(Multiple choice: mini-problems)

The following information relates to questions 1, 2, and 3. A village levied property taxes in the amount of $\$ 800,000$ for calendar year 2004. By year-end, the village had collected $\$ 770,000$. It expected to collect $\$ 20,000$ more in January and February of 2005 and the remaining $\$ 10,000$ after February but before September 2005. Answer the following questions regarding the fund financial statements for the General Fund at December 31, 2004, and for the calendar year 2004 .

1. What amount of property tax revenues should be recognized for calendar year 2004 ?

a. $\$ 770,000$

b. $\$ 780,000$

c. $\$ 790,000$

d. $\$ 800,000$

2. What amount of property taxes receivable should be reported at December 31, 2004?

a. $\$ 0$

b. $\$ 10,000$

c. $\$ 20,000$

d. $\$ 30,000$

3. What amount of deferred property tax revenues should be reported at December 31, 2004?

a. $\$ 0$

b. $\$ 10,000$

c. $\$ 20,000$

d. $\$ 30,000$

4. A city operates on a calendar year basis. On April 1, 2004, the city issues general obligation bonds in the amount of $\$ 1,000,000$ to build a new city hall. The debt is to be paid off at the rate of $\$ 100,000$ a year, with interest of 6 percent per annum on the outstanding debt, starting April 1, 2005. Although it maintains a Debt Service Fund, it has not transferred any resources to that fund to pay any interest or principal on the debt. When it prepares its governmental fund financial statements as of December 31, 2004, how much should the city report as Debt Service Fund expenditures?

a. $\$ 0$

b. $\$ 45,000$

c. $\$ 60,000$

d. $\$ 120,000$

5. Assume the same set of facts as in problem 4, except that the debt had been issued by the Water Enterprise Fund to extend water mains. When it prepares its proprietary fund financial statements, how much should the city report as interest expense?

a. $\$ 0$

b. $\$ 45,000$

c. $\$ 60,000$

d. $\$ 120,000$