46-51

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)

46. The remaining project funds in the Capital Project Fund were transferred to the Debt Service Fund.

47. The Debt Service Fund paid the second installment payment plus interest on the bonds issued for the new city park.

48. The physical supplies inventory count at year-end totaled 3% of the budgeted amount for Supplies Other Programs. Encumbrances of $8,000 related to supplies ordered but not received by year end remain open. The purchase orders will be honored against 2018s appropriation.

49. The city determined vacation leave pay earned during the year is 2% of budgeted Salaries. The city vouchered and paid 85%.

50. Of the remaining 15% vacation leave earned, 10% is expected to be paid with expendable available financial resources in 2018. The 10% means 10% of the 15%, not 10% of total vacation pay earned.

51. When you complete all of the encumbrance journal entries and post them to the T-accounts, you will find a few encumbrance/encumbrance outstanding accounts still have balances. You can "close" these accounts into the Fund Balance as an adjusting entry. (Hint: What do these encumbrances represent? How do they affect Fund Balance? Closing the encumbrances to the Fund Balance results in a transfer of funds from what to what?)

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