E4-24 Operating Transactions, Special Topics, and Financial Statements [LO 4-1, 4-2, 4-3]

The City of Hintons General Fund had the following post-closing trial balance at April 30, 2016, the end of its fiscal year:

	Debits				Credits
Cash	$	110,000
Taxes ReceivableDelinquent		596,000
Allowance for Uncollectible Delinquent Taxes					$	202,000
Interest and Penalties Receivable		27,580
Allowance for Uncollectible Interest and Penalties						12,460
Inventory of Supplies		17,400
Vouchers Payable						161,500
Due to Federal Government						72,490
Fund Balance NonspendableInventory of Supplies						17,400
Fund BalanceUnassigned						285,130
	$	750,980			$	750,980

a.

Record the effect of the following transactions on the General Fund and governmental activities for the year ended April 30, 2017. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. The budget for FY 2017 provided for General Fund estimated revenues totaling $3,400,000 and appropriations totaling $3,347,000.

2. The city council authorized temporary borrowing of $630,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and ExpensesGeneral Government in the governmental activities journal).

3. The property tax levy for FY 2017 was recorded. Net assessed valuation of taxable property for the year was $48,500,000, and the tax rate was $5 per $100. It was estimated that 4 percent of the levy would be uncollectible.

4. Purchase orders and contracts were issued to vendors and others in the amount of $2,190,000.

5. The County Board of Review discovered unassessed properties with a total taxable value of $630,000. The owners of these properties were charged with taxes at the citys General Fund rate of $5 per $100 assessed value. (You need not adjust the Allowance for Uncollectible Current Taxes account.)

6. $2,195,000 of current taxes, $396,270 of delinquent taxes, and $21,870 of interest and penalties were collected.

7. Additional interest and penalties on delinquent taxes were accrued in the amount of $39,730, of which 20 percent was estimated to be uncollectible.

8. Because of a change in state law, the city was notified that it will receive $106,000 less in intergovernmental revenues than was budgeted.

9. Total payroll during the year was $949,490. Of that amount, $75,690 was withheld for employees FICA tax liability, $116,710 for employees federal income tax liability, and $35,700 for state taxes; the balance was paid to employees in cash.

10. The employers FICA tax liability was recorded for $75,690.

11. Revenues from sources other than taxes were collected in the amount of $960,000.

12. Amounts due to the federal government as of April 30, 2017, and amounts due for FICA taxes, and state and federal withholding taxes during the year were vouchered.

13. Purchase orders and contracts encumbered in the amount of $2,118,040 were filled at a net cost of $2,117,570, which was vouchered.

13a. General fund: Record the encumbrances outstanding for 2017. Record the total expenditures against vouchers payable for 2017.

13b. Government fund: Record the total expenses against vouchers payable for 2017.

14. Vouchers payable totaling $2,431,660 were paid after deducting a credit for purchases discount of $9,330 (credit Expenditures in the General Fund).

15. The tax anticipation note of $630,000 was repaid.

16. All unpaid current years property taxes became delinquent. The balances of the current tax receivables and related uncollectibles were transferred to delinquent

16a. General: Record the delinquent amount of unpaid property taxes.

16b. Record the adjustment for the delinquent amount of tax against the allowance.

16c. Government: Record the delinquent amount of unpaid property taxes.

16d. Record the adjustment for the delinquent amount of tax against the allowance.

17. A physical inventory of materials and supplies at April 30, 2017, showed a total of $21,700. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Expenses were debited in the governmental activities journal.)

b.	Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
c.	Prepare a General Fund balance sheet as of April 30, 2017.
d.	Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended April 30, 2017. Do not prepare the government-wide financial statements.