Question
For each of the following indicate the amount of revenue that Beanville should recognize in its 2017 (1) government-wide statements and (2) governmental fund statements.
For each of the following indicate the amount of revenue that Beanville should recognize in its2017(1) government-wide statements and (2) governmental fund statements. Provide a brief justification or explanation for your responses.
1.In December 2016 the city levied property taxes of $1 billion for the calendar year 2017. The taxes are due June 30, 2017. The city collected these taxes as follows:
December 2016$ 56 million
January 1, 2016, to December 31, 2016$ 858 million
January 1, 2017, through March 31, 2017 ($18 million per month)$ 54 million
Total$ 968 million
It estimates the balance of $32 million would be uncollectible. In addition, in the period from January 1 through February 28, 2017, the city collected $16 million in taxes that were delinquent as of December 31, 2016. In the period March 1 through June 30 2017, the city collected $8 million of taxes that were also delinquent as of December 31, 2016.
2.In December 2017, Beanville's city-owned radio station held its annual fund drive. A local business offered to match all pledges made on December 2, 2017, up to $50,000, assuming that the amount pledged was actually collected. Based on past experience the city estimates that 90 percent of the pledges will actually be collected. By year-end 2017, the city had collected $25,000 of the pledges, and in January and February it collected an additional $15,000. It received $25,000 of the matching funds on February 15, 2018.Respond with respect only to the $50,000 in matching funds.
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