ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 17, Problem 17.18.3P
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 treatment of appropriations in the adopted budget for general fund.
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Computation of a government's budgetary cushion
Following are extracts from a city's General Fund balance sheet and statement of revenues, expenditures, and changes in fund balance.
General Fund Extracts
Fund Balance:
Nonspendable (supplies inventory)
$59,760
28,600
Restricted (intergovernmental grant)
110,000
Assigned (appropriated for next year's budget)
Assigned (for future OPEB expenditures)
16,500
Unassigned
1,292,740
Total fund balance
$1,507,600
Total revenues
$31,339,000
Transfers in (all recurring)
$400,400
a) How much (in dollars) is available to help balance future budgets? $
b) Calculate the budgetary cushion.
Round the percentage to one decimal.
%
c) Using the rule of thumb suggested in the text, would the budgetary cushion be considered
be considered reasonable, too high, or too low?
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…
subsidiary ledgers for the fiscal year ended. Assume the beginning fund balances are $140 (in thousands) and that the budget was not
amended during the year.
Subsidiary Ledger Account Balances (in thousands)
For the Fiscal Year
Estimated Revenue
Taxes
Fines & Forfeits
City of Greenville
General Fund
Intergovernmental Revenue
Charges for Services
Revenues
Taxes
Fines & Forfeits
Intergovernmental Revenue
Charges for Services
Appropriations
General Government
Public Safety
Public Works
Culture & Recreation
Estimated Other Financing Uses
Interfund Transfers Out
Expenditures
General Government
Public Safety
Public Works
Culture & Recreation
Encumbrances
General Government
Public Safety
Public Works
D
Culture & Recreation
Other Financing Uses
Interfund Transfers Out
Debits
6,048
303
484
370
1,622
3,347
1,443
703
1
26
10
0
36
Credits
6,054
308
484
368
1,625
3,375
1,454
724
36
Required
a. Prepare a General Fund statement of revenues, expenditures, and changes in fund balance.
b. Prepare a…
Chapter 17 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
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
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