(Solved) (Entries to prepare government-wide statements

(Entries to prepare government-wide statements - property tax revenue deferral)

When it prepared its financial statements for calendar year 2012, Watson Town assumed that it would collect all unpaid property taxes during the first 60 days of 2013. As a result, no deferred revenues were reported. The following facts pertain to the property tax revenues for calendar years 2013 and 2014. Make adjusting entries needed to prepare both the fund-level and the government-wide financial statements for 2013 and 2014. Watson Town does not record deferred revenues until it makes end of the year adjustments.


                     2013   2014
      Tax levy         $700,000   $730,000
      Taxes collected in cash from the year's levy   $670,000   $690,000
      Taxes expected to be collected in first
      60 days of the following year      $ 22,000   $ 29,000
      Taxes expected to be collected later in
      the following year      $ 8,000   $ 11,000

Assume that all taxes expected to be collected in the following year were actually collected when expected. Also assume that all journal entries to record the tax levy, tax collections and so on were made, as appropriate.

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(Entries to prepare government-wide statements - property tax revenue deferral)

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