Question
New town is preparing to send out its property tax notices to property owners. The net levy for Fiscal Year 2021 is $8,400,000. The estimated
New town is preparing to send out its property tax notices to property owners. The net levy for Fiscal Year 2021 is $8,400,000. The estimated uncollectible taxes were 4 percent. The notices were sent on July 2, 2020. Approximately $7,560,000 of the taxes were collected on October 5, 2020. Interest and penalties of $2,800 were assessed on this date, of which $300 were estimated to be uncollectible. On December 5, 2020, approximately $820,000 of the delinquent taxes were collected as well as $1,920 of interest and penalties. On January 18, 2021, the property tax board wrote off $114,000 of the delinquent taxes along with $140 of associated interest and penalties.
5. The entry to record the January 18, 2021 write-off of the delinquent taxes would include a: A. Debit to Interest and Penalties Receivable, $140. B. Credit to Estimated Uncollectible Current Taxes, $114,000. C. Credit to Taxes ReceivableDelinquent, $114,000. D. Debit to Cash, $821,920. Use the following fact pattern to answer Questions 6 through 10: Capri County ordered $50,000 of goods at June 10, 2020 for Public Works. Approximately $40,000 of the order was received on June 19, the invoice was then received on June 20, and payment of $39,980 was made on June 29. The fiscal year 2020 ended at June 30, 2020. The remaining goods were received on July 2, 2020, at the beginning of fiscal year 2021. The invoice cost was $10,065 and was recorded on July 3, 2020.
6. On June 19, the entry to record the receipt of the goods would include a: A. Debit to Expenditures2020, 40,000. B. Debit to Encumbrances2020, $40,000. C. Credit to Cash, $39,980. D. Credit to Encumbrances2020, $40,000.
New town is preparing to send out its property tax notices to property owners. The net levy for Fiscal Year 2021 is $8,400,000. The estimated uncollectible taxes were 4 percent. The notices were sent on July 2, 2020. Approximately $7,560,000 of the taxes were collected on October 5, 2020. Interest and penalties of $2,800 were assessed on this date, of which $300 were estimated to be uncollectible. On December 5, 2020, approximately $820,000 of the delinquent taxes were collected as well as $1,920 of interest and penalties. On January 18, 2021, the property tax board wrote off $114,000 of the delinquent taxes along with $140 of associated interest and penalties.
5. The entry to record the January 18, 2021 write-off of the delinquent taxes would include a: A. Debit to Interest and Penalties Receivable, $140. B. Credit to Estimated Uncollectible Current Taxes, $114,000. C. Credit to Taxes ReceivableDelinquent, $114,000. D. Debit to Cash, $821,920. Use the following fact pattern to answer Questions 6 through 10: Capri County ordered $50,000 of goods at June 10, 2020 for Public Works. Approximately $40,000 of the order was received on June 19, the invoice was then received on June 20, and payment of $39,980 was made on June 29. The fiscal year 2020 ended at June 30, 2020. The remaining goods were received on July 2, 2020, at the beginning of fiscal year 2021. The invoice cost was $10,065 and was recorded on July 3, 2020.
6. On June 19, the entry to record the receipt of the goods would include a: A. Debit to Expenditures2020, 40,000. B. Debit to Encumbrances2020, $40,000. C. Credit to Cash, $39,980. D. Credit to Encumbrances2020, $40,000.
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