Transactions in york city general ledger


Problem: Prepare general journal entries to record the following transactions in York City's general Ledger and make adjusting entries, if needed:

1. York City Levied property taxes of $12,000,000 for 20X6. The taxes were levied on January 1, 20X6. York expects $80,000 to be uncollectible. Three-fourth of the taxes receivable are expected to be collected within 2% discount period. Another $1,000,000 of taxes should be collected before year end but after the discount period. The balance of the collectible taxes is expected to be collected at a uniform rate over the first 10 month of 20X7.

2. York City collected $910,000 (before discounts) of it taxes receivable prior to the end of the discount period. The balance of tax receivable are past due.

3. York wrote off taxes receivable of $30,000 as uncollectible.

4. York collected another $900,000 of its taxes receivable after the discount period but before year end.

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