Chapter 4 Case Study (1)

Scenario and General Fund budgetary journal entries The scenario: Croton City maintains four governmental-type funds: a General Fund, a Library Special Revenue Fund, a Capital Projects Fund, and a Debt Service Fund. Croton City started its calendar year 2019 with the following General Fund balances (all numbers are in thousands of dollars).   Debits Credits Cash $1,800   Property taxes receivable 800   Salaries payable   $700 Deferred property tax revenues   300 Unassigned fund balance - 1,600 Totals $2,600 $2,600 Croton has adopted the following budgetary and accounting policies:   Encumbrance accounting is used only for the acquisition of supplies and for the award of contracts for construction and construction-related activities. Open encumbrances lapse at the end of the year, but are considered in developing the next year's budget. Because final income tax returns are not required to be filed until April 15 of the year following the end of a calendar…

Prepare journal entries to record the following transactions and events that occurred in Jeter City during calendar year 2022. 1. The city council adopted the following budget: Adopted budget Estimated revenues and other sources: Property taxes $3,250,000 Sales taxes 1,820,000 Use of fund balance 65,000 Total $5,135,000 Appropriations: Streets and parkways: Personal services $1,014,000 Equipment 123,500 Operating supplies 162,500 All other appropriations 3,835,000 Total $5,135,000 2. The Department of Streets and Parkways (S&P) took bids to purchase several items of equipment. The lowest bid came in at $136,500, which was greater than the amount appropriated for equipment. Jeter City’s budget director, who had the authority to interchange budgetary appropriations amounts within a department, authorized a $13,000 reduction in the department’s personal services appropriation and a corresponding increase in the equipment appropriation. 3. S&P entered into contract S&P…

Prepare a balance sheet and a statement of revenues, expenditures, and changes in fund balance for the General Fund for the year ended December 31, 2021.

Required information [The following information applies to the questions displayed below.] The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2024, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund. Accounts payable Accounts receivable Accrued interest payable Accumulated depreciation Administrative and selling expenses Allowance for uncollectible accounts Capital assets Cash Charges for sales and services Cost of sales and services Depreciation expense Due from General Fund Interest expense Interest revenue Transfer in from General Fund Bank note payable Supplies inventory Totals Debits Adjustments: $ 29,400 53,000 VILLAGE OF SEASIDE PINES ENTERPRISE FUND Reconciliation of Operating Income to Net Cash Provided by Operating Activities For the year ended December 31, 2024 722,000 98,000 504,000 51,000 17,700 40,900 19,700 $ 1,535,700 Credits $ 112,000 32,600 51,000…

Miscellaneous scenarios requiring journal entries The following transactions and events pertain to Bean County’s General Fundfor the calendar year 2022:1. The entity receives invoices in early January 2023 for $25,000 for professional servicesobtained in 2022, and $32,000 for December 2022 utility services.2. The entity borrows $500,000 on August 1, 2022, in anticipation of thecollection of property taxes. The borrowed amount is due to be repaid onJanuary 31, 2023, with interest at the rate of 1.5 percent per annum.3. The entity invests $300,000 cash in a CD on November 1, 2022, at an interest rateof 1 percent per annum. The CD will mature on January 31, 2023.4. In September 2022, the entity receives and accepts supplies that had beenordered in August. The amount that had been encumbered was $40,000,but the amount of the approved invoice was $42,000.Prepare journal entries for the transactions and events listed above.Enter 0 or leave the field blank if no entry is required for calendar…

Journal entries and financial statements for an Internal Service Fund The city of Pleasantville’s Data Processing Fund, an Internal Service Fund, provides services for a fee toall departments of Pleasantville’s government.The Fund had the following transactions and events during calendar year 2021. (There was no fund balanceat the beginning of the year.)1. The General Fund made a $2,000,000 transfer of cash to establish the Data Processing Fund.2. The Data Processing Fund pays cash for a $1,900,000 computer.3. Supplies costing $4,500 were purchased on credit.4. Bills totaling $650,000 were sent to the various city departments.5. Repairs to the computer were made at a cost of $2,400, on credit.6. Collections from city departments for services (see #4) were $629,000.7. Salaries of $200,000 were paid to the employees.8. Accounts payable totaling $5,900 was paid.9. As of the end of the year, $300 of supplies (see #3) had not been used.10. Depreciation expense on the computer for the year…

