Additional Information:

1. Encumbrances lapse if they are outstanding at the close of a fiscal year; however, the city honors all outstanding encumbrances, reported at the end of 2016 are reported as Fund Balance - Assigned.

2. The city uses the purchases method to record the acquisition of supplies. The year-end supplies inventory is considered to be material and is reported in the citys financial statements.

Additional Information:

1. Rapid City sold bonds in the amount of $5,400,000 in December 2016 to finance a new city park.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 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.

Additional Information:

1. In December, $140,000 was transferred to the Debt Service Fund from the General Fund to pay the first principal payment on the bonds issued in the Capital Projects Fund and provide a small cash balance in the debt service fund.

2. A special assessment tax will be levied over the next 10 fiscal years (2017-2026) to pay for the bond issue.

Please prepare the journal entries and financial statements as governmental fund activities (i.e., fund accounting). Do not prepare or include government-wide activities (i.e., governmental activities).

Requirement Please finish 21-30 journal entries!

The city levied the special tax assessment to service the bond issue for the new city park. The city levied $460,000 in anticipation of realizing net cash of $437,000, establishing a $23,000 allowance for uncollectible taxes and discounts.

11. Purchase orders for supplies were placed in the amount of $(123,000 + 10,000).

12. The city entered into two construction contracts for the new city park: (a) Hillside Construction Co. for $4,825,000 and (b) Palmer Engineering for $675,000.

13. The city collected 95% of the property taxes levied in 2017. Taxpayers deducted $(1% of levied property taxes JE #9) in discounts for early payment of bills.

14. The city repaid the tax anticipation loan, plus interest, to the bank.

15. The city approved encumbrances of $685,000 for Other program costs.

16. The General Fund transferred the $135,000 to the Debt Service Fund for principle payment on the Capital Project Fund bonds.

17. The city collected $410,000 of the special assessment tax bills, after taxpayers deducted $3,200 in discounts for early payment.

18. All remaining unpaid special assessment taxes were declared delinquent. The city comptroller concluded that a 1% allowance for uncollectible taxes is necessary for the delinquent special assessment taxes.

19. The city paid 65% of the budgeted amount to operate the food inspection program.

20. The city received $500,000 of the federal grant for the construction of the new city park. Based on the provisions of the grant, the city recognized the amount received as revenue. The grant stipulated that the park must be completed by the end of the fiscal year in order to receive the remaining $50,000 pledged to the project.

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

22. The CD in the Capital Projects Fund matured and the city received the principle and interest from the CD.

23. The city vouchered $675,000 related to the encumbered Other Program Costs. (Journal entry #15)

24. During 2017, the city collected 97% of the budgeted amount of sales taxes.

25. 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.

26. The city billed 80% of the budgeted amount of licensing fees and fines (through violation notices). There is no uncollectible allowance account for licensing fees and fines receivable.

27. The city received and vouchered invoices totaling 85% of the amount in journal entry #11 for payment. The amount encumbrances related to these invoices total 90% of the amount in journal entry #11 related to Supplies Other Programs.

28. The city canceled encumbrances totaling 3.5% of the amount in journal entry #11 related to Supplies Other Programs.

29. The city paid the vouchered construction contracts (journal entry #25), less 5% retainage.

30. The city ordered park equipment in the amount of $700,000 for the new city park.

Rapid City General Fund Postclosing Trial Balance December 31, 2016 Debits Credits Cash Property Taxes Receivable - Deliquent Allowance for Uncollectible Delinguent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest & Penalties Supplies Inventory Vouchers Payable Due to Federal Government Fund Balance Nonspendable - Supplies Inventory Fund Balance - Assigned Fund Balance - Unassianed $ 295,600 57,000 4,200 7,700 $ 3,500 200 36,400 2,800 7,700 3,300 310,600 S364500 $ 364,500 Rapid City General Fund Postclosing Trial Balance December 31, 2016 Debits Credits Cash Property Taxes Receivable - Deliquent Allowance for Uncollectible Delinguent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest & Penalties Supplies Inventory Vouchers Payable Due to Federal Government Fund Balance Nonspendable - Supplies Inventory Fund Balance - Assigned Fund Balance - Unassianed $ 295,600 57,000 4,200 7,700 $ 3,500 200 36,400 2,800 7,700 3,300 310,600 S364500 $ 364,500