Prepare entries to record the following transactions and events related to Toombs County’s property taxes for the year (ending in June 2023):
a. A city levies property taxes of $4,000,000 for its General Fund but believes that it will not be able to collect 1.5% of those taxes. The County sends bills to property owners.
b. The city offers a 2 percent discount for payment within the discount period. Based on experience, city finance officials estimate that $50,000 of discounts will be taken.
c. Shortly after receiving his $5,000 tax bill, Harold appeals his assessment. His tax bill is reduced by $1,000. He then pays the remaining $4,000 that is due.
d. When the discount period ended, $2,100,000 had been collected and only $42,000 of discounts had been taken.
e. An additional $1,620,000 is collected in property taxes.
f. At year-end, the County declares all unpaid property taxes to be delinquent (note year in account). Interest and penalties amounting to $1,500 is assessed against the delinquent taxpayers and is considered available.
g. The County decides to increase its allowance for uncollectible taxes by $10,000.
h. To prepare financial statements for the year, the County comptroller estimates that Toombs will receive $160,000 in delinquent 2022-23 property taxes before the end of August, 2023. The other delinquent taxes will trickle in later in 2023.
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