Accounting for property taxes

At the start of calendar year 2012, Central City?s records showed the following accounts relative to prior year property taxes:

Property taxes? delinquent??????????.. 52,000,

Allowance for uncollectible taxes? delinquent???. 8,000,

Deferred property tax revenues??????????? 15,000

Prepare journal entries to record the following transactions:

1. To balance its 2012 budget, which requires $ 1,500,000 in property taxes, Central City levies property taxes in the amount of $ 1,515,000, providing an allowance of $ 15,000 for uncollectible accounts.

2. During the year 2012, it collects property taxes as follows:

From prior year delinquent taxes?????????.. 44,000,

From 2012 tax levy ??????????????.. 1,490,000

3. Central City recognizes the $ 15,000 deferred property tax revenues as revenues for 2012.

4. It initiates foreclosure proceedings against the delinquent taxpayer who owed the city $ 8,000. When it does this, it charges the taxpayer a penalty of $ 1,000.

5. An auctioneer sells the foreclosed property for $ 40,000, deducts a fee of $ 3,000, and remits $ 37,000 to the city. The city deposits the check and prepares a voucher for the net amount due to the taxpayer. 6. The city reverses the Allowance for uncollectible taxes? delinquent ($ 8,000) because the lien has been satisfied and all prior year delinquent taxes have been collected.

7. Central City rebates $ 12,000 to taxpayers who had paid their 2012 taxes, but who successfully appealed their tax assessments.

8. At year- end, the city, (a) Declares all unpaid 2012 taxes as delinquent; ,(b) Concludes that there is no need for an allowance for uncollectible accounts; and ,(c) Estimates that $ 15,000 of the delinquent taxes will be collected in the first 60 days of calendar year 2013.

At the start of calendar year 2012, Central City's records showed the following accounts relative to prior year property taxes: Property taxes delinquent................................ 52,000, Allowance for uncollectible taxes delinquent.......... 8,000, Deferred property tax revenues................................. 15,000 Prepare journal entries to record the following transactions: 1. To balance its 2012 budget, which requires $ 1,500,000 in property taxes, Central City levies property taxes in the amount of $ 1,515,000, providing an allowance of $ 15,000 for uncollectible accounts. 2. During the year 2012, it collects property taxes as follows: From prior year delinquent taxes............................. From 2012 tax levy ............................................ 44,000, 1,490,000 3. Central City recognizes the $ 15,000 deferred property tax revenues as revenues for 2012. 4. It initiates foreclosure proceedings against the delinquent taxpayer who owed the city $ 8,000. When it does this, it charges the taxpayer a penalty of $ 1,000. 5. An auctioneer sells the foreclosed property for $ 40,000, deducts a fee of $ 3,000, and remits $ 37,000 to the city. The city deposits the check and prepares a voucher for the net amount due to the taxpayer. 6. The city reverses the Allowance for uncollectible taxes delinquent ($ 8,000) because the lien has been satisfied and all prior year delinquent taxes have been collected. 7. Central City rebates $ 12,000 to taxpayers who had paid their 2012 taxes, but who successfully appealed their tax assessments. 8. At year- end, the city, (a) Declares all unpaid 2012 taxes as delinquent; ,(b) Concludes that there is no need for an allowance for uncollectible accounts; and ,(c) Estimates that $ 15,000 of the delinquent taxes will be collected in the first 60 days of calendar year 2013