C) CH 5

Prepare journal entries, as appropriate, to record these transactions, and post the journal entries to T-accounts.

C5-1.Property taxes were levied in the amount of $1,212,000 in order to provide revenues of $1,200,000. Tax bills

were sent to the property owners.

C5-2.The account of a taxpayer who owed $9,000 was written off as uncollectible.

C5-3.Property taxes of $1,110,000 were collected in cash.

C5-4.At year-end, all uncollected taxes were declared delinquent. The Podunk finance director concluded that all the property taxes would be collected, so there was no need for any allowance for uncollectible taxes. He estimated that $63,000 of the delinquent taxes would be collected in January and February 2017 and that the rest of the taxes would be collected later in 2017.

C5-5.The state collects sales taxes on behalf of all cities in the state. During the year, Podunk received $204,000 in sales taxes from the state. The state also advised Podunk that it would remit an additional $18,000 in sales taxes (from sales made in 2016) by January 20, 2017.

C5-6.Podunk collected parks admission fees of $54,000 during the year.

C5-7.The unpaid vouchers of $105,000 at the beginning of the year were paid.

C5-8.Salaries in the amount of $1,080,000 were paid ($870,000 for the Police Department and $210,000 for the Parks Department).

C5-9.The payroll for the period ended December 31, 2016 which was included in the year 2016, will be paid on January 5, 2017 ($24,000 for the Police Department and $15,000 for the Parks Department).

C5-10.A Police Department sedan accidentally sideswiped a citizen's vehicle in November 2016. Podunk's corporation counsel estimated that the city would ultimately settle the citizen's claim for about $12,000. It usually takes about 18 months to settle cases of this kind.