Joined: 20 Aug 2009 Location: United States
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Posted: 17 Sep 2009 at 20:07 | IP Logged
this question is unclear as far as dates are concerned.
Is that a confusion only with me or someone else also??
Kindly solve and let me know.
The following information pertains to property taxes
levied by Oak City for the calendar year 1992:
Collections during 1992 $500,000
Expected collections during the first 60 days of 1993
100,000
Expected collections during the balance of 1993 60,000
Expected collections during January 1994 30,000
Estimated to be uncollectible ; 10,000
Total levy $700,000
What amount should Oak report for 1992 net property tax
revenues in its fund financial statements
Joined: 14 Sep 2009 Location: United States
Online Status: Offline Posts: 183
Posted: 23 Sep 2009 at 18:54 | IP Logged
Because its derived tax, revenue is recognized when measurable and available. The answer is 600 K, 500 K collected during the year and 100k Collectible within 60 days of financial year end.
__________________ Becker all the way!
FAR- 10/09/09-88
AUD- 11/24/09-91
REG- 01/22/2010- 94
BEC- 03/01/2010-90
I came, I saw, I calculated!
Joined: 29 May 2008
Online Status: Offline Posts: 115
Posted: 23 Sep 2009 at 19:46 | IP Logged
Xalina wrote:
Because its derived tax, revenue is recognized when measurable and available. The answer is 600 K, 500 K collected during the year and 100k Collectible within 60 days of financial year end.
Joined: 14 Sep 2009 Location: United States
Online Status: Offline Posts: 183
Posted: 24 Sep 2009 at 21:54 | IP Logged
Estimated uncollected taxes would enter into the revenue calculation
only at the beginning of the period as you are making an estimate as to
how much will be collected. This question is after the phase as you will
start the calculation with the actual collection made, thus there is no
reason the take the net receivable as you are using actual amounts.
__________________ Becker all the way!
FAR- 10/09/09-88
AUD- 11/24/09-91
REG- 01/22/2010- 94
BEC- 03/01/2010-90
I came, I saw, I calculated!
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Topic: government accounting
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