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Problem 5. A summary of the general fund transactions for the city of Wautoma for the year ended December 31, 2016, is as follows: A. A budget was approved, showing estimated revenues of $900,000, appropriations $875,000, transfers in of $27,000 from other funds, and required transfers of $20,000 to other funds. B. The outstanding encumbrance at the end of 2015 was $25,000. Amounts encumbered in the prior period are included in appropriations for 2016. C. Property taxes for $650,000 were levied. In past years, 1% of the property taxes levied proved uncollectible. D. Encumbrances for $25,000 had not been liquidated by the end of 2015 (see B). Invoices for all these items were received in 2016 and totaled $24,000. E. Collections from property taxes totaled $644,000, of which $20,000 represented collections on delinquent taxes. Delinquent taxes of $8,000 remain uncollected, on which a $3,000 allowance is carried. Remaining taxes Receivable - current and taxes receivable - delinquent were…

*Please prepare journal entries for government-wide financial statements** (Select the appropriate fund for each situation when required. If no entry is required for a transaction/event, put "No journal entry required") A) budget is passed for all ongoing activities. Revenue is anticipated to be $1,023,250, with approved spending of $611,000 and operating transfers out of $336,000. B) contract is signed with a construction company to build a new central office building for the government at a cost of $9,000,000. The county previously recorded the budget for this project. C) Bonds are issued for $9,000,000 (face value) to finance construction of the new office building. The new building is completed. An invoice for $9,000,000 is received by the county and paid. E) Previously unrestricted cash of $1,600,000 is set aside by county officials to begin paying the bonds issued in (c). F) A portion of the bonds comes due, and $1,600,000 is paid. Of this total, $115,000 represents…

! Required information [The following information applies to the questions displayed below.] The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2024, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund. Accounts payable Accounts receivable Accrued interest payable Accumulated depreciation Administrative and selling expenses Allowance for uncollectible accounts Capital assets Cash Charges for sales and services Cost of sales and services Depreciation expense Due from General Fund Interest expense Interest revenue Transfer in from General Fund Bank note payable Supplies inventory Totals Required A Required B Complete this question by entering your answers in the tabs below. Required C VILLAGE OF SEASIDE PINES ENTERPRISE FUND Statement of Net Position December 31, 2024 Net Position: Net Investment in Capital Assets Unrestricted Total Net Position Debits Required: a.…

Journal entries to record miscellaneous transactions and events A city's Parks Department has these two General Fund appropriations: Parks department salaries and Parks department other than salaries. All of the following transactions and events are applicable to calendar year 2021. 1. Salaries of $21,000 were paid in October 2021. 2. A purchase order for trees was placed at an estimated cost of $3,000. 3. The trees ordered in the previous transaction were received and accepted. The invoice was approved for payment. 4. The invoice received in the previous transaction was paid. 5. An invoice for $2,600 for November electricity services was approved for payment in early December 2021. 6. Parks Department employees worked during the last week of December 2021 and earned $12,000. They will be paid in early January 2022. 7. An invoice for $3,900 for December electricity services was received in early January 2022.

ces Following are transactions and events of the General Fund of the City of Springfield for the fiscal year ended December 31, 2020. 1. Estimated revenues (legally budgeted) Property taxes Sales taxes Licenses and permits Miscellaneous 2. Appropriations: General government Culture and recreation Health and welfare. 3. Revenues received (cash) Property taxes Sales taxes Licenses and permits General government Culture and recreation Health and welfare. 5. Goods and services received (paid in cash) General government culture and recreation Health and welfare Miscellaneous 4. Encumbrances issued (includes salaries and other recurring items) Estimated $5,275,000 4,630,000 995,000 6. Budget revisions Estimated Revenues Appropriations Increase appropriations: General government $ 140,000 110,000 Culture and recreation. 7. Fund balance on January 1, 2020, was $753,000. There were no outstanding encumbrances at that date. a. Record the transactions using appropriate journal entries, b. Prepare…

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Journal entries for a series of transactionsPrepare journal entries in the General Fund for each of the following events relating to the City of Bar Harbor (all amounts in $1,000s). a. The citizens approve the following budget for the year: ESTIMATED REVENUES $78,924 ESTIMATED OTHER FINANCING SOURCES 2,000 APPROPRIATIONS (77,273) BUDGETARY FUND BALANCE $3,651   General Journal Description Debit Credit       ESTIMATED OTHER FINANCING SOURCES     APPROPRIATIONS             b. The City records the following revenues (on account) and other financing sources (paid in cash) during the year: 1. Revenues-real estate and personal property taxes $68,650 2. Revenues-intergovernmental 12,685 3. Other financing sources-bond proceeds 2,400   Description Debit Credit 1.                 2.                 3.                 c. The City issues purchase invoices totaling $78,508…

