Business, 05.02.2021 23:40 pum9roseslump

During the current year, the Town of Salo Alto recorded the following transactions related to its property taxes: Levied property taxes of $3,300,000, of which 2 percent is estimated to be uncollectible. Collected current property taxes amounting to $2,987,500. Collected $26,500 in delinquent taxes and $2,400 in interest and penalties on the delinquent taxes. These amounts had been recorded as Deferred Inflows of Resources in the prior year. Imposed penalties and interest in the amount of $3,750 but only expects to collect $3,100 of that amount. None is expected to be collected this year or within 30 days of year-end. Reclassified uncollected taxes as delinquent. These amounts are not expected to be collected within the first 60 days of the following fiscal year.

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Answer from: tylorroundy

Question Completion:

Prepare the journal entries.

Town of Salo Alto

Journal Entries:

Debit Property Taxes Receivable $3,300,000

Credit Unearned Property Taxes $3,300,000

To record the levying of property taxes.

Debit Uncollectible Expense $66,000

Credit Allowance for Uncollectible Property Taxes $66,000

To record the 2% allowance for uncollectible taxes.

Debit Cash $2,987,500

Credit Property Taxes Receivable $2,987,500

To record the collection of current property taxes.

Debit Cash $28,900

Credit Deferred Inflows of Resources $26,500

Credit Interest and Penalties $2,400

To record the collection of delinquent taxes with interest and penalties.

Debit Penalties and Interest Receivable $3,750

Credit Interest and Penalties $3,100

Credit Allowance for uncollectible $650

To record penalties and interest imposed.

Debit Deferred Inflows of Resources $312,500

Credit Property Taxes Receivable $312,500

To re-classify uncollected taxes as delinquent.

Explanation:

The ASC 606, as applicable to GASB, specifies when property tax revenues should be recognized in government-wide financial statements. Governmental revenue, e.g. property tax revenue, should be considered as revenue in the current period if it can be collected within that period or sixty days after the current period. If it cannot be so collected, it needs to be re-classified as delinquent.

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d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

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The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

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