Question
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
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
- 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.
- The $500,000 transfer from the General Fund was recorded although it had not yet been paid to the Debt Service Fund.
- 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.
- Property taxes of $780,000 were collected.
- Property tax receivables of $5,000 were written off.
- Income received in cash from investments totaled $5,000.
- Property taxes of $150,000 were collected.
- The fund liability of $50,000 for interest on bonds was recorded, and that amount of cash was transferred to the fiscal agent.
- Investment income of $3,000 was received in cash.
- 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.
- The fiscal agents fee of $1,000 was accrued (credit Vouchers payable).
- Investment revenue of $1,500 was accrued.
- The transfer accrued in transaction 2 was collected.
- 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
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