Frisco City maintains four governmental-type funds: a General Fund, a Library Special Revenue Fund, a Capital Projects Fund, and a Debt Service Fund.

Frisco City started its calendar year 2019 with the following General Fund balances.

Debits Credits

Cash $1,800,000

Property taxes receivable $ 800,000

Salaries payable $ 700,000

Deferred property tax revenues $ 300,000

Unassigned fund balance $1,600,000

Totals $2,600,000 $2,600,000

Frisco 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 years budget.
• Because final income tax returns are not required to be filed until April 15 of the year following the end of 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.
• Frisco allows its employees to accumulate unused vacation days and to receive cash for up to 30 days of unused vacation leave at retirement. Such payments are charged to the departments appropriation for salaries.
• All revenues received by the library from fines, donations, and fundraising events are credited to Revenues-Miscellaneous.

ASSIGNMENT: Using your student template Excel spreadsheet do the following. Points will be lost if you do not follow instructions!

1. Download the spreadsheet and rename it with Your last name, Your first name, Frisco City
2. Post the opening balances in your T-accts under the General Fund tab in the spreadsheet. Please note that you do not add any T-accts to the spreadsheet.
3. Prepare the journal entries to record the following budgetary transactions applicable to the General Fund. Note in your spreadsheet, the upper left cell directs you to where you begin your journal entries. Be sure to post to your t-accounts as well!

4. Frisco City adopted the following General Fund budget for 2019.

Revenues-property taxes $9,000,000

Revenues-personal income taxes 5,000,000

Revenues-intergovernmental 1,000,000

Revenues-recreation fees 600,000

Appropriations

Public safety salaries 7,000,000

Public safety supplies 500,000

Public works salaries 5,000,000

Parks salaries 2,300,000

Transfer to Library Fund 100,000

Transfer to Debt Service Fund 1,200,000

5. Friscos Public Safety Dept. placed two purchase orders against its supplies appropriation, one for $300,000 for firearms and one for $150,000 for uniforms.

6. The firearms were received, with an invoice for $330,000. The purchase order allowed shipment of 10% over the amount ordered, so the invoice was approved.

7. The invoice for firearms was paid.

8. The Frisco Otters won the World Series. To provide more funds for crowd control at the parade, the City increased the Public Safety salaries appropriation by $100,000.