Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis. The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

Question

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Answer 1

Question

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

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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…

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Answer 2

Question

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

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Answer 3

Question

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

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Answer 4

Question

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

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Answer 5

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

Answer 6

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

Answer 7

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

Answer 8

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

Answer 9

a

Expert Solution

Answer 10

a

Expert Solution

Answer 11

Expert Solution

Answer 12

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

Answer 13

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

Answer 14

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)