City of Smithville Project Chapter 4 Part a journal entries: (Each piece builds on the one before.)

[Para. 4-a-4] Gross General Fund payrolls for the year totaled $2,259,220. Of that amount, $472,040 was withheld for employees' federal income taxes; $166,070 for employees share of FICA taxes; $171,610 for employees state income taxes; and the balance was paid to employees in cash. The City of Smithville does not record encumbrances for payrolls. The payrolls were chargeable against the following functions appropriations:

General Government $ 476,376

Public Safety 847,402

Public Works 612,881

Culture and Recreation 322,561

Total $2,259,220

Required: Make summary journal entries for payroll in both the General Fund and governmental activities general journals for the year.

[Para. 4-a-5] The citys share of FICA taxes, $166,070, and the city's contribution of $105,380 to retirement funds administered by the state government were recorded as liabilities.

Required: Record this transaction in both the General Fund and governmental activities general journals. Assume that the total $271,450 should be allocated in the same proportions as in paragraph 4-a-4 above, rounded to nearest whole dollar:

General Government: ($476,376)/$2,259,220 x $271,450 = $57,238

Public Safety: ($847,402/$2,259,220) x $271,450 = $101,817

Public Works: ($612,881/$2,259,220) x $271,450 = $73,639

Culture and Recreation: ($322,561/$2,259,220) x $271,450 = $38,756

[Para. 4-a-6] Invoices for some of the goods recorded as encumbrances in transaction 4-a-2 were received and vouchered for payment, as listed below. Related encumbrances were canceled in the amounts listed below (Select Elimination in the drop down [Transaction Description] menu in the Detail Journal):

Expenditures Encumbrances

General Government $ 93,838 $ 94,752

Public Works 241,996 242,512

Culture and Recreation 109,280 108,927

Public Safety 173,669 173,357

$618,783 $619,548

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 $27,800 of the amount charged to the Public Works function was for a vehicle (debit Equipment for this item at the government-wide level).

[Para. 4-a-7] During FY 2014, the City of Smithville received notification that the state government would remit $165,000 to it early in the next fiscal year, although this amount is intended to finance certain public safety operations of the current year. This amount had been anticipated and was included in the budget for the current year as "Intergovernmental Revenue, and may be used in the current fiscal year.

Required: Record this transaction as a receivable and revenue in the General Fund and governmental activities journals. (Note: Select Accrued Revenue in the [Transaction Description] box in the Detail Journal). At the government-wide level, assume that this item is an operating grant to the Public Safety function.

[Para. 4-a-8] Checks were written in the total amount of $2,252,670 during 2014. These checks were in payment of the following items:

Vouchers Payable $ 995,600

Due to Federal Government 952,780

Due to State Government 304,290

Total amount paid 2,252,670

Required: Record the payment of these items in both the General Fund and governmental activities general journals.

[Para. 4-a-9] Current taxes receivable uncollected at year-end, and the related Estimated Uncollectible Current Taxes account, were both reclassified as delinquent.

Required: Record this transaction in the General Fund and governmental activities journals.

[Para. 4-a-10] 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.

Thank you!