Continuing Probl Part B (1)- Chapter 5 Journal entries for General Fund financial transactions for Croton City Prepare jounal entries, as appropriate, to record these transactions. (We suggest you post the journal entries to seneral ledger Taccounts ) Note: The Croton City continuing problem is introduced in Chapter 3 on page 3-32. You should review the scenario in Chapter 3 before preparing the journal entries for the General Fund in this chapter 1. Of the $800 in property taxes receivable at January 1, $780 was collected in cash. The remaining $20 was written off as uncollectible. Deferred property taxes at the beginning of the year were recognized as revenue ($300). 2. Accrued salaries from the previous year ($700) were paid. 3. Property taxes in the amount of $9,030 were levied in order to provide revenues of $9,000. Tax bills were sent to the property owners. An allowance for uncollectible taxes was established. 4. During the year, property taxes of $8,100 were collected in cash. 5. The state collects personal income taxes on behalf of the city. During the year, Croton received personal income taxes of $4,600 from the state. 6. The Parks Department collected $700 in recreation fees during the year 7. Croton paid salaries of $13,600, charging the salary appropriations as follows Public safety $6,700 Public works 4,700 Parks 2.200 5-53 Auto zoom 6-53 Chapter 5 General and Special Revenue Funds (Continued) 8. The state sent the city a check for $1,000 to finance a special public safety program, stipulating that the resources could be used at any time during 2019 or 2020. The $6,700 in public safety salaries paid in the previous transaction includes $800 of salaries for this program, so $200 remains available for spending on the program in 2020. 9. Unpaid salaries at year-end (to be paid during the first week of 2020) were as follows: Public safety $350 Public works 250 Parks 100 10. At year end, the uncollected property taxes were declared delinquent. The existing allowance for uncollect- ible taxes is reclassified to delinquent. Croton's director of finance estimated that $500 of the uncollected taxes would be collected in January and February 2020 and $400 would be collected during the rest of 2020. I1. In January 2020, the state advised Croton that the state held $500 in personal income taxes on the city's behalf and that it would send the taxes to Croton by February 10. It also told Croton that it was likely that, by April 30, Croton would receive an additional $200 of taxes with final returns, but that tax refunds would probably be $300. (Remember that "available for income taxes is defined as taxes expected to be collected within 120 days after the end of the calendar year.) 12. Police officers who retired at the end of 2019 will be paid S10 for unused vacation pay on January 6, 2020. Part B (2)-Chapter 5-Journal entries for Special Revenue Fund transactions The Library Special Revenue Fund commenced calendar year 2019 with a cash balance of $5, no liabilities, and a restricted fund balance of S5. Prepare journal entries to record these transactions in the Library Special Revenue Fund and, where appropriate, in the General Fund. (We suggest you post opening balances and the joumal entries to general ledger T-accounts.) The General Fund transferred S100 cash to the Library Special Revenue Fund to help the library finance its activities for the year The library received a grant of $300 from the county. The grant must be used only for library purposes, but there is no requirement as to when it must be spent I. 2. 3. The library received $20 from fines, donations, and various fundraising events. 4. The library paid $350 for salaries and $40 to acquire books and periodicals. Charge the Expenditures-cul- ture salaries and Expenditures-culture supplies accounts, respectively Solutions to Chapter 5 In-Chapter Review Questions