The following applies to Q 15, 16,17.18 The City of Katerah maintains its books

Question

The following applies to Q 15, 16,17.18 The City of Katerah maintains its books and records in a manner that facilitates the preparation of fund financial statements, Prepare enrto ecord the city's revenues from the following transactions for the year ended December 31, 2017 a) On January 15, the city received notification hat it had been swarded a $300,000 federal grant to assist in the operation of is "Meals on Wheels" toype grant and all eligibility requirements have been met program. The foderal government expects to send the cash in about three months. This is not a reimbursement b) In February the city spent $31,000 on "Meals on Wheels. e.) In March, fines of $1,800 for were isued for parking tickets. Payment must be made within 30 days, when the city has an enforceable legal claim to the amounts. d.) In Apeil, the city received the $300,000 grant fromm the federal government cash in payment of parking tickets issued in March. In addition, $100 of tickets was contested and court dates have been set. Also, the will be paid eventually Restaurant licenses are issued for a In June, the city received $11,000 in restaurant license fees city expects another that $100 of tickets will be uncollectible but the remaining amounts one-year period, from July I to June 30. The license foes are used to pay restaurant inspectors E) 15. Grant Revenue to be recognized at Year-End Governmental Fund Financial Statements is a. $300,000 b.$269,000 C. $31,000 So 16. Fine Revenue to be recognized at Year-End Governmental Fund Financial Statements is Va. $1,800 b. $1,500 e. $1,300 d. $1,200 17. Fine Receivable (Gross, not Net) to be recognized at Year -End Govemmental Fund Financial Statements is a. $600 b. $500 c.$400 yd. $300 18. Licenses Revenue to be recognized at Year-End Governmental Fund Financial Statements is Va. S11,000 b. $3,500 The following applies to Q # 1920 In November and December 2017, merchants collect $20 million in sales taxes. Of these, $5 million is remitted to the state as due by December 15, 2017; the remaining $15 million is due on January 15, 2018. The state remits the taxes to the city 100 days after it receives them. The availability rule of the city is 60 days 19. How much sales tax revenue should the city recognize at 2017? a. $20 Million b. $15 Million C. $5 Million d. $0 Million 20. How much deferred inflow of resources should the city recognize at 2017? b. d. S20 Million $15 Million $5 Million $0 Million Vc.

Explanation / Answer

15. The Grant Revenue Will be account for a total sum of Rs-300000/-, the whole amount which is receivable by the government and not by 269000.

Journal entry Would be:

Federal Govt. A/c Dr. 300000

To Grant Receipt A/c 300000

16. Fine Revenue to be recognized is Rs-1800/-.

Fine Receivable A/c dr. 1800

To Fine Reveune A/c 1800

17. Fine of Rs-100 is termed as uncollectable and Rs-100 is referred to the court which is yet good to collect so Out of total Revenue Of Rs-1800, Rs-1200 has been collected in cash and Rs-100 is termed as uncollectable so The Fine Receivable Account will be Rs-500/-

18. Licence Revenue is Set forth a whole year from July to next year June. The Income Pertaining to this financial year is for 6 months starting from July to Dec. So the Licence Revenue to be recognized in this financial year is Rs-5500(11000/6*12).

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