12 4 SeeExhibit 12 4for opening account balances Exhibit 12 4 General Fund Debt Service Fund Capital Projects Fund Cash 300,000 4,000 Real estate taxes receivable 20,000 State grants receivable 10,000 Due from general fund 16,000 Salaries payable 90,000 Due to debt service fund 16,000 Fund balance unrestricted net assets 223,000 20,000 Transactions Simonsen Village has employees who earned $400,000 for the year At the end of the year, the salaries payable balance was $10,000 Note that $200,000 of wages related to general government, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department Inventory was ordered by Simonsen Village The entire order was received The bill for the inventory purchase was $10,000 By the end of the fiscal year, it had used $6,000 of the inventory, but no payment had been made The purchases method is used Each of the three departments had used $2,000 of inventory The remaining inventory was all earmarked for education Simonsen Villages major source of funds is real estate taxes Total Tax bills issued were for $300,000 Total collections were the $20,000 from the previous years ending balance in taxes receivable and $260,000 of this years taxes Eighty percent of the outstanding balance at year end is expected to be collected early in the next fiscal year Inventory was ordered by Simonsen Village The entire order was received The bill for the inventory purchase was $10,000 By the end of the fiscal year, it had used $6,000 of the inventory, but no payment had been made The purchase method is used Each of the three departments had used $2,000 of inventory The remaining inventory was all earmarked for education Simonsen Village is entitled to receive unrestricted grants from the state During the Year, grants in the amount of $100,000 were made The total collections on grants were just $20,000 This $20,000 consisted of $10,000 that the state owed for the previous year and $10,000 for the current years grant The state will be paying the balance owed to Simonsen Village within 30 days after the year ends During The Year, Simonsen Village Was Legally Required To Transfer $60,000 to its debt service fund A total of $70,000 of cash was paid to the debt service fund In years when the full required transfer is not made, the debt service fund has a receivable (Due From General Fund) If more than the required amount is paid, the debt service funds receivable declines Simonsen Village acquired a new fire truck early in the year for $200,000 The Firetruck Is expected to last 10 years and has no salvage value It was financed by a long term note for the full amount Simonsen Village has a capital projects fund The interest and principal due on Simonsen Villages debt during the year and paid from debt service fund were $8,000 and $30,000, respectively The interest covers all long term borrowing by Simonsen Village The principal relates to the fire truck purchased during the year Question 1 How would these transactions look in the General Fund, Debt Service Fund, and Capitol Projects Fund Balance Sheets General Fund Liabilities and Fund Balance Assets Liabilities Fund Balance and Changes in Fund Balance Real Cash Real Estate Taxes Receivable State Grants Receivable Accounts Payable Due to Debt Service Fund Deferred Tax Revenue Salaries Payable Fund Balance Beginning Balance Transaction 1 Transaction 2 Transaction 3a Transaction 3b Transaction 4a Transaction 4b Transaction 5 Transaction 6a Transaction 6b Transaction 7 Ending Balance $0 $0 $0 $0 $0 $0 $0 $0 Debt Services Liabilities and Fund Balance Assets Liabilities Fund Balance and Changes in Fund Balance Cash Due From General Fund Fund Balance Beginning Balance Transaction 1 Transaction 2 Transaction 3 Transaction 4 Transaction 5 Transaction 6 Transaction 7 Ending Balance $0 $0 $0 $0 Capital Proj Liabilities and Fund Balance Assets Liabilities Fund Balance and Changes in Fund Balance Cash Due From Fund Fund Balance Beginning Balance Transaction 1 Transaction 2 Transaction 3 Transaction 4 Transaction 5 Transaction 6a Transaction 6b Transaction 7 Ending Balance $0 $0 $0 $0

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12-4. SeeExhibit 12-4for opening account balances. Exhibit 12-4 General Fund Debt Service Fund Capital Projects Fund Cash 300,000 4,000 Real estate taxes receivable 20,000 State

12-4. SeeExhibit 12-4for opening account balances.

Exhibit 12-4	General Fund	Debt Service Fund	Capital Projects Fund
Cash	300,000	4,000
Real estate taxes receivable	20,000
State grants receivable	10,000
Due from general fund		16,000
Salaries payable	90,000
Due to debt service fund	16,000
Fund balance unrestricted net assets	223,000	20,000

Transactions:

Simonsen Village has employees who earned $400,000 for the year. At the end of the year, the salaries payable balance was $10,000. Note that $200,000 of wages related to general government, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department.
Inventory was ordered by Simonsen Village.The entire order was received. The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6,000 of the inventory, but no payment had been made. The purchases method is used. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education.
Simonsen Villages major source of funds is real estate taxes.Total Tax bills issued were for $300,000. Total collections were the $20,000 from the previous years ending balance in taxes receivable and $260,000 of this years taxes. Eighty percent of the outstanding balance at year-end is expected to be collected early in the next fiscal year. Inventory was ordered by Simonsen Village.The entire order was received. The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6,000 of the inventory, but no payment had been made. The purchase method is used. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education.
Simonsen Village is entitled to receive unrestricted grants from the state.During the Year, grants in the amount of $100,000 were made. The total collections on grants were just $20,000. This $20,000 consisted of $10,000 that the state owed for the previous year and $10,000 for the current years grant. The state will be paying the balance owed to Simonsen Village within 30 days after the year ends.
During The Year, Simonsen Village Was Legally Required To Transfer $60,000 to its debt service fund. A total of $70,000 of cash was paid to the debt service fund. In years when the full required transfer is not made, the debt service fund has a receivable (Due From General Fund). If more than the required amount is paid, the debt service funds receivable declines.
Simonsen Village acquired a new fire truck early in the year for $200,000.The Firetruck Is expected to last 10 years and has no salvage value. It was financed by a long-term note for the full amount. Simonsen Village has a capital projects fund.
The interest and principal due on Simonsen Villages debt during the year and paid from debt service fund were $8,000 and $30,000, respectively. The interest covers all long-term borrowing by Simonsen Village. The principal relates to the fire truck purchased during the year.

Question 1: How would these transactions look in the General Fund, Debt Service Fund, and Capitol Projects Fund Balance Sheets

General Fund
					Liabilities and Fund Balance
	Assets	=	Liabilities	+	Fund Balance and Changes in Fund Balance
		Real
Cash	Real Estate Taxes Receivable	State Grants Receivable	Accounts Payable	Due to Debt Service Fund	Deferred Tax Revenue	Salaries Payable	Fund Balance
Beginning Balance
Transaction # 1


Transaction # 2


Transaction # 3a
Transaction # 3b
Transaction # 4a
Transaction # 4b
Transaction # 5
Transaction # 6a
Transaction # 6b
Transaction # 7
Ending Balance	$0	$0	$0	=	$0	$0	$0	$0	$0

Debt Services				Liabilities and Fund Balance
	Assets	=	Liabilities	Fund Balance and Changes in Fund Balance
	Cash	Due From General Fund			Fund Balance
Beginning Balance
Transaction # 1
Transaction # 2
Transaction # 3
Transaction # 4
Transaction # 5
Transaction # 6
Transaction # 7

Ending Balance	$0	$0	=	$0	$0

Capital Proj				Liabilities and Fund Balance
	Assets	=	Liabilities	Fund Balance and Changes in Fund Balance
	Cash	Due From Fund			Fund Balance
Beginning Balance
Transaction # 1
Transaction # 2
Transaction # 3
Transaction # 4
Transaction # 5
Transaction # 6a
Transaction # 6b
Transaction # 7

Ending Balance	$0	$0	=	$0	$0