Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below 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?

Explanation / Answer

Answer

The amount reported for property tax revenue in the government - Statement of Activities would be :

A.$8,900,000

According to the principle, revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered.

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