The City of Castleton€™s General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year:

During the year ended June 30, 2020, the following transactions, in summary form, with subsidiary ledger detail omitted, occurred:
1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,140,000 and appropriations totaling $3,100,000.
2. The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses€”General Government in the governmental activities journal).
3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $43,000,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be un-collectible.
4. Purchase orders and contracts were issued to vendors and others in the amount of $2,060,000.
5. $1,961,000 of current taxes, $103,270 of delinquent taxes, and $3,570 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end.
6. Additional interest and penalties on delinquent taxes were accrued in the amount of $3,430, of which 30 percent was estimated to be uncollectible.
7. Because of a change in state law, the city was notified that it will receive $80,000 less in intergovernmental revenues than was budgeted.
8. Delinquent taxes of $12,792 were deemed un-collectible and written off. The associated interest and penalties of $952 also were written off.
9. Total payroll during the year was $819,490. Of that amount, $62,690 was withheld for employees€™ FICA tax liability, $103,710 for employees€™ federal income tax liability, and $34,400 for state taxes; the balance was paid to employees in cash.
10. The employer€™s FICA tax liability was recorded for $62,690.
11. Revenues from sources other than taxes were collected in the amount of $947,000.

12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered.
13. Purchase orders and contracts encumbered in the amount of $1,988,040 were filled at a net cost of $1,987,570, which was vouchered.
14. Vouchers payable totaling $2,201,660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures).
15. The tax anticipation note of $500,000 was repaid.
16. All unpaid current year€™s property taxes became delinquent. The balances of the current taxes receivables and related un-collectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year.
17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $9,100. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal.) 

Required
a. Record in general journal form the effect of the above transactions on the General Fund and governmental activities for the year ended June 30, 2020. Do not record subsidiary ledger debits and credits.
b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts.
c. Prepare a General Fund balance sheet as of June 30, 2020.
d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements.

Transcribed Image Text:

Debits Credits $276,120 Cash Taxes Receivable-Delinquent 183,000 $ 21,960 Allowance for Uncollectible Delinquent Taxes 6,280 Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties 1,160 Inventory of Supplies Vouchers Payable 6,100 48,500 29,490 Due to Federal Government Deferred Inflows of Resources-Unavailable Revenues 166,160 Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned 6,100 198,130 $471,500 $471,500