Property tax revenue transactions and measurement in financial statements Honesdale levies property taxes in March of each year to help finance the General Fund expenditures for the calendar year. Property owners are required to pay the taxes in equal installments in April and October. Taxes remaining uncollected are declared delinquent at the end of the year. The facts regarding property taxes levied and collected for calendar years 2021 and 2022 are as follows: 2021: Honesdale levied property taxes of $700,000, anticipating the entire amount to be collected. It actually collected $650,000 during the year. When the village prepared its financial statements, it assumed all the delinquent taxes would be collected during 2022: $37,000 in the first 60 days and the remaining $13,000 later in 2022. 2022: Regarding the $50,000 of delinquent 2021 taxes, Honesdale collected $40,000 in the first 60 days of 2022 and $8,000 during the rest of 2022; the village wrote off the remaining $2,000 as uncollectible. For calendar year 2022, Honesdale levied property taxes of $730,000, again expecting the entire amount to be collected. It actually collected $690,000 in the year of the levy. When it prepared its 2022 financial statements, the village assumed $37,000 of the delinquent. 2022 taxes would be collected during 2023: $30,000 in the first 60 days and $7,000 later in the year. It established an allowance of $3,000 for uncollectible taxes. a. Prepare journal entries to record the year 2021 transactions in the General Fund, including the year-end adjustment needed to prepare the fund financial statements. Do not make an entry to reclassify property taxes receivable as delinquent. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account Debit Credit 0 0 0 O 0 0 To record 2021 property tax levy. 0 O 0 0 0 To record 2021 property tax.collections. 0 0 0 0 To record 2021 adjustment for unrecognizable revenues. b. Prepare the entry to record the adjustment needed to prepare the governmental activities column of the 2021 government-wide statements. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account To record adjustment for government-wide statement Debit Credit 0 0 0 0 c. Prepare journal entries to record the year 2022 transactions in the General Fund, including the year-end adjustment needed to prepare the fund financial statements. Do not make an entry to reclassify property taxes receivable as delinquent. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account : Debit Credit 0 0 0 To record collection of 2021 property taxes. 0 0 0 0 0 To recognize 2021 deferred tax revenues. O 0 0 0 To write off uncollectible 2021 tax revenues. 0 0 0 To record 2022 property tax levy. To record collection of 2022 property taxes. 0 0 0 0 0 0 0 To record 2022 adjustment for unrecognizable tax revenues 0 0 0 To record adjustment for uncollectible 2022 taxes. d. Prepare the entry to record the adjustment needed to prepare the governmental activities column of the 2022 government-wide statements. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account Debit Credit d. Prepare the entry to record the adjustment needed to prepare the governmental activities column of the 2022 government-wide statements. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account To adjust out 2021 tax revenues. Debit 0000 Credit 0 0 To record adjustment for government-wide statements. e. Calculate the amount of property tax revenues Honesdale should recognize in its fund financial statements and in its government-wide statements for 2022. Fund statements Government-wide statements 2022 Property tax revenues 5 05 0 Check 0 0