The City of Pine Cove levied property taxes for the fiscal year ended June 30,2015,in the amount of $10,000,000.It is estimated that 2% will not be collected.During the year ended June 30,2015,$8,500,000 in property taxes was collected.It is estimated that $550,000 will be collected during the next 60 days,$765,000 will be collected after 60 days,and $185,000 will not be collected.What is the maximum amount Lonesome Pines can recognize as property tax revenue for the fiscal year ended June 30,2015,in its Governmental Funds Statement of Revenues,Expenditures,and Changes in Fund Balances,assuming there were no unpaid property taxes at the end of the previous year?

Question

Quizplus · Accepted Answer

The maximum amount of property tax revenue that can be recognized in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the fiscal year ended June 30, 2015, would be the amount of taxes collected during the fiscal year, excluding the estimated uncollectible amount. Therefore, the maximum revenue to be recognized would be $10,000,000 x 98% = $9,800,000. Since $8,500,000 was collected during the fiscal year, an additional $550,000 is estimated to be collected within 60 days and $765,000 is estimated to be collected after 60 days, the total revenue to be recognized is $8,500,000 + $550,000 + $765,000 = $9,815,000.

The City of Pine Cove Levied Property Taxes for the Fiscal