General Fund Entries and Financial Statements

The City of Alexandria, VA finances its operations from revenues collected from property taxes, waste management fees, municipal court fines, and interest on investments. Alexandria maintains only a general fund. Suppose the following information is available for the year ended December 31, 2016:

1. Following is the general fund trial balance on January 1, 2016:

	Dr (Cr)
Investments	$5,000,000
Cash	2,500,000
Waste management supplies	515,000
Accounts receivable-waste management	550,000
Fund balance-nonspendable	(515,000)
Fund balance-unassigned	(8,050,000)
Total	$0

2. The budget for 2016, adopted by the town board, follows:

Property taxes	$3,200,000
Waste management costs	4,300,000
Court costs	950,000
Waste management revenues	3,700,000
Court fines	800,000
Salaries and operating expenditures	920,000
Investment income	400,000
Supplies expenditures	250,000
Miscellaneous expenditures	180,000

3. All property taxes were collected in cash. Waste management costs, all paid in cash, were $4,290,000. Court costs, all paid in cash, were $920,000. 4. Waste management revenues of $2,800,000 were billed during the year. All outstanding waste management bills on January 1, 2016, were collected during 2016. All 2016 billings were paid with the exception of $320,000 which were mailed to customers the last week of the year. 5. Court fines of $850,000 were collected in cash. Salaries and operating expenditures, all paid in cash, were $880,000. Investment income of $450,000 accumulates in the investments account until the investments mature. No investments matured in 2016. 6. Miscellaneous expenditures, all paid in cash, were $160,000. 7. Waste management supplies on hand at year-end were $265,000. The town uses the consumption method to report supplies.

Required

a. Prepare 2016 journal entries to record the above events and to close the books for the year.

General Fund Journal
Description	Debit	Credit
Estimated revenues	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record 2016 budget.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To accrue taxes receivable.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record collection of property taxes.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record expenditures for waste management.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record expenditures for court costs.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record receipt of payment on 2015 waste management bills.
Cash	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record revenues from waste management.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record revenues from court fines.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record salaries and operating expenditures.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record interest revenue from investments
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record miscellaneous expenditures.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To record consumption of supplies inventory.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To adjust the nonspendable fund balance.
Closing entries:
Tax revenues	Answer	Answer
Waste management revenues	Answer	Answer
Court fines	Answer	Answer
Interest revenue	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To close revenues to fund balance.
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
Waste management expenditures	Answer	Answer
Court expenditures	Answer	Answer
Salaries and operating expenditures	Answer	Answer
Miscellaneous expenditures	Answer	Answer
Supplies expenditures	Answer	Answer
AnswerEstimated revenuesFund balance -- unassignedAppropriationsTaxes receivableTax revenuesCashWaste management expendituresCourt expendituresAccounts receivable -- waste managementWaste management revenuesCourt finesSalaries and operating expendituresInvestmentsInterest revenueMiscellaneous expendituresSupplies expendituresWaste management suppliesFund balance -- nonspendable	Answer	Answer
To close expenditures to fund balance.

b. Prepare a statement of revenues, expenditures, and changes in fund balances and the balance sheet for 2016.

Use a negative sign with your answer for excess of revenues over (under) expenditures, if "under" applies.

City of Alexandria General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended December 31, 2016
Revenues:
Property taxes	$Answer
Waste management	Answer
Court fines	Answer
Interest	Answer
	Answer
Expenditures:
Waste management	Answer
Court costs	Answer
Salaries and expenditures	Answer
Supplies	Answer
Miscellaneous	Answer
Total expenditures	Answer
Excess of revenues over (under) expenditures	Answer
Fund balance -- January 1, 2016	Answer
Fund balance -- December 31, 2016	$Answer

City of Alexandria General Fund Balance Sheet December 31, 2016
Assets		Liabilities and fund balance
Cash	$Answer	Fund balance -- nonspendable	$Answer
Investments	Answer	Fund balance -- unassigned	Answer
Account receivable -- waste mgmt.	Answer
Waste mgmt. supplies	Answer
	$Answer		$Answer