4C. Part 2. Special Revenue Fund Transactions

Required:

a. Record journal entries for the following transactions for FY 2015 and post to the general ledger. As there are relatively few revenues and expenditures, the use of control accounts is not necessary. (Make entries directly to individual revenue and expenditure accounts).

(1) The state government notified the City that $1,072,000 will be available for street and highway maintenance during 2015 (i.e. the City has met eligibility requirements). The funds are not considered reimbursement-type as defined by GASB standards.

(2) Cash in the total amount of $985,000 was received from the state government.

(3) Contracts, all eligible for payment from the Street and Highway Fund, were signed in the amount of $1,062,000.

(4) Contractual services (see transaction 3) were received; the related contracts amounted to $1,043,000. Invoices amounting to $1,030,500 for these items were approved for payment. The goods and services all were for street and highway maintenance.

(5) Investment revenue of $5,120 was earned and received.

(6) Accounts payable were paid in the amount of $923,000.

(7) All required legal steps were accomplished to increase appropriations in the amount of $4,500.

b. Prepare and post the necessary closing entries for the Street and Highway Fund.

c. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balances for the Street and Highway Fund for the fiscal year ended December 31, 2015.

d. Prepare a Balance Sheet for the Street and Highway Fund as of December 31, 2015. Assume any unexpended net resources are classified as Restricted Fund Balance.

									DUE FROM
	CASH				INVESTMENTS				STATE GOV'T
bb	23,000			bb	59,000			bb	107,000
	23,000				59,000				107,000
									TOTAL FUND BALANCE
	ACCOUNTS PAYABLE								(beginning of year)
		9,000	bb							180,000	bb
		9,000								180,000
	REVENUES				REVENUES				EXPENDITURES - STREET
	INTERGOVERNMENTAL				INVESTMENT INTEREST			& HIGHWAY MAINTENANCE
		-				-			-
BUDGETARY ACCOUNTS
									BUDGETARY
	ESTIMATED REVENUES				APPROPRIATIONS				FUND BALANCE
	-					-				-
	BUDGETARY FUND BALANCE
RESERVE FOR ENCUMBRANCES	RESERVE FOR ENCUMBRANCES								ENCUMBRANCES
		-	bb
									-
		-

Closing entries:

				BUDGETARY
Account Title	Debits	Credits		FUND BALANCE
					-	Preclosing
						closing entry
					-
				FUND BALANCE
					180,000	Preclosing
						closing entry
					180,000	ending balance
Complete the following table
	Non-spendable	Restricted	Committed	Assigned	Unassigned	Total
Fund Balance						-

Revenues

Intergovernmental Revenues

Interest on Investments

Total Revenues

$ -

Expenditures

Current:

Street & Highway Maintenance

Total Expenditures

-

Excess (Deficiency) of Revenues Over Expenditures

-

Fund Balance, January 1

Fund Balance, December 31

$ -

		Assets
Cash
Investments
Due from State Government
Total Assets			$ -
	Liabilities and Fund Equity
Liabilities
Accounts Payable
Fund Equity
Fund Balance - Restricted for
Street and Highway Maintenance
Total Liabilities and Fund Equity			$ -