Question
The GASB has identified four classes of Nonexchange Revenues: Derived, Imposted, Government Mandated and Voluntary. For each of the following revenue transactions affecting the city,
The GASB has identified four classes of Nonexchange Revenues: Derived, Imposted, Government Mandated and Voluntary.
For each of the following revenue transactions affecting the city, identify the class in which the revenue falls and prepare an appropriate fund journal entry for the current year (2018) as necessary.
1. The city imposes a $100 tax on each sale of real estate. The tax is collected by the title companies that process the sales and must be forwarded to the city within 30 days of the transaction. In December there were 600 sales of real estate. As of year-end the city had collected $40,000 of the $60,000 that it was owed. 2. In December the state announced that the city's share of state assistance for the calendar year 2019 would be $120 million. 3. A local resident sends to the city a copy of her will in which she bequeaths $3 million to the city museum upon her death. 4. The US Department of Justice announces that it will reimburse the city up to $400,000 for the purchase of telecommunications equipment. As of year end the city had incurred only $200,000 in allowable expenditures. 5. A resident donates $10 million in securities to the city to support a cultural center. Only the income from the securities, not the principal, can be spent.
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