City of Monroe- Continuous Problem

CITY OF MONROE

General Fund Balance Sheet

As of December 31, 2016

Assets

Cash

$497,000

Taxes receivable

$210,000

Less: Estimated uncollectible taxes

(37,000)

net

173,000

Interest and penalties receivable on taxes

5,200

Less: Estimated uncollectible interest and penalties

(950)

net

4,250

Due from state government

210,000

Total assets

$884,250

Liabilities, Deferred Inflows, and Fund Equity

Liabilities:

Accounts payable

$ 99,000

Due to other funds

27,000

Total liabilities

126,000

Deferred inflows Property taxes

21,000

Fund equity:

Fund balanceassigned

(for outstanding encumbrances)

$17,000

Fund balanceunassigned

720,250

Total fund balance

737,250

Total liabilities, deferred inflows and fund equity

$884,250

CITY OF MONROE

Street and Highway Fund Balance Sheet

As of December 31, 2016

Assets

Cash

$23,000

Investments

59,000

Due from state government

107,000

Total assets

$189,000

Liabilities and Fund Equity

Liabilities:

Accounts payable

$9,000

Fund equity:

Fund balanceassigned for streets and

highways

180,000

Total liabilities and fund equity

$189,000

4C. Part 2. Special Revenue Fund Transactions

Required:

a.

Record journal entries for the following transactions for FY 2017 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 $1,065,000 will be available for

street and highway maintenance during 2017 (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 $997,000 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 $1,042,000. Invoices amounting to $1,040,500 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, 2017.

d.

Prepare a Balance Sheet for the Street and Highway Fund as of December 31, 2017.

Assume any unexpended net resources are classified as Restricted Fund Balance.