WORD PROBLEM #1 2O POINTS

The township of Pinnacle, New Jersey has a December 31 fiscal year end has adopted a policy of recognizing the maximum amount of property tax revenue allowable under GAAP.

Property taxes are due by March 31* of the year in which they are levied.

Prepare journal entries to record the following property tax related transactions in which the township engaged in fiscal years 2017 and 2018:

On January 10, 2017, the town council levied property taxes of $120 million for the year ending December 31, 2017. An analysis of prior year receipts indicates that the town chief financial officer will estimate that 2% will be uncollectable;

During 2017, Pinnacle collected $90 million in property taxes;

At December 31, 2017, it reclassified the uncollected 2017 property taxes as delinquent;

In January and Febmary of 2018 it collected an additional $20 million of propeLy taxes levied in 2017;

In April 2018 Pinnacle collected an additional $5 million of 2017 property

taxes;

F. In May of 2018 in keeping wik past practice, Pinnacle wrote off uncollectible the remaining property taxes levied in 2017.

WORD PROBLEM #2 10 POINTS

Echo Island Township has a 12/31 fiscal year end has adopted a policy of recognizing the maximum amount of property tax revenue allowable under GAAP.

Property taxes of $720,000 are levied in October 2016 to finance the activities of the fiscal year 2017. Based upon past experience, 10% of these taxes are estimated to be uncollectable.

During 2017, cash collections related to property taxes levied in October 2016 were 8600,000.

In 2018 the following amounts related to the 2017 property taxes were collected: January $30,000; March, $6,000.

For the fiscal year ended 12/31/17, what amount should be recognized as property tax revenues related to the fiscal year 2017 levy on the governmental fund financial statements?