Accounting 420-001

1. Mifflin Co. ended the 2018 year with the following account balances (in $millions):

Cash 125

Supplies Inventory 10

Delinquent Ppty Tax Receivable 70

Allowance for Uncollectible Ppty Tx 5

Voucher Payable 23

Salaries Payable 15

Deferred Revenues-Ppty Taxes 40

Assigned Fund Balance 2

Fund Balance Not Spendable 10

Unassigned Fund Balance 110

• Purchases of supplies and capital outlays are subject to encumbrances. Salaries and other items are not encumbered Any open encumbrances at year-end are removed.
• Mifflin management applies the GASB 60-day rule to Sales tax and intergovernmental grants.

a- $15 due employees (Salaries Payable) is paid in cash

b-Outstanding Purchase Orders at the beginning of 2019 are reencumbered out of Assigned Fund Balance. They are for $2 Public Safety Supplies. (HINT: first recognize encumbrance. Then remove assignment of this amount of funds.

c-Delinquent Taxpayers pay $20 in 2018 taxes during the first 60 days of the year.