Continuing Problem Additional itiopr of this problem are at the end of Chapters 5 (covering General and Special Revenue apter 6 (covering Capital Projects and Debt Service Funds), Chapter 9 (covering preparation of cial statements), and C statements) MBC hapter 10 (covering the governmental activities part of the government-wide financial Part A- Chapter 3-Scenario and General Fund budgetary journal entries T he scenario: Croton City maintains four governmental-type funds: a General Fund Fund, a Capital Projects Fund, and a Debt Service Fund. roton City started its calendar year 2019 with the following General Fund balances (all numbers are in thousands of dollars). Debits Credits $1,800 800 Property taxes receivable. Salaries payable Deferred property tax revenues.... Unassigned fund balance. Totals $700 300 1,600 $2,600 $2,600 .. Croton has adopted the following budgetary and accounting policies: Encumbrance accounting is used only for the acquisition of supplies and for the award of contracts for construction and construction-related activities. Open encumbrances lapse at the end of the year, but are considered in developing the next year's budget. a calendar year, "available" for income taxes is defined as taxes expected to be collected within 120 days after the end of the calendar year. Croton allows its employees to accumulate unused vacation days and to receive cash for up to 30 days of un used vacation leave at retireme Because final income tax returns are not required to be filed until April 15 of the year following the end of nt. Such payments are charged to the department's appropriation for salaries 3-33 Chapter 3 Budgetary Considerations in Governmental Accounting Il revenues received by the library from fines, donations, and fundraising events are credited to Revenues-miscellaneous. General Fund budgctary journal entries: Prepare journal entries to record the following budgetary transactions ap- plicable to the General Fund. Also, prepare an appropriations ledger for the Public safety supplies appropriation. (Because you will need to prepare trial balances for each of the funds for Part D of this problem, it is suggesteod that you post the opening trial balance and the journal entries to general ledger T accounts.) 1. The Croton council adopted the following General Fund budget for 2019: Revenues property taxes. .. Revenues-personal income taxes Revenues-intergovernmental Revenues-recreation fees . . . Appropriations: $9,000 5,000 . .1,000 600 . Public safety salaries Public safety supplies.. Public works salaries Parks salaries.. Transfer to Library Fund Transfer to Debt Service Fund 7,000 500 5,000 2,300 100 1,200 2. Croton's Public Safety Department placed two purchase orders against its supplies appropriation, one for $300 for firearns and one for $1.50 for uniforms. 3. The firearms were received, with an invoice for $330. The purchase order allowed shipment of 10 percent over the amount ordered, so the invoice was approved. 4. The invoice for firearms was paid. 5. The Croton Cats won the World Series. To provide more funds for crowd control at the parade, the council increased the Public safety salaries appropriation by $100. purchase orders that had been encumbered will be charged against 2020 appropriations eumor ances that Continuing Prol Part B (1) Chapter 5- Journal entries for General Fund financial transactions for Croton City Prepare journal entries, as appropriate, to record these transactions. (We suggest you post the journal entries to general ledger T-accounts.) 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 thi 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 l Statements 10-44 Continuing Problem apter 10-Preparation of journal entries for government-wide financial statements and preparation of government-wide financial statements The following additional information is furnished to complete this part of the problem 1. Croton has no activities other than governmental activities. The city's government-wide statement of net MBO position for the year ended December 31, 2018, showed general capital assets of $14,000 and related ac- umulated depreciation of $6,400 2. Depreciation expense on Croton's general capital assets for 2019 (including assets acquired in 2019) was $700, all of which was applicable to public safety 3. The city's government-wide state ment of net position for the year ended December 31, 2018, showed bonds been issued to finance capital assets. Analysis of Croton's debt service payable of $5,500. All the debt had requirements showed that $700 of the total bonds payable as of December 31, 2019, should current because it is due to be paid during 2020 4. The city's g overnment-wide statement of net position for the year ended December 31, 2018, showed crued interest payable of $120 on its outstanding long-term debt. Analysis of the city's debt service require ments showed accrued interest payable of $135 on all outstanding long-term debt as of December 31, 2019 including the debt sold by the city during 2019 5. Croton's government-wide statement of net position for the year ended December 31,2018, showed accrued vacation pay of $75. Vacation leave records showed that, as of December 31, 2019, accumulated vacation leave had increased to $87, exclusive of the $10 due to be paid to retired police officers early in 2020. (As- sume vacation leave applies only to the public safety function.) Use the preceding information to do the following Prepare journal entries needed to convert the governmental funds financial statements to the governmental activities columns of the government-wide financial statements. Review and make adjustments for journal entries made in Chapter 5 and Chapter 6 portions of this problem for revenues-property taxes; deferred property tax revenue; other financing sources-long-term debt issued; expenditures-capital outlay expenditures-bond principal; and transfers in and out. Then, record journal entries for 1 throu Post the journal entries to a six-column worksheet similar to that shown in Table 10-8 a. gh 5 above. b. Prepare Croton City's government-wide financial statements-a statement of net position and a statement of activities. Prepare Croton's financial statement reconciliations-the funds balance sheet to the government-wide statement of net position and the funds statement of revenues, expenditures, and changes in fund balances to the government-wide statement of activities