Problem 3: Property tax revenue, tax anticipation notes, and encumbrances During the year ended December 31, 2021, the Village of Nashville had the following transactions related to its general fund: In January, property taxes of $3,756,000 were levied, 100% of which were estimated to be collectible. Property tax bills were sent to property owners in March with instructions to pay 50% of the property taxes in May and the remaining 50% in November. Before the first property tax collection date, the Village borrowed $960,000 on March 1, 2021, from the 5th Third National Bank in order to pay for government services provided to its citizens before the first collection of its property tax levy in May. The Village repaid the bank the entire amount borrowed plus interest at 3.25% on August 1, 2021. The finance director's budget includes an appropriation for interest payments on tax anticipation notes. The Village budgeted $22,000 for desktop computers for the Mayor's office for 2021. On June 14, 2021, the Village ordered 18 desktop computers for $18,540 from a local vendor. The computers will replace existing desk tops currently being used by the staff working in the mayor's office. 15 of the computers were delivered on July 12, and the invoice for $15,375 was approved for payment. The remaining 3 computers were received on September 2, 2021, and the invoice for $3,075 was approved for payment. > During 2021, the Village received property tax collections as follows: $1,860,000 of property taxes in May; An additional $1,852,000 of property taxes in November. At December 31, 2021, the Village expected that property taxes not collected in 2021 would be collected in 2022 as follows: o $21,000 from January 1 to January 31; o $13,000 from February 1 to March 1, and o $10,000 after March 1. Required: A. What is the balance of property taxes receivable at December 31, 2021? B. What is property tax revenue for 2021? C. When the tax anticipation note payable was repaid on August 1, 2021, cite each of the accounts debited along with their respective amounts. D. Complete the account template for expenditures: general government-commodities for the desk top computers that were ordered and received in 2021. Problem 3 A. Property taxes receivable at December 31, 2021 B. Property tax revenue for year ended December 31, 2021 C. List each account debited when the note was repaid on August 1: $ $ Show amount $ $ Show computations for parts A, B, and C: Problem 3: Property tax revenue, tax anticipation notes, and encumbrances During the year ended December 31, 2021, the Village of Nashville had the following transactions related to its general fund: In January, property taxes of $3,756,000 were levied, 100% of which were estimated to be collectible. Property tax bills were sent to property owners in March with instructions to pay 50% of the property taxes in May and the remaining 50% in November. Before the first property tax collection date, the Village borrowed $960,000 on March 1, 2021, from the 5th Third National Bank in order to pay for government services provided to its citizens before the first collection of its property tax levy in May. The Village repaid the bank the entire amount borrowed plus interest at 3.25% on August 1, 2021. The finance director's budget includes an appropriation for interest payments on tax anticipation notes. The Village budgeted $22,000 for desktop computers for the Mayor's office for 2021. On June 14, 2021, the Village ordered 18 desktop computers for $18,540 from a local vendor. The computers will replace existing desk tops currently being used by the staff working in the mayor's office. 15 of the computers were delivered on July 12, and the invoice for $15,375 was approved for payment. The remaining 3 computers were received on September 2, 2021, and the invoice for $3,075 was approved for payment. > During 2021, the Village received property tax collections as follows: $1,860,000 of property taxes in May; An additional $1,852,000 of property taxes in November. At December 31, 2021, the Village expected that property taxes not collected in 2021 would be collected in 2022 as follows: o $21,000 from January 1 to January 31; o $13,000 from February 1 to March 1, and o $10,000 after March 1. Required: A. What is the balance of property taxes receivable at December 31, 2021? B. What is property tax revenue for 2021? C. When the tax anticipation note payable was repaid on August 1, 2021, cite each of the accounts debited along with their respective amounts. D. Complete the account template for expenditures: general government-commodities for the desk top computers that were ordered and received in 2021. Problem 3 A. Property taxes receivable at December 31, 2021 B. Property tax revenue for year ended December 31, 2021 C. List each account debited when the note was repaid on August 1: $ $ Show amount $ $ Show computations for parts A, B, and C
