Question

Accounting for property taxes At the start of calendar year 2019, Central Chy's records showed the following accounts relative to prior year property taxes: Property taxes recevable-delinquent $52,000 Allowance for refunds and uncollectible taxes delinquent 8.000 Deferred revenues-property taxes 15.000 Prepare journal entries to record the following transactions 1. To balance its 2019 budget, which requires 51.500,000 in property taxes, Central Gty levies property taxes in the amount of $1,515,000, providing an allowance of $15,000 for uncollectible accounts 2. During the year 2019. It collects property taxes as follows: From peior year deinquenta 544,000 From 2019 tax levy 1.000 3. Central City recognizes the $15,000 deferred property tax revenues as revenues for 2019 4. It initiates foreclosure proceedings against the delinquent taxpayer who owed the city 58,000, When it does this, it charges the taxpayer penalty of $1,000 5. An auctioneer sells the foreclosed property for $40.000, deducts a fee of $3,000, and reinis 537,000 to the city. The city deposits the check and prepares a voucher for the net amount due to the taxpayer. 6. The city reverses the Allowance for refunds and uncollectible taxes delinquent 158,000) because the lien has been satisfied and all prior year delinquent taxes have been collected

Answer 1

1. Property taxes receivable Debit 1515000 Allowances for refunds and uncollectable taxes credit 15000 Revenues-property taxes credit 1500000 2. Cash debit 1534000 Property taxes receivable delinquent credit 44000 Property taxes receivable credit 1490000 3. Deferred revenues- property taxes debit 15000 Revenues property taxes credit 15000 4. Tax liens receivable debit 9000 Revenues interest and penalties credit 1000 Property taxes receivable delinquent credit 8000 5. Cash debit 37000 Tax liens receivable credit 9000 Vouchers payable credit 28000 6. Allowance for refunds and uncollectible taxes delinquent debit 8000 Revenues property taxes credit 8000 7. allowance for refunds and uncollectible taxes debit 12000 Cash credit 12000 8a. Property taxes receivable delinquent debit 25000 Property taxes receivable credit 25000 8b. Allowance for refunds and uncollectible taxes debit 3000 Property taxes receivable credit 3000 8c. Revenues property taxes debit 10000 Deferred revenues property taxes credit 10000

Answer 2

Accolding to data :- P. NOI following are the journal entries required to record transactions related to property taxes in the books of a city during the Calendar year 9019. Account title & Explanation Debit ($) Credit ( ) 1. Property taxes receivable 1,515,000.00 Allowance for uncollec 15,000.00 -tible taxes Revenues-property taxes 1,500,000.00 to record 2019 property tax Levy) 1,534,000.00 property taxes receivable 44,000.00 delinquent property taxes receivable 1,490,000.00 record collection of Property taxes 13. Cach

P.No.2 3 tax revence 15,000.00 15,000.00 9,000.00 Deffered properly Remenices property taxes revenues to recognize deferred revenues revenue el 2019) Tax liens receivable Revenues interact and penalties property taxes recoivable- delinquent to change penalty for unpaid taxes and reclamify delinquent recoivable. 1,000.00 8,000.00 37,000.00 5. Cach Tax 9,000.00 98,000.00 liens receivable vouchers payable To record recipt of Cash from forclosed property Satisfaction of line.

P.No.3 8,000.00 6l Allowana for uncollectible 8600.00 taxes deliquent Revenues- property taxes O record allowane for encollectible taxes) Allowance for uncollectible taxe 19,000.00 Carh Go recold due to sucessful 12,000.00 Property tax appeals ) 3 25,000.00 properly taxes receivable- deliquot 95,000.00 property taxes receivable fro second unpaid beceivables deliquent (3) Allowances for oncollectible 3,000.00 taxes Revenue Property taxes fro devels, allowane for uncollectible taxes 3,800.00

P.No.4 ص ( 10,000.00 Revenues property taxes Deferred property 10,000.00 taxe revenues to defer revenue for 2014 taxes that are not expected to be collected please give have a positive vote. If you any query please comment below. . you can Thank