Question

Check my wc QE 4-4 Journal Entries The Town of Quincy's fiscal year ends on June 30. The following data relate to the property tax levy for the fiscal year ended June 30, 2017 a. The balance in Deferred Inflows--Property Taxes was $65,000 at the end of the previous year. This was recognized as revenue in the current year in a reversing journal entry. b. On July 1, 2016. property taxes in the amount of $8,500,000 were levied. It was estimated that 0.5 percent would be uncollectible. The property taxes were intended to finance the expenditures for the year ended June 30, 2017 c. October 31, $4,600,000 in property taxes were collected d. December 31, $3,700,000 in additional property taxes were collected. e. Receivables totaling $8,700 were deemed to be uncollectible and written off f. On June 30, $73,000 was moved from Revenues Control to Deferred Inflows, because it was not expected to be collected within 60 days. Prepare journal entries for each of the event as indicated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < Prev 25 of 25 Next o search

Answer 1

The required journal entries for the given events are shown as follows:-

Journal Entries (Amounts in $)

Transaction	General Journal	Debit	Credit
a	Deferred Inflows-Property Taxes	65,000
	Revenues Control		65,000
	(To recognize the revenue)
b	Current Property Taxes Receivable	8,500,000
	Allowance for Uncollectibles (8,500,000*0.5%)		42,500
	Revenues (8,500,000-42,500)		8,457,500
	(To record the current property tax receivable)
c	Cash	4,600,000
	Current Property Taxes Receivable		4,600,000
	(To record the collection of property taxes)
d	Cash	3,700,000
	Current Property Taxes Receivable		3,700,000
	(To record the collection of property taxes)
e	Uncollectible Delinquent Property Taxes	8,700
	Taxes Receivable-Delinquent		8,700
	(To record the uncollectible write off)
f	Revenue Control	73,000
	Deferred Inflows-Property Taxes		73,000
	(To record the deferred taxes)

Working Notes:-

1) Allowance account is credited by 0.5% of total property taxes (8,500,000*0.5%. Property taxes receivable is debited by $8,500,000 and difference is credited to revenue (i.e. 8,500,000 - 42,500 = $8,457,500)