20
To property tax receivable		800
(being propoerty tax receivable at begg of year received)
Deferred property tax	300
To property tax revenue		300
(being deferred property tax being unearned are earned in current year and recognised as revenue)
Accrued salaries	700
To Cash		700
(being accrued salaries paid off)
Accounts Receivables	9000
To property tax revenue		9000
(being property tax bills raised)
Allowance for uncollectibles-property tax	225
To accounts receivables		225
Cash	8100
To accounts receivable		8100
(being property tax collected in cash)
Cash	4600
To income tax revenue		4600
(being income tax revenue received from cash)
Cash	700
To Park Recreation fees revenue		700
(being cash collected from parks)
Public safety salaries	6500
Advance Public safety salaries	200
Public work salaries	4700
Park salaries	2200
To cash		12900
To accrued salaries		700
(being salaries paid)
Written of uncollectible property tax	400
To Allowance for uncollectibles-property tax		225
To Accounts receivable		175
(being written off uncollectible debt)
Property Tax revenue	500
To deferred revenue		500
Unused valaction pay expenses	10
To Unused vacation pay payable		10
(Being vacation pay payable)
Income tax recivable	500
To income tax revenue		500
(being income tax receivable)
Accrued income tax	200
To income tax revenue		200
Refund on income tax	300
To accrued refund liability		300