Reference no: EM131704080

Question: (Property tax adjustments for government-wide financial statements) When Oscar City prepared its fund balance sheet for the year ended December 31, 2012, the General Fund column contained the following items: Property taxes receivable-delinquent: $18,000; Allowance for uncollectible taxes: $2,000; Deferred property taxes: $5,000. During 2013, Oscar collected $16,000 of the delinquent taxes and wrote off the balance of the allowance account. Oscar levied real property taxes in the amount of $1,350,000 to finance its General Fund budget for the calendar year 2013. During the year, Oscar collected $1,280,000 against this levy. With regard to the remaining $70,000, Oscar expected to collect $47,000 during the first 2 months of calendar year 2014 and $20,000 later in the year between March and August 2014. Oscar wrote off $3,000 as uncollectible.

Using this information,

(a) calculate how much property tax revenue Oscar will recognize in its governmental fund statements for 2013;

(b) calculate how much property tax revenue Oscar will recognize in its government-wide statements; and

(c) prepare the journal entries needed to adjust the fund statements so government-wide statements can be prepared.