41-45

The city council of Rapid City approved the following budgets for fiscal 2017:

PREPARE THE JOURNAL ENTRIES TO THE APPROPRIATE FUNDS (General, Capital, Debt Service)

41. All remaining unpaid property taxes were declared delinquent. The city comptroller concluded that an allowance for uncollectible taxes for property taxes should be 5% of the delinquent property taxes. (The city levied property taxes at the budgeted amount and established an allowance for uncollectible taxes and discounts equal to 5% of the taxes levied. THe city collected 95% of the property taxes levied in 2017. Taxpayers deducted 1% of levied property taxes in discounts for early payment of bills.) Hint: Creating allowance for uncollectible accounts reduces revenue.

42. Interest and penalties related to the delinquent property taxes were accrued at 3%, with 1% estimated to be uncollectible. The 1% estimated to be uncollectible means 1% of the interest and penalties receivable delinquent amount, not 1% of the original receivable amount.

43. After inspection, the city paid Hillside Construction and Palmer Engineering for the previously vouchered invoices, plus the retainage. (Hillside Construction completed 70% of the work on the park and submitted an invoice for $3,400,000. Palmer Engineering also completed 80% of their work and submitted an invoice for $540,000. The city vouchered these invoices. The city paid the vouchered construction contracts, less 5% retainage. The city received and vouchered the final invoices for the construction of the city park: (a) Hillside Construction for $1,540,000 and (b) Palmer Engineering for $140,000.)

44. The city paid 97% of the amount due to Federal government related to salaries. The city paid 100% of the amount due to state government related to salaries. (Refer to the following information: Salaries of 95% of the budgeted salaries were recorded as Salaries Food Inspection Program during the year. Of this amount, the following were withheld from employees: 15% for federal income taxes, 5% for state income taxes, 7.65% for FICA taxes. The remaining amount was paid to employees. The city recorded its share of FICA tax liability (7.65%) related to the food inspection program salaries.)

45. The city paid 630,000 of the vouchered park equipment.

Initial Data: Rapid City General Fund Postclosing Trial Balance December 31, 2016 Debits Credits Additional Information: 1. Encumbrances lapse if they are outstanding at the close of a fiscal year; however, the city honors all Cash Property Takes Receivable Deliquent Allowance for Uncollectible Delinguent Taxes Interest and Penalties Receivable Allow ance for Uncollectible Interest & Penalties Supplies Inventory Vouchers Payable Due to Federalovenment Fund Balance-Nonspendable-Supplies Inventory Fund Balance-Assigned Fund Balance-Unassigned $295,600 57,000 outstandingubrances, reported at the end of 2016 are reported as FundBalance- Assigned. $ 3,500 2. The city uses the purchases method to record the acquisition of supplies. The year-end supplies invento 4,200 is considered to be material and is reported in the city's financial statements. 200 7,700 36,400 2,800 7,700 3,300 310,600 $ 3645003907 Rapid City Capital Projects Fund Postclosing Trial Balance December 31, 2016 Additional Information: Debits Credits 1. Rapid City sold bonds in the amount of $5,400,000 in December 2016 to finance a new city park. Cash Due from State Government Fund Balance Restricted The bonds are payable semiannually (June 1 and December 1) over 20 years at 4% per year 2. In 2016, the State approved a grant for $250,000 to help fund the city park. The grant is collectible within 250,000 60 days after year end. The Federal government also approved a grant for $550,000, receivable June 1, 2016 3. Rapid City uses encumbrance accounting in the Capital Projects Fund. 4. Construction of the park is expected to be completed by the end of 2017. Any amounts remaining in the Capital Projects Fund must be transferred to the Debt Service Fund on completion of the park. Rapid City Debt Service Fund Postclosing Trial Balance December 31, 2016 Additional Information: 1. In December, $140,000 was transferred to the Debt Service Fund from the General Fund to pay the first Debits $140,000 Credits Cash Fund Balance Restricted principal payment on the bonds issued in the Capital Projects Fund and provide a small cash balance int debt service fund. $140,000 $140,000 $140,000 2. A special assessment tax will be levied over the next 10 fiscal years(2017-2026) to pay for the bond issue Initial Data: Rapid City General Fund Postclosing Trial Balance December 31, 2016 Debits Credits Additional Information: 1. Encumbrances lapse if they are outstanding at the close of a fiscal year; however, the city honors all Cash Property Takes Receivable Deliquent Allowance for Uncollectible Delinguent Taxes Interest and Penalties Receivable Allow ance for Uncollectible Interest & Penalties Supplies Inventory Vouchers Payable Due to Federalovenment Fund Balance-Nonspendable-Supplies Inventory Fund Balance-Assigned Fund Balance-Unassigned $295,600 57,000 outstandingubrances, reported at the end of 2016 are reported as FundBalance- Assigned. $ 3,500 2. The city uses the purchases method to record the acquisition of supplies. The year-end supplies invento 4,200 is considered to be material and is reported in the city's financial statements. 200 7,700 36,400 2,800 7,700 3,300 310,600 $ 3645003907 Rapid City Capital Projects Fund Postclosing Trial Balance December 31, 2016 Additional Information: Debits Credits 1. Rapid City sold bonds in the amount of $5,400,000 in December 2016 to finance a new city park. Cash Due from State Government Fund Balance Restricted The bonds are payable semiannually (June 1 and December 1) over 20 years at 4% per year 2. In 2016, the State approved a grant for $250,000 to help fund the city park. The grant is collectible within 250,000 60 days after year end. The Federal government also approved a grant for $550,000, receivable June 1, 2016 3. Rapid City uses encumbrance accounting in the Capital Projects Fund. 4. Construction of the park is expected to be completed by the end of 2017. Any amounts remaining in the Capital Projects Fund must be transferred to the Debt Service Fund on completion of the park. Rapid City Debt Service Fund Postclosing Trial Balance December 31, 2016 Additional Information: 1. In December, $140,000 was transferred to the Debt Service Fund from the General Fund to pay the first Debits $140,000 Credits Cash Fund Balance Restricted principal payment on the bonds issued in the Capital Projects Fund and provide a small cash balance int debt service fund. $140,000 $140,000 $140,000 2. A special assessment tax will be levied over the next 10 fiscal years(2017-2026) to pay for the bond issue