Question
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
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 12,350,000 Answer 0 Answer Answer 0 Answer 8,050,000 Answer Answer 0 Answer 4,300,000 To record 2016 budget. Answer Answer 3,200,000 Answer 0 Answer Answer 0 Answer 3,200,000 To accrue taxes receivable. Answer Answer 3,200,000 Answer 0 Answer Answer 0 Answer 3,200,000 To record collection of property taxes. Answer Answer 4,300,000 Answer 0 Answer Answer 0 Answer 4,300,000 To record expenditures for waste management. Answer Answer 920,000 Answer 0 Answer Answer 0 Answer 920,000 To record expenditures for court costs. Answer Answer 4,300,000 Answer 0 Answer Answer 0 Answer 4,300,000 To record receipt of payment on 2015 waste management bills. Cash Answer 3,700,000 Answer 0 Answer Answer 320,000 Answer 0 Answer Answer 0 Answer 4,020,000 To record revenues from waste management. Answer Answer 850,000 Answer 0 Answer Answer 0 Answer 850,000 To record revenues from court fines. Answer Answer 880,000 Answer 0 Answer Answer 0 Answer 880,000 To record salaries and operating expenditures. Answer Answer 450,000 Answer 0 Answer Answer 0 Answer 450,000 To record interest revenue from investments Answer Answer 180,000 Answer 0 Answer Answer 0 Answer 180,000 To record miscellaneous expenditures. Answer Answer 250,000 Answer 0 Answer Answer 0 Answer 250,000 To record consumption of supplies inventory. Answer Answer 515,000 Answer 0 Answer Answer 0 Answer 515,000 To adjust the nonspendable fund balance. Closing entries: Tax revenues Answer 3,200,000 Answer 0 Waste management revenues Answer 4,300,000 Answer 0 Court fines Answer 950,000 Answer 0 Interest revenue Answer 400,000 Answer 0 Answer Answer 8,050,000 Answer 0 Answer Answer 0 Answer 0 To close revenues to fund balance. Answer Answer 0 Answer 0 Waste management expenditures Answer 0 Answer 4,300,000 Court expenditures Answer 0 Answer 950,000 Salaries and operating expenditures Answer 0 Answer 920,000 Miscellaneous expenditures Answer 0 Answer 0 Supplies expenditures Answer 0 Answer 0 Answer Answer 0 Answer 0 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 3,200,000 Waste management Answer 3,700,000 Court fines Answer 950,000 Interest Answer 400,000 Answer 8,250,000 Expenditures: Waste management Answer 4,300,000 Court costs Answer 950,000 Salaries and expenditures Answer 920,000 Supplies Answer 250,000 Miscellaneous Answer 180,000 Total expenditures Answer 6,600,000 Excess of revenues over (under) expenditures Answer 1,650,000 Fund balance -- January 1, 2016 Answer 0 Fund balance -- December 31, 2016 $Answer 0 City of Alexandria General Fund Balance Sheet December 31, 2016 Assets Liabilities and fund balance Cash $Answer 0 Fund balance -- nonspendable $Answer 0 Investments Answer 0 Fund balance -- unassigned Answer 0 Account receivable -- waste mgmt. Answer 0 Waste mgmt. supplies Answer 0 $Answer 0 $Answer 0 Check Feedback You have correctly selected 88. Partially correct Marks for this submission: 88.00/134.00.
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