Acct 562 Assignment 2 Essay

2168 Words Apr 8th, 2013 9 Pages
Chapter 4: Problems 4–4, 4–6, 4–10, and 4–11

3–9. Recording General Fund Operating Budget and Operating Transactions. The Town of Bedford Falls approved a General Fund operating budget for the fiscal year ending June 30, 2011. The budget provides for estimated revenues of $2,700,000 as follows: property taxes, $1,900,000; licenses and permits, $350,000; fines and forfeits, $250,000; and intergovernmental (state grants), $200,000. The budget approved appropriations of $2,650,000 as follows: General Government, $500,000; Public Safety, $1,600,000; Public Works, $350,000; Parks and Recreation, $150,000; and Miscellaneous, $50,000.

Summary
General Fund operating budget: fiscal year ending June 30, 2011
Budget: revenues of $2,700,000
…show more content…
By December 31, 2011, $2,540,000 of the current property tax levy had been collected. Record the amounts collected and reclassify the uncollected amount as delinquent. Interest and penalties of 6 percent were immediately due on the delinquent taxes, but the finance director estimates that 10 percent will not be collectible. Record the interest and penalties receivable. (Round all amounts to the nearest dollar.)

4–6 Special Revenue Fund, Voluntary Nonexchange Transactions. The City of Eldon applied for a competitive grant from the state government for park improvements such as upgrading hiking trails and bike paths. On May 1, 2011, the City was notified that it had been awarded a grant of $200,000 for the program, to be received in two installments on July 1, 2011, and July 1, 2012. The grant stipulates that $100,000 is for use in each of the city’s fiscal years ending June 30, 2012, and June 30, 2013. Any amounts not expended during FY 2012 can be carried over for use in FY 2013. During FY 2012, the city expended $90,000 for park improvements from grant resources.
Required
For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following:
1. May 1, 2011, notification of grant approval. Answer: No Entry

2. July 1, 2011, receipt of first installment of the grant.
Answer:
CR: Grant $1,000,000
DR: Cash $1,000,000

3. During FY 2011 to record expenditures

More about Acct 562 Assignment 2 Essay