Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 17.14P
To determine
Concept introduction:
General fund: It accounts for all financial resources except for those accounted for in another fund. It includes transactions for general governmental services provided by the entity’s executive, legislative, and judicial operations. The accounting for the general fund includes accounting for the inter fund activities on the general fund’s operating statement, the statement of revenues, expenditures, and changes in fund balance.
The entries to record budgeted and actual transactions for year ended June 30, 20X2.
Expert Solution & Answer
Explanation of Solution
Particulars | Debit $ | Credit $ |
Estimated revenues control | 3,000,000 | |
Appropriations control | 2,980,000 | |
Budgetary fund balance − unreserved | 20,000 | |
(Budgetary estimates recorded) | ||
Taxes receivable | 2,870,000 | |
Allowance for uncollectible taxes | 70,000 | |
Property tax revenue | 2,800,000 | |
(Property tax levy recorded in tax receivable account) | ||
Cash | 2,810,000 | |
Taxes receivable | 2,810,000 | |
(Received cash on account of property tax collections) | ||
Allowance for Uncollectible taxes | 40,000 | |
Tax receivable | 40,000 | |
(Allowance for uncollectible created for doubtful tax receivable) | ||
Cash | 130,000 | |
Miscellaneous receivables | 130,000 | |
(Cash received on account of Miscellaneous revenue) | ||
Fund Balance − Reserved for encumbrances | 60,000 | |
Fund balance − unreserved) | 60,000 | |
(Reversal of prior reserves which has been renewed) | ||
Encumbrances | 60,000 | |
Budgetary fund balance − reserved for encumbrances | 60,000 | |
(Record renewal of purchase commitments from prior year) | ||
Expenditures | 142,000 | |
Due to other funds | 142,000 | |
((record liability to other funds for service received) | ||
Budgetary fund balance − reserved for encumbrances | 2,700,000 | |
Encumbrances | 2,700,000 | |
(Reverse for purchase order received) | ||
Expenditures | 2,700,000 | |
Vouchers payable | 2,700,000 | |
(Recording of expenditures) | ||
Budgetary fund balance − reserved for encumbrances | 60,000 | |
Encumbrances | 60,000 | |
(Reverse for purchase order received) | ||
Expenditures prior period | 58,000 | |
Vouchers payable | 58,000 | |
(Recording of actual expenditures for goods received) | ||
Due to other funds | 210,000 | |
Vouchers payable | 210,000 | |
(Record approval for payment to other funds) | ||
Vouchers payable | 2,640,000 | |
Cash | 2,640,000 | |
(Payments of vouchers during the period) | ||
Encumbrances | 91,000 | |
Budgetary fund balance − reserved for encumbrances | 91,000 | |
(Recording of encumbrances on May 10) | ||
(Closure of budgetary account) |
- The budget for the year is estimated to be $3,000,000 and appropriations were made for $2,980,000 and the balance amount is unreserved.
- Taxes receivable is estimated to be $2,870,000 debited to receivable account and allowance for uncollectible is created remaining balance is credited to property tax revenue.
- Property tax collections received debited to the cash account and credited to the tax receivable account.
- Tax receivable worth $40,000 is expected to be uncollectible and written off from allowance for uncollectible.
- Cash received on account of miscellaneous revenue and debited to cash account.
- Encumbrances of prior year renewed in the current year.
- Renewal of encumbrances of the prior year.
- Encumbrances for purchase commitment recorded.
- Liability on service received from other funds recognized in expenditures.
- Encumbrances of $2,700,000 reversed for purchase order received.
- Expenditure for the year recognized by crediting to vouchers payable account.
- Reversal of reserved encumbrances $60,000 on receipt of goods.
- Actual expenditure of $58,000 on goods received recognized.
- Amount due to other funds recognized and credited to vouchers payable.
- Vouchers worth $2,640,000 payable during the year paid and credited to the cash account.
- Encumbrances made on May 10 recorded.
July 1, 20X1 taxes receivable balance | $150,000 |
20X2 tax levy | 2,870,000 |
Less: Tax collected | (2,810,000) |
Tax receivable final balance | (170,000) |
Taxes written off as uncollectible | $40,000 |
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations:
1. Deferred inflows of resources-property taxes of $69,400 at the end of the previous fiscal year were recognized as property tax revenue in the current yearAc€?cs Statement of Revenues, Expenditures, and Changes in Fund Balance.
2. The City levied property taxes for the current fiscal year in the amount of $10,000,000. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $600,000 of the taxes had not been collected. It was estimated that $320,000 of that amount would be collected during the 60-day period after the end of the fiscal year and that $80,000 would be collected after that time. The City had recognized the maximum of property taxes allowable under…
The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations:
1. Deferred inflows of resources-property taxes of $69,400 at the end of the previous fiscal year were recognized as property tax revenue in the current yearAc€?cs Statement of Revenues, Expenditures, and Changes in Fund Balance.
