Assignments submitted through email will not be accepted.The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.Instructions – PLEASE READ THEM CAREFULLY
- Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
- Students must mention question number clearly in their answer.
- Late submission will NOT be accepted.
- Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
- All answered must be typed usingTimes New Roman (size 12, double-spaced) No pictures containing text will be accepted and will be considered plagiarism).
- Submissions without this cover page will NOT be accepted.
- A town needs to raise a net of $ 500,000 from property taxes in 2018, but experiences shows that about 2.5% of the tax levy is either refunded or deemed uncollectible. The town, therefore decides to levy property taxes of $ 512,500 to obtain net tax collection of $ 500,000. The actual cash collection during the year are $ 495,000. Pass journal entries to record these transactions.
- Prepare journal entries to record the following events and transactions for the year 2018. (Marks 2)
- The Township adopted a budget calling for appropriations of $420,000. The estimated revenues (all property taxes) were $400,000.
- The Township sent property tax bills amounting to $280,000 to property owners.
- Property owners paid $250,000 of property taxes to the Township.
- A purchase order of $40,000 was sent to a vendor of supplies.
- The supplies ordered in transaction d. were received in good order and the accompanying invoice of $38,000 was approved.
- The council of the Town approved the 2017 budget as follows:
Budgeted 2017 revenues from:
Property taxes $4,000,000
Sales taxes $3,000,000
Appropriations for 2017:
Materials $ 2,000,000
During 2017, the town presented a budget revision to increase the amount of appropriation for salaries by $300,000. The council approved this budget revision.
- Prepare the general journal entry necessary to initially record the budget.
- Prepare the general journal entry necessary to record the budget revision.