Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The City of Sunnyvale's General Fund had the followingtransactions: Record the effect of the following transactions on the General Fund and governmental activities for the

The City of Sunnyvale's General Fund had the followingtransactions:

Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020.

1. The property tax levy for the fiscal year 2020 was recorded. The net assessed valuation of taxable property for the year was $43,000,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible.

2. $1,961,000 of current taxes, $103,270 of delinquent taxes, and $3,570 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected.

3. Additional interest and penalties on delinquent taxes were accrued in the amount of $3,430, of which 30 percent was estimated to be uncollectible.

4. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibleswere transferred to delinquent accounts. The city uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year.

5. Record in general journal form entries to close the operating statement accounts in the General Fund only. Do not close the governmental activities accounts.

Please show work, and explain #5. Having trouble with #5.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Lawrence Tomassini

5th Edition

0077282078, 9780077282073

More Books

Students also viewed these Accounting questions

Question

How easy the information is to remember

Answered: 1 week ago

Question

The personal characteristics of the sender

Answered: 1 week ago