During 2014, the city issued $300 in fines for failure to keep real property in 'acceptable' condition.During that period the city spent $200 to mow and clean up the unoccupied properties for which the fines were assessed.The city estimates that $30 of the fines issued in 2014 will be uncollectible.During 2014 the city collected $230 related to 2014 fines and $20 related to 2013 fines.The amount of revenue that the city should recognize in its 2014 governmental fund financial statements related to fines is
A)$230.
B)$250.
C)$270.
D)$300.

Question

Quizplus · Accepted Answer

The city should recognize $250 in revenue, which is the amount collected in 2014 ($230) plus the estimated collectible portion of the fines issued in 2014 ($300 - $30 uncollectible = $270). However, since only $230 was collected in 2014, the revenue recognized is $230 + $20 collected from 2013 fines = $250.

During 2014, the City Issued $300 in Fines for Failure