Exam II General Funds
Bloodworth declares bankruptcy, owing the County $2,000 in property taxes. The County writes off the unpaid amount as uncollectible.
Dbt: Allowance refund 2,000 Cr: Property Taxes Receivable 2,000
During the year, taxpayers pay a total of $750,000 in property taxes.
Dbt: Cash 750,000 Cr: Property Taxes Receivable 750,000
At year-end, the County declares all unpaid property taxes to be delinquent.
Dbt: Property Taxes Delinquent 50,000 Cr: Property Taxes Receivable 50,000
Prepare entries to record the following transactions and events related to Colfax County's tax revenues for the year beginning January 1, 2019: To raise property tax revenue of $800,000, the County bills its property owners a total of $802,000, providing $2,000 for uncollectible and refundable taxes.
Dbt: Property Taxes Receivables 802,000 Cr: Revenues - Property Taxes 800,000 Cr: Allowance for Refunds & Uncollectable taxes 2,000
To prepare financial statements for the year, the County comptroller estimates that Colfax will receive $20,000 in delinquent 2019 property taxes before the end of February, 2020. The other delinquent taxes will trickle in later in 2020.
Dbt: Revenue-Property Taxes 30,000 (50k-20k) Cr: Deferred Revenue 30,000
What is a general fund?
The operating fund of the governmental unit Records Significant Revenues: Taxes; Tickets; Fines; Licenses Records Significant Expenditures: Police; Education; Fire Dept.
