anced Accounting II Chapter 17 Introduction to Fund Accounting Problem 1. The fo
ID: 2523158 • Letter: A
Question
anced Accounting II Chapter 17 Introduction to Fund Accounting Problem 1. The following selected account balances for the City of Hampton on January 1, 2015 are listed below: Delinquent Taxes Receivable Allowance for Uncollectible Delinquent Taxes Tax Liens Receivable Allowance for Uncollectible Tax Liens $34,000 Dr. 11,000 Cr 12,000 Dr. 5,000 Cr. Instructions Record the following transactions that occurred during 2015: a. Current property taxes are levied at $750,000 with a 4% allowance for uncollectible property taxes. b. Property to which tax liens apply is sold for $6,000 and the account is closed. c. Current property taxes are collected in the amount of $702,000. d. Previous delinquent property taxes are converted to tax liens and the current uncollected property taxes are considered delinquentExplanation / Answer
a. Taxes Receivable - Current $ 750,000
Allowance for Uncollectible Current Taxes $ 30,000
Revenue $ 720,000
b. Cash $ 6,000
Tax Liens Receivable $ 6,000
Allowance for Uncollectible Tax Liens $ 5,000
Revenue $ 1,000
Tax Liens Receivable $ 6,000
c. Cash $ 702,000
Taxes Receivable - Current $ 702,000
d. Tax Liens Receivable $ 34,000
Taxes Receivable - Delinquent $ 34,000
Allowance for Uncollectible Delinquent Taxes $ 11,000
Allowance for Uncollectible Tax Liens $ 11,000
Taxes Receivable - Delinquent ($750,000 - $702,000) $ 48,000
Taxes Receivable - Current $ 48,000
Allowance for Uncollectible Current Taxes $ 30,000
Allowance for Uncollectible Delinquent Taxes $ 30,000
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