E17-8 Computation of Revenues Reported on the Statement of Revenues, Expenditure
ID: 2524444 • Letter: E
Question
E17-8 Computation of Revenues Reported on the Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund LO 17-7 Gilbert City had the following transactions involving resource inflows into its general fund for the year ended June 30, 20X8: 1. The general fund levied $3,000,000 of property taxes in July 20X7. The city estimated that 2 percent of the levy would be uncollectible and that S180,000 of the levy would not be collected until after August 2. On April 1, 20X8, the general fund received $53,000 repayment of an advance made to the internal 3. During the year ended June 30, 20X8, the general fund received $2,800,000 of the property taxes 4. The general fund received S265,000 in grant monies from the state to be used solely to acquire 31, 20X8 service fund. Interest on the advance of $1,590 also was received levied in transaction (1). computer equipment. During March 20X8, the general fund acquired computer equipment using $235,000 of the grant. The city has not yet determined the use of the remainder of the grant. 5. During the year ended June 30, 20X8, the general fund received $135,000 from the state as its portion 6. In July 20X7, the general fund borrowed $880,000 from a local bank using the property tax levy as 7. In February 20X8, a terminated debt service fund transferred $39,000 to the general fund. The $39,000 8. On July 1, 20X7, the general fund estimated that it would receive $70,000 from the sale of liquor of the sales tax. At June 30, 20X8, the state owed the general fund an additional $30,000 of sales taxes. The general fund does not expect to have the $30,000 available until early August 20X8. collateral. The loan was repaid in September 20X7 with the proceeds from property tax collections. represented excess resources left in the debt service fund after a general long-term debt obligation had been paid in full licenses during the fiscal year ended June 30, 20x8. For the year ended June 30, 20X8, $62,000 had been received from liquor license sales 9. The general fund received S15,000 in October 20X7 from one of the city's special revenue funds. The amount received represented a reimbursement for an expenditure of the special revenue fund that the city's general fund paid. 10. In July 20X7, the general fund collected $82,000 of delinquent property taxes that had been classified as delinquent on June 30, 20X7. In the entry to record the property tax levy in July 20X6, the general fund estimated that it would collect all property tax revenues by July 31, 20x7Explanation / Answer
Gilbert city
Revenue reported by the general fund
For the year ended June 30, 20X8
(1) The amount reported for property tax revenue, $2763600 is computed in the following
way:
Levy $3,000,000
Less:
Property taxes expected to be collected after August 31,
20X8 – the 60 day rule for property tax (180,000)
collections – report in balance sheet as deferred
revenue at June 30, 20X8, net of $2,000
allowance for uncollectible taxes (2%)
The allowance for uncollectible taxes on this period’s
revenue [($3,000,000 - $180,000 deferred) X .02] (56400)
Property tax revenue for year ended June 30, 20X8 $2763600
Property tax revenue 2763600 Interest revenue on advance 1590 Grant revenue to acquire computer equipment 235000 Sales tax revenue 135000 Liquor license revenue 62000 Total revenue reported 3197190Related Questions
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