The City of Smithfield levied property taxes in and for 2017 in the amount of $300 million. During 2017, $280 million was collected, and $12 million was collected during the next 60 days. During the remainder of 2018 March - December, $3 million was written off and the remainder of the tax levy was collected. The adjustment, when moving from the governmental funds changes in fund balances to the governmental activities change in Net Position would be:

Question

Quizplus · Accepted Answer

The property tax revenue on the government-wide statements would be $300 million - $3 million of bad debt = $297 million. The property tax revenue in the governmental fund would be $280 million collected + $12 million collected during the first 60 days of the year = $292 million. So, the adjustment would be a $5 million increase. $297 million - $292 million.

The City of Smithfield Levied Property Taxes in and for 2017