Modified accrual accounting method for property tax bills
Not what you're looking for?
Show the impact of each transaction on the fundamental equation of accounting using modified accrual accounting method for Phoenix city.
Phoenix city issued $350,000 in property tax bills this year. Total collections for the year were the $20,000 from the previous year's ending balance in taxes receivables and $300,000 of this year's taxes. The remaining taxes are expected to be collected during the first month of the following year.
Purchase this Solution
Solution Summary
Modified accrual accounting methods for property tax bills are examined. The impact of each transactions are examined.
Solution Preview
Property taxes are recorded as revenues in the year the tax is levied. Therefore, the entry to record the property taxes issued requires a debit to Property Taxes Receivable-Current and a credit to Revenues. The debit and credit are for the full amount of $350,000. If a known amount is expected to be uncollected, a credit to an allowance account should also be made.
Uncollected taxes from the prior year would have been re-classified at year-end from current to delinquent. ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Motivation
This tests some key elements of major motivation theories.