The City of Charlestown levied property taxes in the amount of $10,000,000. The taxes were levied July 1, 2016 for the fiscal year ended June 30, 2017. During the year ended June 30, 2017, $8,900,000 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, 2017, and $180,000 will never be collected.
-When preparing the General Fund financial statements, how much property tax revenue should be recognized from this levy for the year ended June 30, 2017?

Question

The City of Charlestown levied property taxes in the amount of $10,000,000.  The taxes were levied July 1, 2016 for the fiscal year ended June 30, 2017.  During the year ended June 30, 2017, $8,900,000 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, 2017, and $180,000 will never be collected. 
-When preparing the General Fund financial statements, how much property tax revenue should be recognized from this levy for the year ended June 30, 2017?

Quizplus · Accepted Answer

The property tax revenue in the governmental fund would be the amount of the levy of $10,000,000 - $300,000 the amount expected to be collected more than 60 days after year end - $180,000 deemed uncollectible = $9,520,000.

The City of Charlestown Levied Property Taxes in the Amount