Journal entries--property tax accounting Prepare entries to record the following

Question

Journal entries--property tax accounting

Prepare entries to record the following transactions and events related to Mason County property taxes for the year beginning January 1, 2015.

a) To raise property tax revenues of $940,000, the County sends bills to property owners totaling $945,000. This will provide a $5,000 allowance for uncollectible taxes. The County makes no provision for possible tax refunds.

b) Shortly after receiving his $5,000 tax bill, Harry appeals his assessment. His tax bill is reduced by $1,000. He then pays the remaining $4,000 that is due.

c) Mason County receives $900,000 in cash from taxpayers who make timely payment on their taxes.

d) Brown's home is destroyed by a fire; he declares bankruptcy and the County writes off his $3,000 tax bill as uncollectible.

e) Smith and Wesson, who received bill totaling $8,000 are unable to pay on time. The County bills them $300 for interest. They subsequently pay the taxes plus interest.

f) At year end, the County declares all unpaid property taxes to be delinquent. Interest and penalties amounting to $1,500 is assessed against the delinquent taxpayers.

g) The County decides to increase its Allowance for Uncollectible Taxes by $3,000

I ALREADY HAVE A-E, I JUST NEED F AND G ANSWERED, THANK YOU IN ADVANCE

Explanation / Answer

f) Property tax receivable -deliquent 29,000 Property tax receivable 29,000 Interest and penalties-receivable 1,500 Revenue interest and penalties 1,500 Allowance for funds and uncollectible taxes 1,000 Allowance for funds and uncollectible taxes -deliquent 1,000 g) Revenue- property taxes 3,000 Allowance for funds and uncollectible taxes -deliquent 3,000

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