City of Waco

Highway Debt Service Fund

Trial Balance

December 31, 2017

Debit Credit

Cash 60,000

Investments 30,000

Restricted fund balance 90,000

Total 90,000 90,000

1. The city council of Waco adopted the budget for the Debt Service Fund for 2018. The estimated revenues totaled $1,000,000, the estimated other financing sources (a transfer from the General Fund) totaled $500,000, and the appropriations totaled $202,000.
2. The $500,000 transfer from the General Fund was recorded although it had not yet been paid to the Debt Service Fund.
3. To provide additional resources to service the bond issue, a property tax was levied upon the citizens. The total levy was $1,000,000, of which $975,000 was expected to be collected.
4. Property taxes of $780,000 were collected.
5. Property tax receivables of $5,000 were written off.
6. Income received in cash from investments totaled $5,000.
7. Property taxes of $150,000 were collected.
8. The fund liability of $50,000 for interest on bonds was recorded, and that amount of cash was transferred to the fiscal agent.
9. Investment income of $3,000 was received in cash.
10. The fund liabilities for interest on bonds in the amount of $50,000 and principal in the amount of $100,000 were recorded, and cash for the total amount was transferred to the fiscal agent.
11. The fiscal agents fee of $1,000 was accrued (credit Vouchers payable).
12. Investment revenue of $1,500 was accrued.
13. The transfer accrued in transaction 2 was collected.
14. Investments totaling $1,000,000 were purchased.

(b)

City of Waco

Debt Service Fund

Highway Bonds Fund

Trial Balance

December 31, 2018

Debits Credits

Cash $xxxxxxx

Property taxes receivable xxxxxxx

Allowance for uncollectible property taxes $xxxxxxx

Investments xxxxxxx

Income receivable on investments xxxxxxx

Vouchers payable xxxxxxx

Restricted fund balance xxxxxxx

Revenuesproperty taxes xxxxxxx

Revenuesinvestments xxxxxxx

Transfers in from General Fund xxxxxxx

Expendituresinterest xxxxxxx

Expendituresbond principal xxxxxxx

Expendituresfiscal agent fees xxxxxxx

Estimated revenues xxxxxxx

Estimated other financing sources xxxxxxx

Appropriations xxxxxxx

Budgetary fund balance ________ xxxxxxx

$xxxxxxx $xxxxxxx