2. The City levied property taxes for the current fiscal year in the amount of $10,000,000. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $600,000 of the taxes had not been collected. It was estimated that $320,000 of that amount would be collected during the 60-day period after the end of the fiscal year and that $80,000 would be collected after that time. The City had recognized the maximum of property taxes allowable under…
The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements.
Deferred inflows of resources—property taxes of $51,200 at the end of the previous fiscal year were recognized as property tax revenue in the current year’s Statement of Revenues, Expenditures, and Changes in Fund Balance.
The City levied property taxes for the current fiscal year in the amount of $10,000,000. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $200,000 is thought to be uncollectible, $349,000 would likely be collected during the 60-day period after the end of the fiscal year, and $53,800 would be collected after that time. The City had recognized the maximum of property taxes allowable under modified accrual accounting.
In addition to the expenditures recognized under modified accrual accounting, the City computed that $29,000 should be…
Chapter 17 Solutions
Advanced Financial Accounting
Ch. 17 - Prob. 17.1QCh. 17 - What are the nine funds that local and state...Ch. 17 - Compare the modified accrual basis with the...Ch. 17 - Prob. 17.4QCh. 17 - When are property taxes recognized as revenue in...Ch. 17 - Prob. 17.6QCh. 17 - Prob. 17.7QCh. 17 - Are all expenditures encumbered?Ch. 17 - Prob. 17.9QCh. 17 - Prob. 17.10Q
Ch. 17 - When is the expenditure for inventories recognized...Ch. 17 - Prob. 17.12QCh. 17 - Prob. 17.13QCh. 17 - Prob. 17.14QCh. 17 - Prob. 17.15QCh. 17 - Prob. 17.1CCh. 17 - Prob. 17.2CCh. 17 - Prob. 17.3CCh. 17 - Prob. 17.1.1ECh. 17 - Prob. 17.1.2ECh. 17 - Prob. 17.1.3ECh. 17 - Prob. 17.1.4ECh. 17 - Prob. 17.1.5ECh. 17 - Prob. 17.2ECh. 17 - Prob. 17.3.1ECh. 17 - Prob. 17.3.2ECh. 17 - Prob. 17.3.3ECh. 17 - Prob. 17.3.4ECh. 17 - Prob. 17.3.5ECh. 17 - Prob. 17.3.6ECh. 17 - Prob. 17.3.7ECh. 17 - Prob. 17.3.8ECh. 17 - Prob. 17.3.9ECh. 17 - Prob. 17.3.10ECh. 17 - Prob. 17.4.1ECh. 17 - Prob. 17.4.2ECh. 17 - Prob. 17.4.3ECh. 17 - Prob. 17.4.4ECh. 17 - Prob. 17.4.5ECh. 17 - Prob. 17.4.6ECh. 17 - Prob. 17.4.7ECh. 17 - Prob. 17.4.8ECh. 17 - Prob. 17.4.9ECh. 17 - Prob. 17.4.10ECh. 17 - Prob. 17.5ECh. 17 - Prob. 17.6ECh. 17 - Prob. 17.7ECh. 17 - Computation of Revenues Reported on the Statement...Ch. 17 - Prob. 17.9ECh. 17 - Prob. 17.10ECh. 17 - Prob. 17.11ECh. 17 - Prob. 17.12ECh. 17 - General Fund Entries [AICPA Adapted] The following...Ch. 17 - Prob. 17.14PCh. 17 - Prob. 17.15PCh. 17 - Prob. 17.16PCh. 17 - Prob. 17.17PCh. 17 - Prob. 17.18.1PCh. 17 - Prob. 17.18.2PCh. 17 - Prob. 17.18.3PCh. 17 - Prob. 17.18.4PCh. 17 - Prob. 17.18.5PCh. 17 - Prob. 17.18.6PCh. 17 - Prob. 17.18.7PCh. 17 - Prob. 17.18.8PCh. 17 - Prob. 17.18.9PCh. 17 - Prob. 17.18.10PCh. 17 - Prob. 17.18.11PCh. 17 - Prob. 17.18.12PCh. 17 - Prob. 17.18.13PCh. 17 - Prob. 17.18.14PCh. 17 - Prob. 17.18.15PCh. 17 - Prob. 17.18.16PCh. 17 - Prob. 17.18.17PCh. 17 - Prob. 17.18.18PCh. 17 - Prob. 17.18.19PCh. 17 - Prob. 17.18.20PCh. 17 - Prob. 17.18.21PCh. 17 - Prob. 17.18.22PCh. 17 - Prob. 17.18.23PCh. 17 - Prob. 17.18.24PCh. 17 - Prob. 17.18.25PCh. 17 - Prob. 17.18.26PCh. 17 - Prob. 17.18.27PCh. 17 - General Fund Entries [AICPA Adapted] DeKalb City...Ch. 17 - Prob. 17.18.29PCh. 17 - Prob. 17.18.30PCh. 17 - Prob. 17.18.31PCh. 17 - General Fund Entries [AICPA Adapted] DeKalb City...Ch. 17 - Prob. 17.18.33PCh. 17 - Prob. 17.18.34PCh. 17 - Prob. 17.18.35PCh. 17 - General Fund Entries [AICPA Adapted] DeKalb City...Ch. 17 - Prob. 17.18.37PCh. 17 - Prob. 17.18.38PCh. 17 - Prob. 17.18.39PCh. 17 - Prob. 17.19PCh. 17 - Prob. 17.20P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The City of San Antonio is reconciling its modified accrual accounting governmental fund statements to full accrual accounting for government-wide reporting. It reported a Change in Fund Balance of $4,200,000 in its Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the year ended December 31, 2020. This number reflects the total of revenues and other financing sources less expenditures and other financing uses using modified accrual accounting. The City reported debt service expenditures of $612,000 for principal payments on bonds in the modified accrual statements. After the reconciling entry is prepared, what is the new Change in Fund Balance for the Governmental Funds following full accrual accounting?arrow_forwardWhen