The following data applies to the next three questions:
The City of Charlestown levied property taxes in the amount of $9,000,000. It is estimated that 2% will not be collected. The taxes were levied July 1, 2013 for the fiscal year ended June 30, 2014. During the year ended June 30, 2014, $7,900,000 in property taxes were collected from this levy. It is estimated that $620,000 will be collected during the next 60 days, $300,000 will be collected more than 60 days after June 30, 2014, and $180,000 will never be collected.
-When preparing the government-wide financial statements,how much property tax revenue should be recognized for the year ended June 30,2014?

Question

Quizplus · Accepted Answer

In government-wide financial statements, revenue is recognized when it is measurable and available. For the year ended June 30, 2014, $7,900,000 was collected, and an additional $620,000 is expected to be collected within 60 days, totaling $8,520,000. The $300,000 expected to be collected after 60 days is not considered available, and $180,000 is estimated to be uncollectible. Therefore, the recognized revenue is $8,820,000 ($7,900,000 + $620,000).

The Following Data Applies to the Next Three Questions