The Jackson Independent School District began the year with the following accounts on its Balance Sheet related to property taxes all amounts are in thousands of dollars. All accounts have normal balances:
Taxes Receivable - Delinquent 2,000
Allowance for Uncollectible Taxes - Delinquent 400
Deferred Revenues 300
Selected transactions for the Jackson Independent School District are presented below.
1. On January 1 the school district levied property taxes of $8,000. The due date for the taxes is March 31. Taxes are considered delinquent after that date. The school district expects to collect all but 4% of the levy. In addition the district offers a 2% discount if the taxes are paid by February 28. The district expects 40% of the tax to qualify for the discount.
2. Between January 2 and February 28, the district collected $4,800 of the taxes due. Of this amount, $1,300 was due in the preceding fiscal year.
3. During March, an additional $3,500 of receivables were collected. Of this amount, $200 were for the preceding fiscal year. The remaining delinquent taxes from the preceding fiscal year were written off as uncollectible.
4. On April 1, the balance of the current year taxes is past due. A 10% penalty and 2% in interest was immediately assessed on the delinquent debt. It is estimated that $30 of the total interest and penalties will prove uncollectible.
5. On June 12 the school district wrote off $100 of property taxes, $10 in penalties, and $2 in interest as uncollectible.
6. From March 31 to December 31 the school district collected $300 of the property taxes that were levied on January 1. The school district expects to collect an additional $200 of these taxes during the first two months of the next fiscal year.
Requirements:
1. Prepare the necessary journal entries. Dates and explanations may be omitted. If a transaction requires no entry, do not leave it blank: state "No Entry Required" and explain why.
2. What was the total Revenues - Property Taxes earned in the current fiscal year.
3. Indicate the impact of each of the transactions on the Balance Sheet equation. If a transaction has no effect or if the net effect is zero, indicate it with "NE".

Question

Quizplus · Accepted Answer

The Answer of The Jackson Independent School District began the year with the following accounts on its Balance Sheet related to property taxes all amounts are in thousands of dollars. All accounts have normal balances:
Taxes Receivable - Delinquent 2,000
Allowance for Uncollectible Taxes - Delinquent 400
Deferred Revenues 300
Selected transactions for the Jackson Independent School District are presented below.
1. On January 1 the school district levied property taxes of $8,000. The due date for the taxes is March 31. Taxes are considered delinquent after that date. The school district expects to collect all but 4% of the levy. In addition the district offers a 2% discount if the taxes are paid by February 28. The district expects 40% of the tax to qualify for the discount.
2. Between January 2 and February 28, the district collected $4,800 of the taxes due. Of this amount, $1,300 was due in the preceding fiscal year.
3. During March, an additional $3,500 of receivables were collected. Of this amount, $200 were for the preceding fiscal year. The remaining delinquent taxes from the preceding fiscal year were written off as uncollectible.
4. On April 1, the balance of the current year taxes is past due. A 10% penalty and 2% in interest was immediately assessed on the delinquent debt. It is estimated that $30 of the total interest and penalties will prove uncollectible.
5. On June 12 the school district wrote off $100 of property taxes, $10 in penalties, and $2 in interest as uncollectible.
6. From March 31 to December 31 the school district collected $300 of the property taxes that were levied on January 1. The school district expects to collect an additional $200 of these taxes during the first two months of the next fiscal year.
Requirements:
1. Prepare the necessary journal entries. Dates and explanations may be omitted. If a transaction requires no entry, do not leave it blank: state "No Entry Required" and explain why.
2. What was the total Revenues - Property Taxes earned in the current fiscal year.
3. Indicate the impact of each of the transactions on the Balance Sheet equation. If a transaction has no effect or if the net effect is zero, indicate it with "NE".

The Jackson Independent School District Began the Year with the Following