As provided in the adopted budget, on January 1, 2020 Croton City levies real property taxes of $28 million for General Fund activities, payable in two equal installments, in March and September. The city assumes all taxes will be paid in the fiscal year the taxes were levied. What journal entry should the city make on January 1 in its General Fund?

Question

Quizplus · Accepted Answer

Entry a. should be made in the General Fund because the property taxes have been levied and are available because the City expects to collect all of the property taxes before its fiscal year-end.

As Provided in the Adopted Budget, on January 1, 2020