preparing government-wide financial statements, the modified accrual based governments funds are adjusted. Please show the adjustments (in journal entry form with debits and credits) that would be made for the following General Fund transactions when converting to the government-wide statements: 3. $10,000 in interest was due and paid on that revenue bond during the fiscal year ($5,000 due every six months).arrow_forwardThe following transactions relate to the general fund of the city of Lost Angels for the year ending December 31, 2020. Prepare a statement of revenues, expenditures, and other changes in fund balance for the general fund for the period to be included in the fund financial statements. Assume that the fund balance at the beginning of the year was $180,000. Assume also that the city applies the purchases method to supplies. Receipt within 60 days serves as the definition of available resources. Collects property tax revenue of $700,000. A remaining assessment of $100,000 will be collected in the subsequent period. Half of that amount should be received within 30 days, and the remainder approximately five months after the end of the year. Spends $200,000 on three new police cars with 10-year lives. The anticipated price was $207,000 when the cars were ordered. The city calculates all depreciation using the straight-line method with no expected residual value. The city applies the…arrow_forward
- The following transactions relate to the general fund of the city of Lost Angels for the year ending December 31, 2020. Prepare a statement of revenues, expenditures, and other changes in fund balance for the general fund for the period to be included in the fund financial statements. Assume that the fund balance at the beginning of the year was $180,000. Assume also that the city applies the purchases method to supplies. Receipt within 60 days serves as the definition of available resources. Collects property tax revenue of $700,000. A remaining assessment of $100,000 will be collected in the subsequent period. Half of that amount should be received within 30 days, and the remainder approximately five months after the end of the year. Spends $200,000 on three new police cars with 10-year lives. The anticipated price was $207,000 when the cars were ordered. The city calculates all depreciation using the straight-line method with no expected residual value. The city applies the…arrow_forwardThe following transactions relate to the general fund of the city of Lost Angels for the year ending December 31, 2020. Prepare a statement of revenues, expenditures, and other changes in fund balance for the general fund for the period to be included in the fund financial statements. Assume that the fund balance at the beginning of the year was $180,000. Assume also that the city applies the purchases method to supplies. Receipt within 60 days serves as the definition of available resources. Collects property tax revenue of $700,000. A remaining assessment of $100,000 will be collected in the subsequent period. Half of that amount should be received within 30 days, and the remainder approximately five months after the end of the year. Spends $200,000 on three new police cars with 10-year lives. The anticipated price was $207,000 when the cars were ordered. The city calculates all depreciation using the straight-line method with no expected residual value. The city applies the…arrow_forwardChanges in mix of revenues and expenditures must be interpreted with care. The data that follow were drawn from the city of Boulder, Colorado’s CAFR. Dates have been changed. They are from two statistical-section schedules showing the mix of revenue and expenditures for a 10-year period. They include amounts only from the general fund, special revenue funds, and debt service funds. 2020 2021 (amounts in thousands) Revenues Sales and use taxes $ 97,397 $104,136 General property taxes 29,474 29,434 Other taxes 20,278 21,184 Charges for services 27,030 22,670 Intergovernmental 16,420 13,348 Proceeds from bonds and notes 54,830 Other 20,660 21,473 Total revenues $266,089 $212,245 Expenditures General government and administration $ 27,717 $ 30,185 Public safety 47,825 48,202 Public works 22,178 27,896 Housing and human services 13,384 20,226 Culture and recreation 25,677 28,089 Capital outlay 29,111 19,218 Debt service 13,574 16,375…arrow_forward
