Exercise 4-27 (Static) Operating Transactions and Financial Statements [LO 4-1, 4-2, 4-3] The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2022, the end of its fiscal year Debits Credits Cash $265, 120 Sales Taxes Receivable 11,000 Taxes Receivable-Delinquent 183,000 Allowance for Uncollectible Delinquent Taxes $ 21,960 Interest and Penalties Receivable 6,280 Allowance for Uncollectible Interest and Penalties Inventory of Supplies 6,100 Vouchers Payable 48,500 Due to Federal Government 29, 490 Deferred Inflows of Resources-unavailable Revenues 166, 160 Fund Balance-Nonspendable-Inventory of Supplies 6,100 Fund Balance unassigned 198, 130 $471,500 $471,500 1,160 a Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2023, b. Record in general Journal form entries to close the budgetary and operating statement accounts in the General Fund only c. Prepare a General Fund balance sheet as of June 30, 2023 d. Prepare a General Fund statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2023, Transaction Fund Governmental General Journal Activities Debit Credit 1. The budget for FY 2023 provided for General Fund estimated revenues totaling $3.140,000, appropriations totaling $3,000,000, and another financing use-intertund transfer out of $100,000 1 General Fund Estimated Revenues Appropriations Budgetary Fund Balance 2. The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note obtained from a local bank General Fund and Cash Governmental Activities Expenditures 3. The property tax levy for FY 2023 was recorded. Net assessed Valuation of taxable property for the year was $43,000,000, and the tax rate was 55 per $100. It was estimated that 3 percent of the levy would be uncollectible 3 General Fund Governmental Activities 14 Purchase orders and contracts were issued to vendors and others in the amount of $2,060,000 4 General Fund Governmental Activities 5. 51,961,000 of current taxes, 5103,270 of delinquent taxes, $3,570 of interest and penalties, and $11,000 of accrued sales taxes were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. Record the $1,961,000 of current taxes, $103,270 of delinquent taxes, and $3,570 of interest and penalties collected 5a General Fund 50 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end 50 Governmental Activities Record the $1.961,000 of current taxes, $103,270 of delinquent taxes, and $3,570 of interest and penalties collected 5d Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end Additional interest and penalties on delinquent taxes were accrued in the amount of $3,430, of which 30 percent was estimated to be uncollectible 6 General Fund Governmental Activities 7. Because of a change in state law, the city was notified that it will receive $80,000 less in intergovernmental revenues than was budgeted. 7 General Fund Governmental Activities 8. Delinquent taxes of $12.792 were deemed uncollectible and written off. The associated interest and penalties of $952 also were written off 8 General Fund 8. Delinquent taxes of $12,792 were deemed uncollectible and written off. The associated interest and penalties of $952 also were written off. General Fund 8 Governmental Activities 9. Total payroll during the year was $819,490. Of that amount, $62,690 was withheld for employees' FICA tax liability, $103,710 for employees' federal income tax liability, and $34,400 for state taxes, the balance was paid to employees in cash 9 General Fund Governmental Activities 10. The employer's FICA tax liability was recorded for $62,690. 10 General Fund Governmental Activities 11. Cash collections from sales taxes totaled $825.000 and from revenue sources other than taxes were $110,000. In addition, sales taxes receivable due July 1 were accrued in the amount of $12,000. 11 General Fund Governmental Activities 12. Amounts due to the federal government as of June 30, 2023, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered 12 General Fund Governmental Activities 13. Purchase orders and contracts encumbered in the amount of $1,988,040 were filled at a net cost of $1,887,570, which was vouchered. 13a General Fund Record the reversal of encumbrances entry of 2023. 13b Record the receipt of vouchers for the purchase orders and contracts encumbered for 2023. 136 Governmental Activities Record the receipt of vouchers for the purchase orders and contracts encumbered for 2023 14. Vouchers payable totaling $2,101,660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures) General Fund 14 Governmental Activities 15. The tax anticipation note of $500,000 was repaid. Interest totaled $10,000 15 General Fund 15. The tax anticipation note of $500,000 was repaid. Interest totaled $10,000. 15 General Fund Governmental Activities 16. A transfer of $100,000 was made to establish a special revenue fund to account for expenditures related to a federal grant 16 General Fund Govermental Activities 17. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivable and related uncollectibles were transferred to delinquent accounts, The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year, 17a General Fund Record the reclassification of the unpaid property taxes of current year 17b Record the reclassification of the related allowance for estimated uncollectible property taxes of current year, 17c Record the reclassification of the property tax revenue of current year. 170 Governmental Activities Record the reclassification of the unpaid property taxes of current year 17e Record the reclassification of the related allowance for estimated uncollectible property taxes of current year. 174 Record the reclassification of the property tax revenue of current year 18. A physical inventory of materials and supplies at June 30, 2023, showed a total of 59,100. 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 Rund Journal and Inventory of Supplies was debited in the governmental activities journal) 18 General Fund Governmental Activities Required A Required B Required Required D Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. (If required for a transaction/event, select "No Journal Entry Required" in the first account field.) General Journal Debit Credit Transactions Fund 1. Record the closure of budgetary statements account 1 General Fund 2. Record the closure of operating statements account 2 General Fund Prepare a General Fund balance sheet as of June 30, 2023. 0 ht 0 CITY OF CASTLETON General Fund Balance Sheet As of June 30, 2023 Assets Cash Sales Taxes Receivable Taxes Receivable--Delinquent Less: Allowance for Uncollectible Taxes--Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities and Fund Balances Liabilities: Vouchers Payable Deferred Inflows of Resources--Unavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances Nonspendable-Inventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances nces 0 0 0 $ 0 Prepare a General Fund statement of revenues, expenditures, and changes in fund balance for the year endea CITY OF CASTLETON General Fund tes Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2023 Revenues Taxes Interest and Penalties on Taxes Other Sources Total Revenues 0 Expenditures Salaries and Wages Interest on Notes Payable Other Total Expenditures Excess of Revenues over Expenditures Other Financing Uses Change in Fund Balance 0 increase in Inventory of Supplies Fund Balances, July 1, 2022 Fund Balances, June 30, 2023 0