Continuing Problem Additional itiopr of this problem are at the end of Chapters 5 (covering General and Special Revenue apter 6 (covering Capital Projects and Debt Service Funds), Chapter 9 (covering preparation of cial statements), and C statements) MBC hapter 10 (covering the governmental activities part of the government-wide financial Part A- Chapter 3-Scenario and General Fund budgetary journal entries T he scenario: Croton City maintains four governmental-type funds: a General Fund Fund, a Capital Projects Fund, and a Debt Service Fund. roton City started its calendar year 2019 with the following General Fund balances (all numbers are in thousands of dollars). Debits Credits $1,800 800 Property taxes receivable. Salaries payable Deferred property tax revenues.... Unassigned fund balance. Totals $700 300 1,600 $2,600 $2,600 .. Croton has adopted the following budgetary and accounting policies: Encumbrance accounting is used only for the acquisition of supplies and for the award of contracts for construction and construction-related activities. Open encumbrances lapse at the end of the year, but are considered in developing the next year's budget. a calendar year, "available" for income taxes is defined as taxes expected to be collected within 120 days after the end of the calendar year. Croton allows its employees to accumulate unused vacation days and to receive cash for up to 30 days of un used vacation leave at retireme Because final income tax returns are not required to be filed until April 15 of the year following the end of nt. Such payments are charged to the department's appropriation for salaries 3-33 Chapter 3 Budgetary Considerations in Governmental Accounting Il revenues received by the library from fines, donations, and fundraising events are credited to Revenues-miscellaneous. General Fund budgctary journal entries: Prepare journal entries to record the following budgetary transactions ap- plicable to the General Fund. Also, prepare an appropriations ledger for the Public safety supplies appropriation. (Because you will need to prepare trial balances for each of the funds for Part D of this problem, it is suggesteod that you post the opening trial balance and the journal entries to general ledger T accounts.) 1. The Croton council adopted the following General Fund budget for 2019: Revenues property taxes. .. Revenues-personal income taxes Revenues-intergovernmental Revenues-recreation fees . . . Appropriations: $9,000 5,000 . .1,000 600 . Public safety salaries Public safety supplies.. Public works salaries Parks salaries.. Transfer to Library Fund Transfer to Debt Service Fund 7,000 500 5,000 2,300 100 1,200 2. Croton's Public Safety Department placed two purchase orders against its supplies appropriation, one for $300 for firearns and one for $1.50 for uniforms. 3. The firearms were received, with an invoice for $330. The purchase order allowed shipment of 10 percent over the amount ordered, so the invoice was approved. 4. The invoice for firearms was paid. 5. The Croton Cats won the World Series. To provide more funds for crowd control at the parade, the council increased the Public safety salaries appropriation by $100. purchase orders that had been encumbered will be charged against 2020 appropriations eumor ances that Continuing Prol Part B (1) Chapter 5- Journal entries for General Fund financial transactions for Croton City Prepare journal entries, as appropriate, to record these transactions. (We suggest you post the journal entries to general ledger T-accounts.) 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 thi 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 l Statements 10-44 Continuing Problem apter 10-Preparation of journal entries for government-wide financial statements and preparation of government-wide financial statements The following additional information is furnished to complete this part of the problem 1. Croton has no activities other than governmental activities. The city's government-wide statement of net MBO position for the year ended December 31, 2018, showed general capital assets of $14,000 and related ac- umulated depreciation of $6,400 2. Depreciation expense on Croton's general capital assets for 2019 (including assets acquired in 2019) was $700, all of which was applicable to public safety 3. The city's government-wide state ment of net position for the year ended December 31, 2018, showed bonds been issued to finance capital assets. Analysis of Croton's debt service payable of $5,500. All the debt had requirements showed that $700 of the total bonds payable as of December 31, 2019, should current because it is due to be paid during 2020 4. The city's g overnment-wide statement of net position for the year ended December 31, 2018, showed crued interest payable of $120 on its outstanding long-term debt. Analysis of the city's debt service require ments showed accrued interest payable of $135 on all outstanding long-term debt as of December 31, 2019 including the debt sold by the city during 2019 5. Croton's government-wide statement of net position for the year ended December 31,2018, showed accrued vacation pay of $75. Vacation leave records showed that, as of December 31, 2019, accumulated vacation leave had increased to $87, exclusive of the $10 due to be paid to retired police officers early in 2020. (As- sume vacation leave applies only to the public safety function.) Use the preceding information to do the following Prepare journal entries needed to convert the governmental funds financial statements to the governmental activities columns of the government-wide financial statements. Review and make adjustments for journal entries made in Chapter 5 and Chapter 6 portions of this problem for revenues-property taxes; deferred property tax revenue; other financing sources-long-term debt issued; expenditures-capital outlay expenditures-bond principal; and transfers in and out. Then, record journal entries for 1 throu Post the journal entries to a six-column worksheet similar to that shown in Table 10-8 a. gh 5 above. b. Prepare Croton City's government-wide financial statements-a statement of net position and a statement of activities. Prepare Croton's financial statement reconciliations-the funds balance sheet to the government-wide statement of net position and the funds statement of revenues, expenditures, and changes in fund balances to the government-wide statement of activities