! Required information [The following information applies to the questions displayed below.] The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2020, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund. Accounts payable Accounts receivable Accrued interest payable Accumulated depreciation Administrative and selling expenses Allowance for uncollectible accounts Capital assets Cash Charges for sales and services Cost of sales and services Depreciation expense Due from General Fund Debits $ Credits 96,000 $ 32,000 28,000 45,000 47,000 12,000 712,000 89,000 550,000 479,000 45,000 17,000 Interest expense Interest revenue Transfer in from General Fund Bank note payable Supplies inventory Totals 40,000 18,000 4,000 119,000 625,000 $1,479,000 $1,479,000 Prepare the reconciliation of operating income to net cash provided by operating activities that would appear at the bottom of…

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3 The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2024, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund.   Debits Credits Accounts payable   $ 108,000 Accounts receivable $ 27,400   Accrued interest payable   30,600 Accumulated depreciation   49,000 Administrative and selling expenses 51,000   Allowance for uncollectible accounts   13,000 Capital assets 714,000   Cash 96,800   Charges for sales and services   561,000 Cost of sales and services 500,000   Depreciation expense 49,000   Due from General Fund 17,300   Interest expense 40,500   Interest revenue   5,300 Transfer in from General Fund   117,600 Bank note payable   630,400 Supplies inventory 18,900   Totals $ 1,514,900 $ 1,514,900   Required: Prepare the reconciliation of operating income to net cash provided by operating activities that would appear at…

3 The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2024, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund.   Debits Credits Accounts payable   $ 108,000 Accounts receivable $ 27,400   Accrued interest payable   30,600 Accumulated depreciation   49,000 Administrative and selling expenses 51,000   Allowance for uncollectible accounts   13,000 Capital assets 714,000   Cash 96,800   Charges for sales and services   561,000 Cost of sales and services 500,000   Depreciation expense 49,000   Due from General Fund 17,300   Interest expense 40,500   Interest revenue   5,300 Transfer in from General Fund   117,600 Bank note payable   630,400 Supplies inventory 18,900   Totals $ 1,514,900 $ 1,514,900   Required: Prepare the reconciliation of operating income to net cash provided by operating activities that would appear at the…

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Relationship between budgetary fund balance and actual fund balance The Village of Albert’s Alley recorded the following budgetary journal entry at the beginning of fiscal 2022: Estimated revenue 5,000,000   Appropriations   4,950,000 Budgetary fund balance   50,000   At the end of fiscal 2022, what would be the effect on the ending actual fund balance, assuming the following: a. Actual revenues are $3,000 less than estimated revenues, and actual expenditures are $2,000. The actual ending fund balance would increase by?

The following General Fund information is available for the preparation of the financial statements for the City of Eastern Shores for the year ended September 30, 2024: Inflow of Financial Resources: Property taxes Sales taxes Fees and fines Licenses and permits Intergovernmental Investment earnings Proceeds from sale of land Outflows of Financial Resources: Current: General government Public safety Public works Health and sanitation Culture and recreation Transfer to capital project fund Fund balance, October 1, 2023 Revenues: Taxes: Total Revenues Required: From the information given above, prepare a General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the city of Eastern Shores General Fund for the year ended September 30, 2024. Note: Negative entries should be entered with a minus sign and will appear in parenthesis. CITY OF EASTERN SHORES Statement of Revenues, Expenditures, and Changes in Fund Balance General fund For the Year Ended September 30,…

Prepare a preclosing trial balance for the General Fund as of December 31, 2021.

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Prepare the necessary closing entries for the General Fund for the year ended December 31, 2021.

4. City of Atwater wants to prepare closing entries at the end of a fiscal year for budgetary and operating statement control accounts in the general ledger of the General Fund. Following balance are belong to the City. Appropriations, $7,824,000%3; Financing Uses, $2,766,000; Estimated Revenues, $7,798,000; Encumbrances,$0; Expenditures, $5,900,0003; Uses, $2,770,000; Revenues, $8,980,000. Required Show in general journal form the entry needed to close all of the preceding accounts that should be closed as of the end of the fiscal year. Estimated Other Other Financing

The following information is provided about some of the Town of Truesdale’s General Fund operating statement and budgetary accounts for the fiscal year ended June 30.           Estimated revenues $ 3,150,000   Revenues   3,190,000   Appropriations   3,185,000   Expenditures   3,175,000   Estimated other financing sources   400,000   Encumbrances   20,000   Encumbrances outstanding   20,000   Budgetary fund balance   (calculate)      The Town of Truesdale will honor all of its outstanding encumbrances in the next fiscal period. Prepare the journal entry(ies) to close budgetary accounts required to be closed at the fiscal year end using the information provided.

