Exercise 4-19 (Algo) Accounting for Property Taxes (LO 4-1) On July 1 2023, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $4,000,000. The county estimated that 2 percent of the taxes levied would be uncollectible. As of April 30, 2024, the due date for all property taxes, the county had collected $3,710,000 in taxes. During the current fiscal year, the county collected $52,000 in delinquent taxes and $4,600 in interest and penalties on the delinquent taxes. The county imposed penalties and interest in the amount of $14,300 but only expects to collect $12.700 of that amount. At the end of the fiscal year (June 30, 2024), uncollected taxes, interest, and penalties are reclassified. They are not expected to be collected within the first 60 days for the following fiscal year. Required Record entries for the above transactions as stated in the individual statements below, and post corresponding information into the Revenues ledger as appropriate a. Prepare journal entries to record the tax levy on July 2023, in the General Fund (Ignore all entries in the governmental activities Journal) b. Prepare a summary Journal entry to record the collection of current taxes as of April 30. c. Prepare a summary journal entry to record the collection of delinquent taxes, interest, and penalties. (You may assume that these amounts had been designated as Deferred Inflows of Resources) d. Prepare the journal entry necessary to reclassify the uncollected tax amounts as delinquent Assume these taxes are not expected to be collected within 60 days of year-end. e. Prepare the journal entry necessary to record interest and penalties if they are not expected to be collected soon after year-end, tos View transaction list Journal entry worksheet Record the tax levy on July 1, 2023 in the General Fund. Note: Enter debits before credits. Event Debit Credit a General Journal Taxes Receivable Current Allowance for Uncollectible Current Taxes Revenues 4,000,000 80,000 3,920,000 Record entry Clear entry View general journal View transaction list Journal entry worksheet Book rences Record the collection of current taxes as of April 30. Note: Enter debits before credits Event General Journal Debit Credit b 3,710,000 Cash Taxes Receivable Current 371,000 Record entry Clear entry View general journal View transaction list Journal entry worksheet tes Record the reversal of deferred inflows. Note: Enter debits before credits Event General Journal Debit Credit c(2) Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the entry to reclassify the uncollected tax amounts and allowances as delinquent Note: Enter debits before credits Event General Journal Debit Credit d(1) Record entry Clear entry View general journal View transaction list Journal entry worksheet Record interest and penalties if they are not expected to be collected soon after year-end. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Req A to E Req A to E Journal Entries Subsidiary Ledger Show subsidiary detail for the Revenues ledger. RIDGEDALE COUNTY Revenues Ledger Est. Revenues Dr(Cr) Revenues Cr(Dr) Balance Dr(Cr) Account Description Taxes Property Tax Interest and Penalties Delinquent Taxes Property Tax Interest and Penalties Deferred Inflows of Resources Property Tax Interest and Penalties