Benson City had the following transactions involving resource outflows involving its general fund for the year ended
Question:
Benson City had the following transactions involving resource outflows involving its general fund for the year ended June 30, 20X8:
1. During March 20X8, the general fund transferred \(\$ 150,000\) to a capital projects fund to help pay for the construction of a new police station.
2. During August 20X7, the general fund ordered computer equipment at an estimated cost of \(\$ 200,000\). The equipment was received in September \(20 \times 7\), and an invoice for \(\$ 202,000\) was paid.
3. In November 20X7, the city authorized the establishment of an internal service fund for the maintenance of city owned vehicles. The general fund was authorized to transfer \(\$ 500,000\) to the internal service fund in late November. Of this amount, \(\$ 200,000\) will be repaid by the internal service fund in two years with interest at 6 percent, while the remaining \(\$ 300,000\) represents a permanent transfer to the internal service fund.
4. In May 20X8, the general fund made a \(\$ 15,000\) payment to one of the city's special revenue funds. The amount paid represented a reimbursement to the special revenue fund for expending \(\$ 15,000\) of its resources on behalf of the general fund.
5. During the year ended June \(30,20 \times 8\), the general fund received bills from the city's water department totaling \(\$ 12,000\). Of this amount, the general fund paid all but \(\$ 500\) by June 30, 20X8.
6. During the year ended June \(30,20 \mathrm{X}\), the general fund acquired supplies costing \(\$ 35,000\) and paid the salaries and wages of its employees totaling \(\$ 900,000\). The general fund uses the purchase method of accounting for its supplies. At June 30, 20X8, unused supplies in the general fund amounted to \(\$ 5,000\).
7. At June \(30,20 \mathrm{X} 8\), outstanding encumbrances for goods ordered in the general fund amounted to \(\$ 25,000\). Outstanding encumbrances do not lapse at the end of the fiscal year.
8. On March 15, 20X8, the general fund repaid a loan to a local bank. The amount paid was \(\$ 265.000\), of which \(\$ 250,000\) represented the principal borrowed. The general fund borrowed the money in July 20X7, and used collections of the property tax levy to repay the loan.
9. For the year ended June \(30,20 \mathrm{X} 8\), the general fund transferred \(\$ 95,000\) to the city's pension trust fund. The amount transferred represented the employer's contribution to the pension trust on behalf of the employees of the general fund.
10. During May 20X8, the general fund decided to lease several copying machines instead of purchasing them. The lease arrangement was properly accounted for as an operating lease. By June 30.20X8, the general fund had made lease payments of \(\$ 10,000\) to the owner of the machines.
\section*{Required}
Prepare a schedule showing the amount of expenditures that should be reported by Benson's general fund on the statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 20X8.
17.9 Benson City had the following transactions involving resource outflows involving its general fund for the year ended June 30, 20X8:
1. During March 20X8, the general fund transferred \(\$ 150,000\) to a capital projects fund to help pay for the construction of a new police station.
2. During August 20X7, the general fund ordered computer equipment at an estimated cost of \(\$ 200,000\). The equipment was received in September \(20 \times 7\), and an invoice for \(\$ 202,000\) was paid.
3. In November 20X7, the city authorized the establishment of an internal service fund for the maintenance of city owned vehicles. The general fund was authorized to transfer \(\$ 500,000\) to the internal service fund in late November. Of this amount, \(\$ 200,000\) will be repaid by the internal service fund in two years with interest at 6 percent, while the remaining \(\$ 300,000\) represents a permanent transfer to the internal service fund.
4. In May 20X8, the general fund made a \(\$ 15,000\) payment to one of the city's special revenue funds. The amount paid represented a reimbursement to the special revenue fund for expending \(\$ 15,000\) of its resources on behalf of the general fund.
5. During the year ended June \(30,20 \times 8\), the general fund received bills from the city's water department totaling \(\$ 12,000\). Of this amount, the general fund paid all but \(\$ 500\) by June 30, 20X8.
6. During the year ended June \(30,20 \mathrm{X}\), the general fund acquired supplies costing \(\$ 35,000\) and paid the salaries and wages of its employees totaling \(\$ 900,000\). The general fund uses the purchase method of accounting for its supplies. At June 30, 20X8, unused supplies in the general fund amounted to \(\$ 5,000\).
7. At June \(30,20 \mathrm{X} 8\), outstanding encumbrances for goods ordered in the general fund amounted to \(\$ 25,000\). Outstanding encumbrances do not lapse at the end of the fiscal year.
8. On March 15, 20X8, the general fund repaid a loan to a local bank. The amount paid was \(\$ 265.000\), of which \(\$ 250,000\) represented the principal borrowed. The general fund borrowed the money in July 20X7, and used collections of the property tax levy to repay the loan.
9. For the year ended June \(30,20 \mathrm{X} 8\), the general fund transferred \(\$ 95,000\) to the city's pension trust fund. The amount transferred represented the employer's contribution to the pension trust on behalf of the employees of the general fund.
10. During May 20X8, the general fund decided to lease several copying machines instead of purchasing them. The lease arrangement was properly accounted for as an operating lease. By June 30.20X8, the general fund had made lease payments of \(\$ 10,000\) to the owner of the machines.
\section*{Required}
Prepare a schedule showing the amount of expenditures that should be reported by Benson's general fund on the statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 20X8.
Step by Step Answer:
Advanced Financial Accounting
ISBN: 9780072444124
5th Edition
Authors: Richard E. Baker, Valdean C. Lembke, Thomas E. King