2 The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2024, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund.   Debits Credits Accounts payable   $ 108,000 Accounts receivable $ 27,400   Accrued interest payable   30,600 Accumulated depreciation   49,000 Administrative and selling expenses 51,000   Allowance for uncollectible accounts   13,000 Capital assets 714,000   Cash 96,800   Charges for sales and services   561,000 Cost of sales and services 500,000   Depreciation expense 49,000   Due from General Fund 17,300   Interest expense 40,500   Interest revenue   5,300 Transfer in from General Fund   117,600 Bank note payable   630,400 Supplies inventory 18,900   Totals $ 1,514,900 $ 1,514,900     Required: Prepare the closing entries for December 31. Prepare the Statement of Revenues, Expenses, and Changes in Fund…

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Budget & Fund Balance: The Wayne City Council approved and adopted its budget for 2020. The budget contained the following amounts:                     Estimated revenues   $ 800,000                 Appropriations   $ 700,000                 Estimated other financing uses-interfund transfers out   $ 60,000                                       During the year 2020, the following transactions and events occurred that affected the general fund.                              Property tax revenue   $ 675,000                          Interfund transfer out to the debt service fund   $ 45,000                          Interfund transfer in received by general fund   $ 60,000                          Expenditures   $ 430,000                 Encumbrances, balance at 2020 year-end   $ 120,000                                       Required: Complete #1-3 below.                                           1) Prepare the entry to close the budget.…

Preparation of appropriations ledger Prepare an appropriations ledger similar to Table 3-6 to record the transactions and events applicable to the appropriation for Parks department—plants and supplies.The ledger should have columns for appropriation (Cr.), encumbrances (Dr. and Cr.), expenditures (Dr.), and available appropriation (Cr.). The following transactions and events occurred in Marilyn County during calendar year 2022:1. The legislature adopted the following budget: Estimated revenues and other sources:   Property taxes $1,740,000 Sales taxes 1,000,000 Use of fund balance 10,000 Total $2,750,000 Appropriations:   General government—salaries $420,000 General government—supplies 30,000 Parks department—salaries 2,000,000 Parks department—plants and supplies 300,000 Total $2,750,000 2. The Parks department placed PO 2022-1 for shrubbery in the amount of $52,000 and PO 2022-2 for gardening supplies in the amount of $11,000.The orders were charged to…

City of Smithville CH 4 Fiscal year 2023. Questions 8-13

The Balance Sheet of the Street and Highway Fund of the City of Monroe as of December 31, 2019, follow.  CITY OF MONROE Street and Highway Fund Balance Sheet As of December 31, 2019 Assets Cash $ 19,000   Investments   63,000   Due from state government   107,000   Total assets $ 189,000   Liabilities and Fund Equity Liabilities:       Accounts payable $ 10,000   Fund equity:       Fund balance—assigned for streets and highways   179,000   Total liabilities and fund equity $ 189,000      3-C. This portion of the continuous problem continues the special revenue fund example by requiring the recording and posting of the budgetary entries. To reduce clerical effort required for the solution use control accounts for the budgetary accounts, revenues, expenditures and encumbrances. Subsidiary accounts are not required. Budget information for the City includes: (1) Also as of January 1, 2020, the City Council approved and the mayor signed a budget for the…

The following items were included in Simple City's General Fund expenditures for the year ended June 30:   Computer for the city treasurer's office $ 6,000 Furniture for the mayor’s office $ 20,000   How much should be classified as capital assets in Simple City's government-wide statement of net position at June 30?   Multiple Choice   $26,000 $0 $20,000 $6,000

Prepare journal entries in general journal format to record the following transactions for the City of Dallas General Fund (subsidiary detail may be omitted) 1. The budget prepared for the fiscal year included total estimated revenues of $4,693,000, appropriations of $4,686,000 and estimated other financing uses of $225,000. 2. Purchase orders in the amount of $451,000 were mailed to vendors. 3. The current year’s tax levy of $4,005,000 was recorded; uncollectible taxes were estimated to be 2% of the tax levy. 4. Collections of delinquent taxes from prior years’ levies totaled $82,700; collections of the current year’s levy totaled $3,524,900. 5. Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in transaction (#2) of this problem. The estimated liability for the related items was $351,200. Actual invoices were $353,500. 6. Revenue other than taxes collected during the year consisted of licenses and permits, $177,600;…

Can someone help me with this? 1. The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2024: Beginning balances were: Cash, $95,000; Taxes Receivable, $185, 000; Accounts Payable, $50,000; and Fund Balance, $230, 000. The budget was passed. Estimated revenues amounted to $1,200,000 and appropriations totaled S 1,197,500. All expenditures are classified as General Government. Property taxes were levied in the amount of $902, 000. All of the taxes are expected to be collected before February 2025. Cash receipts totaled $870,000 for property taxes and $272,000 from other revenue. Contracts were issued for contracted services in the amount of $90, 000. Contracted services were performed relating to S82,000 of the contracts with invoices amounting to $81, 500. Other expenditures amounted to $947,000. Accounts payable were paid in the amount of S 1,070,000. The books were closed. Required: Prepare journal entries for the above…