- The following transactions related to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020: 1. Beginning balances were: Cash, $100,000: Taxes Receivable, $200,000: Accounts Payable, $57,500: and Fund Balance, $242,500. 2. The budget was passed. Estimated revenues amounted to $1, 300,000 and appropriations totaled1,296,000. All expenditures are classified as General Government. 3. Property taxes were levied in the amount of $950,000. All of the taxes are expected to be collected before February 2021. 4. Cash receipts totaled $920,000 for property taxes and $315,000 from other revenue. 5. Contracts were issued for contracted services in the amount of $107,500. 6. Contracted services were performed relating to $96,000 of the contracts with invoices amounting to $93,000. 7. Other expenditures amounted to $995,000. 8. Accounts payable were paid in the amount of $1,140,000. 9. The books were closed. Required: c. Prepare a Balance Sheet for the General Fund…arrow_forwardThe following transactions relate to the general fund of the city of buffalo falls for the year ended december 31, 2020: 1. Begining Balances were: Cash, $80,000; Taxes receivable, $185,000; Accounts Payable, $50,000; and Fund Balance, $215,000. 2. The budget was passed. Estimated revenues amount to $1,200,000 and appropriations totaled $1,196,000. All expemditures are classifed as General Government. 3. property taxes were levied in the amount of $902,000. Alll of the taxes are expected to be collected before Febuary 2021. 4. Cash reciepts totaled $870,000 for property taxes and $275,000 from other revenue. 5. contracts were issued for contracted servies in the amount of $90,000. 6. Contracted services were preformed relating to $82,000 of the contracts with invoices ammounting to $80,000. 7. Other expenditures amounted to $950,000. 8. accounts payable were paid in the amount of $1,070,000. 9. The books were closed. Required: a. Prepare Jounal entries for the above tranactions. b.…arrow_forwardPrepare the journal entries for the following transactions to consolidate financial statements from fund-level statements to government-wide statements. 1...Compensated absences earned during the year was $225. 2....At the beginning of the year, long term liabilities was $2,200. 3....During the year, new long-term liabilities were incurred for $275.arrow_forward
- Choose the correct.At the end of the current year, a government reports a fund balance—assigned balance of $9,000 in connection with an encumbrance. What information is being conveyed?a. A donor has given the government $9,000 that must be used in a specified fashion.b. The government has made $9,000 in commitments in one year that will be honored in the subsequent year. c. Encumbrances exceeded expenditures by $9,000 during the current year.d. The government spent $9,000 less than was appropriated.arrow_forwardPrepare entries in general journal form to record the following transactions in the Roadway Fund general ledger accounts for City of Kettering for the fiscal year 2018. Use modified accrual accounting. At the beginning of the fiscal year, the fund $1,360,000 was offset by the assigned fund balance in the same amount. The city was awarded $4,200,000 for road inspections and repairs during the year. The award requires reimbursement for expenditures, not an allotment upfront. Work contracted for the year amounted to $4,175,000. Invoices received for the work performed totaled $4,150,000. $3,980,000 of that amount was paid in cash as of year-end. The state reimbursed the city $4,000,000 for the completed work before year-end. Prepare a statement of Revenues, Expenditures, and Changes in Fund Balance for the Roadway Fund.arrow_forward4. The City of Grinders Creek maintains its books in a manner that facilitates the preparation of fund accounting statements and uses worksheet adjustments to prepare government-wide statements. General fixed assets as of the beginning of the year, which had not been recorded, were as follows: Land $ 8,500,000 Buildings 27,600,000 Improvements Other Than Buildings 24,500,000 Equipment 11,690,000 Accumulated Depreciation, Capital Assets 25,800,000 During the year, expenditures for capital outlays amounted to $9,000,000. Of that amount, $4,800,000 was for buildings; the remainder was for improvements other than buildings. The capital outlay expenditures outlined in (2) were completed at the end of the year (and will begin to be depreciated next year). For purposes of financial statement presentation, all capital assets are depreciated using the straight-line method, with no estimated salvage value. Estimated lives are as follows: buildings, 40 years; improvements…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
What is Fund Accounting?; Author: Aplos;https://www.youtube.com/watch?v=W5D5Dr0j9j4;License: Standard Youtube License