The Wayne City Council approved and adopted its general fund budget for 2016. The budget contained the
Question:
The Wayne City Council approved and adopted its general fund budget for 2016. The budget contained the following amounts:
During 2016, various transactions and events occurred which affected the general fund. The legal budgetary basis is used.
Required
For items 1—39, indicate whether the item should be debited (D), credited (C), or is not affected (N) in the general fund.
a. Items 1-5 involve recording the adopted budget
1. Estimated revenues
2. Fund balance—unassigned
3. Appropriations
4. Estimated other financing uses
5. Expenditures
b. Items 6-10 involve recording the 2016 property tax levy. It was estimated that \($500,000\) would be uncollectible.
6. Property taxes receivable—current
7. Bad debt expense
8. Allowance for uncollectibles—current
9. Revenues
10. Estimated revenues
c. Items 11-15 involve recording encumbrances at the time purchase orders are issued.
11. Encumbrances
12. Fund balance—assigned
13. Expenditures
14. Accounts payable
15. Purchases
d. Items 16-20 involve recording expenditures that had been previously encumbered in the current year.
16. Encumbrances
17. Fund balance —assigned
18. Expenditures
19. Accounts payable
20. Purchases
e. Items 21-25 involve recording the transfer made to the Library debt service fund. No previous entries were made regarding this transaction.
21. Fund balance —assigned
22. Due from Library debt service fund
23. Cash
24. Other financing uses
25. Encumbrances
f. Items 26-36 involve recording the closing entries (other than encumbrances) for 2016.
26. Estimated revenues
27. Due to special revenue fund
28. Appropriations
29. Estimated other financing uses
30. Expenditures
31. Revenues
32. Other financing uses
33. Bonds payable
34. Bad debt expense
35. Depreciation expense
36. Fund balance—assigned
g. Items 37-39 involve recording the closing entry related to \($1,200,000\) of outstanding encumbrances at the end of 2016.
37. Encumbrances
38. Fund balance—assigned
39. Fund balance—unassigned
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