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Posted on Jun 28, 2024

10. Journal Entries. Prepare the journal entries necessary in the fund-based and government-wide journals to record each of the following transactions. Be sure to indicate

10. Journal Entries. Prepare the journal entries necessary in the fund-based and government-wide journals to record each of the following transactions. Be sure to indicate to which fund your entry(ies) apply in the fund-based journal and the type of activity (GT = governmental-type activities, BT = business-type activities) in the government-wide journal. Additionally, if the entry is the same at the government-wide level, indicate this with \"SAME\" and if no entry applies then indicate with \"NE\". If a transaction results in multiple entries, YOU SHOULD INDICATE CLEARLY WHETHER EACH ENTRY IS CHANGED, THE SAME, OR RESULTS IN NO ENTRY. (5 points each) (1) During January, property owners were billed for $3,000,000 in property taxes for the current tax years' levy. Of this amount, 4% is estimated to be uncollectible. Fund-Based Journal Fund Type: Government-wide Journal Activity Type: (2) The General Fund transferred $100,000 to the Motor Pool Internal Service Fund to be used for general operating purposes. Fund-Based Journal Fund Type: Fund Type: Government-wide Journal Activity Type: (3) The General Fund received a $2000 water bill from the city's Water Utility Fund and immediately paid it. Fund Type: Fund-Based Journal Government-wide Journal Activity Type: Governmental Fund Type: Activity Type: (4) The city purchased new computer equipment costing $19,000 by paying $3,000 in cash and signing a long-term note payable for $16,000. Fund-Based Journal Fund Type: Government-wide Journal Activity Type: (5) The following were collected in cash: Current taxes of 400,000, delinquent taxes of 11,000, other revenues of 10,000 from a number of sources. Fund-Based Journal Fund Type: Government-wide Journal Activity Type: (6) Total payroll was 500,000. Of that amount, the following were withheld: 18,000 for employees' FICA liability; 60,000 for employees' federal income tax liability; and 20,000 for state tax. The balance was paid in cash. Fund-Based Journal Fund Type: Government-wide Journal Activity Type: (7). On July 1, 20x4, Brook City established an appropriate fund to handle the transactions involving the construction of a new city hall. The city approved a $3,000,000, 6 percent, ten-year general obligation serial bond issue to finance the project on July 15, 20x4. The bonds were sold for $3,136,696 on August 1, 20x4, with interest (6%) and principal ($300,000) payments beginning August 1, 20x5. The premium will be used to offset the bond principal and interest payment. [Note: You are to make only the August 1, 20x4 entr(ies). The premium is transferred to debt service fund. Effective interest rate is about 5%.] Fund-Based Journal CPF Government-Wide Journal GTA DSF (8). On August 5, 20x4, the city signed a construction contract for the city hall to be built by SteelBuild Construction Co. in the amount of $3,000,000. Fund-Based Journal CPF Government-Wide Journal GTA (9). On February 16, 20x5, the contractor's bill for $750,000 was received based on certification that the work was one-fourth completed. The contractor was paid for one-fourth of the contract less a 6% percent retained percentage to ensure performance. Fund-Based Journal CPF Government-Wide Journal GTA (10).On July 6, 20x5, the General Fund transferred $480,000 to the fund responsible for servicing the serial bonds which will be used with the premium to pay for the first interest and principal payment in August. Fund-Based Journal Government-Wide Journal GF GTA DSF (11). Interest (6% of face value) and principal (1/10 of face value) on the serial bonds was paid on August 1, 20x5. Premium amortization (if necessary) amounts to $23,165. Fund-Based Journal DSF Government-Wide Journal GTA (12). The City of Commerce signs a capital lease for the purchase of machinery on January 1, 20x6. The terms of the lease state that the City will make a $2,000 payment on January 1, 20x6 and equal payments of $2,000 for each January 1 for the next five years, beginning January 1, 20x7. The normal borrowing rate for the City of Commerce is 5%. The 2,000 payment is made on January 1, 20x6. Fund-Based Journal CPF Government-Wide Journal GTA (13). On January 1, 20x7, the city makes the first annual payment on the capital lease agreement described in the previous transaction. Fund-Based Journal Fund type: Government-Wide Journal Activity type: 11. Please complete the following financial statements. (5 points) TOWN OF DEX RECREATION CENTER CONSTRUCTION CAPITAL PROJECT FUND BALANCE SHEET DECEMBER 31, 2011 ASSETS CASH $ 1,400,000 TOTAL ASSETS $ 1,400,000 LIABILITIES AND FUND BALANCES LIABILITIES: VOUCHERS PAYABLE CONTRACTS PAYABLERETAINED PERCENTAGE TOTAL LIABILITIES $ 1,300 60,000 ? FUND BALANCES: Fund balance-nonspendable Fund balance-spendable 1,000,000 ? TOTAL FUND BALANCES ? TOTAL LIABILITIES AND FUND BALANCES ? 12. The following is a pre-closing trial balance for Sun City's General Fund as of June 30, 2009: Debit s Cash 126,500 Tax Receivable-current Credits 29,000 Estimated uncollectible current taxes 3000 Accounts payable 7,800 Due to other funds 5,500 Tax anticipation notes payable 50,000 Reserve for encumbrance 5,000 Fund Balance 70,200 Estimated Revenues 110,000 Revenues 112,000 Appropriations 99,000 Encumbrances 5,000 Expenditures 93,000 Budgetary FB Totals 11,000 363,500 363,500 What is the fund balance as of June 30, 2009, after all closing entries have been made? Show your work, including closing journal entries. (7 points) 13. "Infrastructure assets (e.g., roads, bridges, curbs and gutters, streets, etc.) need not be capitalized since they are immovable and not likely to be stolen." Do you agree or disagree? Explain your answer. (5 points)