Question
CITY OF SMITHVILLE Governmental Activities Government-wide Level Post-closing Trial Balance As of December 31, 2016 General Ledger Account Title Debits Credits Cash$194,660 Taxes Receivable?Delinquent258,906 Allowance
CITY OF SMITHVILLE
Governmental Activities Government-wide Level
Post-closing Trial Balance
As of December 31, 2016
General Ledger
Account TitleDebitsCredits
Cash$194,660
Taxes Receivable?Delinquent258,906
Allowance for Uncollectible Delinquent Taxes$57,800
Interest and Penalties Receivable on Taxes40,110
Allowance for Uncollectible Interest and Penalties11,726
Due from State Government165,000
Land4,180,000
Infrastructure9,862,000
Accumulated Depreciation?Infrastructure2,713,944
Buildings6,296,000
Accumulated Depreciation?Buildings1,731,000
Equipment3,556,800
Accumulated Depreciation?Equipment1,765,480
Vouchers Payable136,027
Net Position?Net Investment in Capital Assets 17,684,376
Net Position?Restricted for Public Safety15,000
Net Position?Unrestricted 438,123
Totals$24,553,476$24,553,476
General Fund Information
3.Cash was received during the year in the total amount of $3,399,599 for collections from the following receivables and cash revenues, as indicated:
Current Property Taxes$1,561,535Delinquent Property Taxes235,000
Interest and Penalties Receivable on Taxes34,270
Due from State Government165,000
Revenues: (total: $1,403,794)
Licenses and Permits601,314
Fines and Forfeits410,660
Intergovernmental160,000
Charges for Services 231,820
Total$3,399,599
Required:Record the receipt of cash and the related credits to receivables and revenues accounts, as applicable, in both the General Fund and governmental activities journals.
For purposes of the governmental activities entries at the government-wide level assume the following revenue classifications:
General FundGovernmental Activities
Licenses and PermitsProgram Revenues?General Government?
Charges for Services
Fines and ForfeitsProgram Revenues?General Government?
Charges for Services
IntergovernmentalProgram Revenues?Public Safety?Operating
Grants and Contributions
Charges for ServicesProgram Revenues?General Government?
Charges for Services, $143,850
Program Revenues?Culture and Recreation?
Charges for Services, $87,970
4.General Fund payrolls for the year totaled $2,638,220. Of that amount, $395,733 was withheld for employees' federal income taxes; $344,623 for federal payroll taxes; $98,933 for employees' state income taxes; $194,545 for retirement funds administered by the state government; and the remaining $1,604,386 was paid to employees in cash. The City of Smithville does not record encumbrances for payrolls. The payrolls were chargeable against the following functions:
General Government$518,022Public Safety1,242,447Public Works588,947Culture and Recreation 288,804
Total$2,638,220
Required:Make summary journal entries for payroll in both the General Fund and governmental activities general journals for the year.
5.Invoices for some of the goods recorded as encumbrances in transaction 2 were received and vouchered for payment, as listed below. Related encumbrances were canceled in the amounts listed below.
ExpendituresEncumbrances
General Government$94,776$94,752Public Safety175,406175,620
Public Works194,408194,512Culture and Recreation 108,187 108,150$572,777$573,034
Required:Record the receipt of these goods and the related vouchers payable in both the General Fund and governmental activities journals.At the government-wide level, you should assume the city uses the periodic inventory method.Thus, the invoiced amounts above should be recorded as expenses of the appropriate functions, except that $32,340 of the amount charged to the Public Works function was for a vehicle (debit Equipment for this item at the government-wide level).
6.During FY 2017, the City of Smithville received notification that the state government would send $115,000 at the beginning of the next fiscal year.Based on the city's definition of "available for use," the city considers the funds available for Public Safety's use in the current reporting period.The budget for the current year included this amount as "Intergovernmental Revenue."
Required:Record this transaction as a receivable and revenue in the General Fund and governmental activities journals.At the government-wide level, assume that this item is an operating grant to the Public Safety function.
7.Checks were written in the total amount of $1,721,571 during 2017.These checks were in payment of the following items:
Vouchers Payable$700,000
Due to Federal Government731,506
Due to State Government290,065
Total amount paid$1,721,571
Required:Record the payment of these items in both the General Fund and governmental activities general journals.
8.Current taxes receivable uncollected at year-end, and the related Allowance for Uncollectible Current Taxes account, were both reclassified as delinquent.
Required:Record this transaction in the General Fund and governmental activities journals.
9.Interest and penalties receivable on delinquent taxes was increased by $11,000; $3,500 of this was estimated as uncollectible.
Required:Record this transaction in the General Fund and governmental activities journals as a revenue transaction.
Please use the categories listed in the attachments.
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
