17. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivable and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 17a General Fund Record the reclassification of the unpaid property taxes of current year. 17b 17c Taxes Receivable-Delinquent Taxes Receivable-Current 310,000 310,000 Record the reclassification of the related allowance for estimated uncollectible property taxes of current year. Allowance for Uncollectible Current Taxes 73,800 Allowance for Uncollectible Delinquent Taxes 73,800 Record the reclassification of the property tax revenue of current year. Revenues 3,383,751 Deferred Inflows of Resources-Unavailable Revenues 3,383,751 X 17d Governmental Activities Record the reclassification of the unpaid property taxes of current year. Taxes Receivable-Delinquent 310,000 Taxes Receivable-Current 310,000 17e 17f Record the reclassification of the related allowance for estimated uncollectible property taxes of current year. Allowance for Uncollectible Current Taxes 73,800 Allowance for Uncollectible Delinquent Taxes Record the reclassification of the property tax revenue of current year. No Journal Entry Required 73,800 18. A physical inventory of materials and supplies at June 30, 2023, showed a total of $20,500. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal.) 18 General Fund Inventory of Supplies Fund Balance-Nonspendable-Inventory of Supplies Governmental Activities No Journal Entry Required 3,700 3,700 Cash Sales Taxes Receivable Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources-Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned Debits Credits $ 418,000 18,000 590,000 $ 196,000 26,980 11,860 16,800 155,500 66,490 420,000 16,800 203,130 $1,069,780 $1,069,780 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2023. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. c. Prepare a General Fund balance sheet as of June 30, 2023. d. Prepare a General Fund statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2023. Required A Required B Required C Required D Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2023. Avoid use of functional details for expenses and itemization of revenue accounts. So, use of account names "Expenses" and "Revenues" will suffice wherever required. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Transaction Fund/Governmental Activities General Journal Debit Credit 1. The budget for FY 2023 provided for General Fund estimated revenues totaling $3,280,000, appropriations totaling $3,070,000, and an other financing use-interfund transfer out of $163,000. 1 General Fund Estimated Revenues Appropriations Budgetary Fund Balance Estimated Other Financing Uses 3,280,000 3,070,000 47,000 163,000 2. The city council authorized temporary borrowing of $570,000 in the form of a 120-day tax anticipation note obtained from a local bank. General Fund and Governmental Activities Cash Tax Anticipation Notes Payable 570,000 570,000 3. The property tax levy for FY 2023 was recorded. Net assessed valuation of taxable property for the year was $41,000,000, and the tax rate was $6 per $100. It was estimated that 3 percent of the levy would be uncollectible. 3 General Fund Taxes Receivable-Current Allowance for Uncollectible Current Taxes Revenues Governmental Activities Taxes Receivable-Current Allowance for Uncollectible Current Taxes Revenues 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,130,000. General Fund 4 Encumbrances Encumbrances Outstanding Governmental Activities No Journal Entry Required 2,460,000 73,800 2,386,200 2,460,000 73,800 2,386,200 2,130,000 2,130,000 5. $2,150,000 of current taxes, $390,270 of delinquent taxes, $21,270 of interest and penalties, and $18,000 of accrued sales taxes were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. Record the $2,150,000 of current taxes, $390,270 of delinquent taxes, and $21,270 of interest and penalties collected. 5a General Fund Cash 2,579,540 Taxes Receivable-Current 2,150,000 Taxes Receivable-Delinquent 390,270 Sales Taxes Receivable Interest and Penalties Receivable 18,000 21,270 5b Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Deferred Inflows of Resources-Unavailable Revenues Revenues 411,540 411,540 5c Governmental Activities Record the $2,150,000 of current taxes, $390,270 of delinquent taxes, and $21,270 of interest and penalties collected. Cash 2,579,540 Taxes Receivable-Current 2,150,000 Taxes Receivable-Delinquent 390,270 Sales Taxes Receivable 18,000 Interest and Penalties Receivable 21,270 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. 5d No Journal Entry Required 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $39,130, of which 30 percent was estimated to be uncollectible. General Fund 6 Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties 39,130 Revenues Governmental Activities Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Revenues 11,739 27,391 39,130 11,739 27,391 7. Because of a change in state law, the city was notified that it will receive $94,000 less in intergovernmental revenues than was budgeted. General Fund Budgetary Fund Balance 7 Estimated Revenues Governmental Activities No Journal Entry Required 94,000 94,000 8. Delinquent taxes of $13,492 were deemed uncollectible and written off. The associated interest and penalties of $1,022 also were written off. General Fund 8 Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 13,492 1,022 13,492 1,022 Governmental Activities Allowance for Uncollectible Delinquent Taxes 13,492 Allowance for Uncollectible Interest and Penalties 1,022 Taxes Receivable-Delinquent 13,492 Interest and Penalties Receivable 1,022 9. Total payroll during the year was $889,490. Of that amount, $68,050 was withheld for employees' FICA tax liability, $110,710 for employees' federal income tax liability, and $35,100 for state taxes; the balance was paid to employees in cash. 9 General Fund Expenditures Due to Federal Government Due to State Government Cash Governmental Activities Expenses Due to Federal Government Due to State Government Cash 10. The employer's FICA tax liability was recorded for $68,050. 10 General Fund 889,490 178,760 35,100 675,630 889,490 178,760 35,100 675,630 Expenditures 68,050 Due to Federal Government 68,050 Governmental Activities Expenses 68,050 Due to Federal Government 68,050 11. Cash collections from sales taxes totaled $832,000 and from revenue sources other than taxes were $117,000. In addition, sales taxes receivable due July 1 were accrued in the amount of $12,700. 11 General Fund Cash Sales Taxes Receivable Revenues Governmental Activities Cash Sales Taxes Receivable Revenues 949,000 12,700 961,700 949,000 12,700 961,700 12. Amounts due to the federal government as of June 30, 2023, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund Due to Federal Government Due to State Government Vouchers Payable 313,300 35,100 348,400 Governmental Activities Due to Federal Government Due to State Government Vouchers Payable 313,300 35,100 348,400 13. Purchase orders and contracts encumbered in the amount of $2,058,040 were filled at a net cost of $2,057,570, which was vouchered. 13a General Fund Record the reversal of encumbrances entry of 2023. Encumbrances Outstanding 13b Encumbrances 2,058,040 2,058,040 Record the receipt of vouchers for the purchase orders and contracts encumbered for 2023. Expenditures 2,057,570 Vouchers Payable 2,057,570 Governmental 13c Record the receipt of vouchers for the purchase orders and contracts encumbered for 2023. Activities Expenses 2,057,570 Vouchers Payable 2,057,570 14. Vouchers payable totaling $2,371,660 were paid after deducting a credit for purchases discount of $8,730 (credit Expenditures). 14 General Fund Vouchers Payable Cash Expenditures Governmental Activities Vouchers Payable Cash Expenses 15. The tax anticipation note of $570,000 was repaid. Interest totaled $10,700. 15 General Fund Tax Anticipation Notes Payable Expenditures Cash Governmental Activities Tax Anticipation Notes Payable Expenses Cash 16. A transfer of $163,000 was made to establish a special revenue fund to account for expenditures related to a federal grant. General Fund 16 Other Financing uses-Interfund Transfers Out Cash Governmental Activities No Journal Entry Required 2,371,660 2,362,930 8,730 2,371,660 2,362,930 8,730 570,000 10,700 580,700 570,000 10,700 580,700 163,000 163,000