When Oscar City prepared its fund balance sheet for the year ended December 31, 2012, the General

Question:

When Oscar City prepared its fund balance sheet for the year ended December 31, 2012, the General Fund column contained the following items: Property taxes receivable— delinquent: $ 18,000; Allowance for uncollectible taxes: $ 2,000; Deferred property taxes: $ 5,000. During 2013, Oscar collected $ 16,000 of the delinquent taxes and wrote off the balance of the allowance account.

Oscar levied real property taxes in the amount of $ 1,350,000 to finance its General Fund budget for the calendar year 2013. During the year, Oscar collected $ 1,280,000 against this levy. With regard to the remaining $ 70,000, Oscar expected to collect $ 47,000 during the first 2 months of calendar year 2014 and $ 20,000 later in the year between March and August 2014. Oscar wrote off $ 3,000 as uncollectible.

Using this information,

(a) Calculate how much property tax revenue Oscar will recognize in its governmental fund statements for 2013;

(b) Calculate how much property tax revenue Oscar will recognize in its government- wide statements; and

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...