Question
accounts for its revenues and day-to-day operating expenditures in its General Fund. The Town uses encumbrance accounting to keep budgetary control over the appropriation for
accounts for its revenues and day-to-day operating expenditures in its General Fund. The Town uses encumbrance accounting to keep budgetary control over the appropriation for "other expenditures." Prepare journal entries to record these transactions in the General Fund for the calendar year 2019.
h. The Town repays the $100,000 borrowed in c., above.
i. The voucher in f., above, is paid.
j. The Town receives $80,000 for sales taxes collected by the state on behalf of the Town.
k. S. Sparrow, a long-time resident, is unable to pay his $3,000 property tax bill in full. He pays $1,000, and the Town writes off the remaining $2,000 as uncollectible.
l. The Town declares all remaining unpaid property taxes to be delinquent. It also notifies delinquent property owners that they owe penalties of $2,000 on the delinquent taxes.
m. The General Fund receives a bill from the Water Utility Fund for $6,000.
n. The Town pays personal services in the amount of $253,000.
o. The Town is notified by the state that it collected an additional $3,000 in December 2019 sales taxes that it will remit to the Town on January 20, 2020. The Town considers sales taxes collected within 60 days of its fiscal year-end available.
p. The Town files a tax lien against one of the delinquent taxpayers (in l. above). The taxpayer is past due on $4,000 of property taxes and owes penalties and interest of $400 on delinquent taxes.
q. The city sold the property (in p.) at auction for $6,000. The auctioneer charged $300 for his services, which has not yet been paid.
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