Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gilbert City had the following transactions involving resource inflows into its general fund for the year ended June 3 0 , 2 0 X 8

Gilbert City had the following transactions involving resource inflows into its general fund for the year ended June 30,20X8:
The general fund levied $2,300,000 of property taxes in July 20X7. The city estimated that 2 percent of the levy would be uncollectible and that $140,000 of the levy would not be collected until after August 31,20X8.
On April 1,20X8, the general fund received $55,000 repayment of an advance made to the internal service fund. Interest on the advance of $1,650 also was received.
During the year ended June 30,20X8, the general fund received $2,100,000 of the property taxes levied in transaction (1).
The general fund received $260,000 in grant monies from the state to be used solely to acquire computer equipment. During March 20X8, the general fund acquired computer equipment using $232,000 of the grant. The city has not yet determined the use of the remainder of the grant.
During the year ended June 30,20X8, the general fund received $140,000 from the state as its portion of the sales tax. At June 30,20X8, the state owed the general fund an additional $28,000 of sales taxes. The general fund does not expect to have the $28,000 available until early August 20X8.
In July 20X7, the general fund borrowed $880,000 from a local bank using the property tax levy as collateral. The loan was repaid in September 20X7 with the proceeds from property tax collections.
In February 20X8, a terminated debt service fund transferred $30,000 to the general fund. The $30,000 represented excess resources left in the debt service fund after a general long-term debt obligation had been paid in full.
On July 1,20X7, the general fund estimated that it would receive $78,000 from the sale of liquor licenses during the fiscal year ended June 30,20X8. For the year ended June 30,20X8, $63,000 had been received from liquor license sales.
The general fund received $16,000 in October 20X7 from one of the citys special revenue funds. The amount received represented a reimbursement for an expenditure of the special revenue fund that the citys general fund paid.
In July 20X7, the general fund collected $89,000 of delinquent property taxes that had been classified as delinquent on June 30,20X7. In the entry to record the property tax levy in July 20X6, the general fund estimated that it would collect all property tax revenues by July 31,20X7.
Required:
Prepare a schedule showing the amount of revenue that should be reported by Gilbert City's general fund on the statement of
revenues, expenditures, and changes in fund balance for the year ended June 30,20X8.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Book Marketing Audit

Authors: Kilby Blades

1st Edition

0985798335, 978-0985798338

More Books

Students also viewed these Accounting questions