The following information concerns tax revenues for the city of Fairfield. The balances concerning property taxes on January 1, 2018,
Delinquent property taxes receivable . . . . .. . . . . . .. . . . . . .. . . . . $105,000
Allowance for uncollectible delinquent taxes . . . . . .. . . . . . .. . . . . (30,000)
Tax liens receivable . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . 40,000
Allowance for uncollectible tax liens. . . . . .. . . . . . .. . . . . . .. . . . . (23,000)
Required
Prepare entries in the general fund for the following 2018 events:
Jan. Since current property taxes would not be collected for several months, $275,000 was borrowed using tax anticipation notes.
Feb. Tax liens of $10,000 were collected; in addition, $2,000 of interest was collected that had not been accrued. The balance of tax liens was settled by receiving $13,000 for the property subject to the tax liens.
Apr. Collections on delinquent property taxes were $100,000, and interest of $4,500 was collected. The interest had not been accrued. The balance of the account was converted into tax liens.
July Current property taxes were levied for$422,000 with a 5% allowance for uncollectible amounts.
Sept. Collection of current property taxes totaled $345,000. The tax anticipation notes were paid off with interest of $18,000.