Checks were written in the total amount of $3,076,943 were in payment of the following items: ers Payable Other Funds/Internal Payables Federal Government State Government Total amount paid $1,197,963 7,400 1,473,706 397,874 $3,076,943
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
City of Smithville CH 4 Fiscal year 2023. Questions 8-13
![8. [Para. 4-a-8] Checks were written in the total amount of $3,076,943 during 2023.
These checks were in payment of the following items:
Vouchers Payable
Due to Other Funds/Internal Payables
Due to Federal Government
Due to State Government
Total amount paid
$1,197,963
7,400
1,473,706
397,874
$3,076,943
Required: Record the payment of these items in both the General Fund and
governmental activities general journals.
9. [Para. 4-a-9] Current taxes receivable uncollected at year-end, and the related
Allowance for Uncollectible Current Taxes account, were both reclassified as
delinquent.
Of the amount classified as delinquent it was determined $70,450 would not be
collected within 60 days of the fiscal year end and would therefore be unavailable
for use in the current period. As a result, the related amount of revenues was
reclassified as deferred inflows of resources.
Required: Record the reclassification of the balances in the current taxes
receivable account and related allowance for uncollectible account in the General
Fund and governmental activities journals.
13
O2022 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd046fed3-afa8-4b62-b61b-e027e2dbdbcb%2Fe1b3002c-65b6-4144-9356-9ffe28751f7f%2Fq9hyiu5_processed.jpeg&w=3840&q=75)
![bus.
Reclassify $70,450 of property tax revenue to the Deferred Inflows of Resources
account in the General Fund journal only. To accomplish the reclassification of
revenue, debit the revenue account and credit deferred inflows of resources.
Select “Deferral” in the [Description] menu in the Detail Journal.
10. [Para. 4-a-10] The city's budget for 2023 was legally amended as follows:
туре
Estimated Revenues:
Property Taxes
Interest and Penalties
Appropriations:
General Government
Public Safety
Culture and Recreation
Decreases
$ 22,000
Increases
$17,500
$ 8,500
$ 9,000
$13,000
Required: Record the budget amendments in the General Fund general journal
only. Budgetary items do not affect the government-wide accounting records.
Select "Budget Amendment" in the [Description] box in the Detail Journal.
11. [Para. 4-a-11] Interest and penalties receivable on delinquent taxes was increased
by $8,454; $1,536 of this was estimated as uncollectible and based on past history
$2,113 was considered to be unavailable for use in the current fiscal year.
Required: Record this transaction in the General Fund and governmental
activities journals. The $2,113 considered unavailable for use is recorded as
deferred inflows of resources in the General Fund journal and as revenue in the
governmental activities journal.
12. [Para. 4-a-12] Services received by the General Government function of the
General Fund from the Solid Waste Disposal Fund amounted to $28,500 during
the year. Of this amount, $25,400 was paid in cash and $3,100 remained unpaid at
year-end.
liability
Required: Record the receipt of these services, amounts paid during the year,
and remaining liability in the General Fund and governmental activities journals.
At the government-wide level the liability should be credited to Internal Payables
in Business-type Activities. Do not record these items in the Solid Waste
Disposal Fund until instructed to do so in Chapter 7 of this case.
13. [4-a-13] Adjusting Entry. Because the city uses a periodic inventory system a
physical count of consumable supplies was taken at year-end showing an ending
balance of $60,420, an increase of $1,420 during the year. The city uses the
consumption method of accounting for its inventory in the General Fund and at](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd046fed3-afa8-4b62-b61b-e027e2dbdbcb%2Fe1b3002c-65b6-4144-9356-9ffe28751f7f%2Fi5irbnf_processed.jpeg&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
