The City of Stewart Levies Property Taxes of $1,800,000 for Its

Short Answer

The City of Stewart levies property taxes of $1,800,000 for its current fiscal year. The City expects to collect all of the property taxes before its fiscal year-end. What journal entry, if any, should the City of Stewart make to record this levy of the property taxes in its General Fund?
a.
$\begin{array}{lll}\text { Property taxes receivable } & 1,800,000 & \\\quad \text { Revenues-property taxes } && 1,800,000 \\\end{array}$

b.
$\begin{array}{lll}\text { Property taxes receivable } & 1,800,000 \\\quad \text { Other financing source-property taxes } & &1,800,000 \\\end{array}$

c.
$\begin{array}{lll}\text { Property taxes receivable } & 1,800,000 \\\quad \text { Deferred revenues-property taxes }& & 1,800,000\end{array}$

d. No entry is required because this transaction relates to an activity accounted for in the General Fund and revenue should only be recognized when it is collected.