1. Ben City maintains its books and records in a manner that facilitates the preparation of fund financial statements. Prepare all necessary journal entries to record the following events related to property tax revenues for the year ended December 31, 2015. The city has adopted the 60-day rule for property tax revenue recognition.

a. On January 3, 2015 the city council levied property taxes of $2 million to support general government operations, due in two equal installments on June 20 and December 20,2014. The property taxes were levied to finance the 2015 budget, which had been adopted on November 3, 2014. Historically 1.5 percent of property taxes are uncollectible.

b. During 2015 the City collected $1.8million.

c. In January 2016 the City collected an additional $175,000 in 2015 taxes.

d. The City reclassified as delinquent the $25,000 of 2015 taxes not yet collected.

e. In December 2016 the City wrote off $10,500 of 2015 taxes that it determined would be uncollectible.

2. Assume that the Effingham County maintains its books and records in a manner that facilitates preparation of the fund financial statements. The county formally integrates the budget into the accounting system and uses the encumbrance system. All appropriations lapse at year-end. At the beginning of the fiscal year, the county had the following balances in its accounts. All amounts are in millions.

REQUIRED: Prepare the necessary entries for the current fiscal year.

Cash $250

Fund balance unassigned $100

Reserve for encumbrances

(committed or assigned) 150

(a) The County board approved a budget with revenues estimated to be $875 and expenditures of $950.

(b) The County ordered supplies at an estimated cost of $70 and equipment at an estimated cost of $65.

(e) The County incurred salaries of $350, repairs of $90, rent $55, and utilities of $60 during the year. The County paid these items in cash.

(f) The County received the equipment at an actual cost of $75.

(g) The County earned and collected, in cash, revenues of $925.