1. The General Fund paid the $19,400 reported as Due to Other Funds at the end of FY 2022. This amount was reported as Internal Payables to Business-type Activities at the government-wide level. Do not record this transaction in the Water Utility Fund until instructed to do so in Chapter 7 of this case.

Required: Record the payment of this amount in both the General Fund and governmental activities general journals.

2. Delinquent taxes receivable in the amount of $18,000 were written off as uncollectible. Interest and penalties accrued on these taxes in the amount of $1,350 were also written off.

Required: Record the writeoffs in both the General Fund and governmental activities general journals.

3.  General Fund payrolls for the year totaled $6,673,038. Of that amount, $1,020,975 was withheld for employees' federal income taxes; $1,134,416 for federal payroll taxes; $381,760 for employees’ state income taxes; $420,296 for retirement funds administered by the state government; and the remaining $3,715,591 was paid to employees in cash. The City of Bingham does not record encumbrances for payrolls. The payrolls were chargeable against the following functions’ appropriations:

General Government $ 2,200,376

Public Safety 2,731,644

Public Works 790,481

Health and Welfare 501,673

Culture and Recreation 448,864

Total $ 6,673,038

Required: Make summary journal entries for payroll in both the General Fund and governmental activities general journals for the year.

4.  The General Fund paid vouchers during the year in the amount of $3,515,000 as well as its liabilities for employees’ federal and state income taxes withheld and payroll taxes.

Required: Record the payment of these items in both the General Fund and governmental activities general journals.

5.  The General Fund transferred $75,000 to the debt service fund for a bond interest payment.

Required: Record this transaction in the General Fund only. The transaction has no effect at the government-wide level since it occurs between two governmental activities. Do not record this transaction in the debt service fund until instructed to do so in Chapter 6 of this case.

 6. Tax anticipation notes issued by the General Fund were paid at maturity at the face amount plus interest of $10,000.

Required: Record the payment of these items in both the General Fund and governmental activities general journals. For the General Fund charge Miscellaneous for the interest expenditure. At the government-wide level, debit Expenses—Interest on Tax Anticipation Notes.

7. The General Fund recorded liabilities of $35,000 to other funds for services received from the Water Utility Fund during the year. Of this amount, $23,500 should be charged to Public Safety and $11,500 to General Government.

Required: Record the receipt of these services and the associated liability in the General Fund and governmental activities journals. At the government-wide level the liability should be credited to Internal Payables to Business-type Activities. 

8. The year-end balance of supplies inventory is $7,000.

Required: Adjust the inventory of supplies account in both the General Fund and governmental activities journals. At the government-wide level expenses in General Government can be reduced by $7,000. In the General Fund, fund balance should be classified as non spendable.

9. The balances in the current taxes receivable and related estimated uncollectible accounts were reclassified as delinquent.

Required: Record the reclassification in the General Fund and governmental activities journals. Property tax revenues should be reduced and Deferred Inflows of Resources should be recorded in the General Fund, since these revenues are considered “unavailable” under the modified accrual basis of accounting used in governmental funds. At the government-wide level, the property taxes continue to be included in current year revenue.

10. Interest and penalties of $59,580 were recorded on delinquent taxes, of which $10,750 was estimated to be uncollectible. Sales taxes receivable of $21,722 were also recorded.

Required: Interest and penalties should be recorded as Deferred Inflows of Resources, rather than interest and penalties revenue, in the General Fund. On the other hand, sales taxes are recorded as revenue in the General Fund since they will be collected shortly after year end. At the government-wide level, both the interest and penalties and sales taxes are recorded as current year revenue.

11. In view of unexpected revenue and expenditure developments the city council revised the budgets for the current year as shown below:

Budget Adjustments

Estimated Revenues:

Property Tax $7,500 increase

Licenses and Permits 6,000 decrease

Fines and Forfeits 4,000 increase

Appropriations:

Culture and Recreation $3,000 decrease

Public Works 5,000 decrease

General Government 4,000 increase

Miscellaneous 3,000 increase

Required: Record the budget amendments in the General Fund general journal only. Budgetary items do not affect the government-wide accounting records.