HARVEY CITY CHAPTER 4 REQUIREMENTS a Enter the beginning (January 1, 20X4) trial balance of the General Fund of Harvey City in a General Fund worksheet. (A different solution approach may be used if desired by your profes- sor.) The worksheet (which is similar to Illustration 4-13) may be set up as follows: 1. The first column should be used for account titles 2. Columns 2 and 3 should be the debit and credit columns, respectively, for the beginning trial balance of the General Fund 3. Column 4 of the worksheet should be a reference column to tie the journal entry debits to the transaction number in this problem. 11 SE C04indd 167 1 /17 2:52 68 CHAPTER 4 The General Fund and Special Revenue Funds 4. Columns 5 and 6 are the debit and credit columns in which the 20X4 transactions and events of the Harvey City General Fund are to be recorded. Add rows as necessary to provide sufficient 5. Column 7 of the worksheet should be a reference column to tie the journal entry credits to the 6. Columns 8 and 9 are for the preclosing trial balance of the Harvey City General Fund. They 7. Columns 10 and 11 are to be used to close the nonbudgetary accounts of Harvey City. These room for all transactions. (The solution template should have the proper number of rows.) transaction number in this problem will be used in Chapter 6 columns also will contain all balances that are to be reported in the General Fund statement of revenues, expenditures, and changes in fund balances. 8. Columns 12 and 13 are to be used for the postclosing trial balance (balance sheet data). All asset, deferred outflow, liability,deferred inflow, and fund balance amounts should be entered here from the trial balance columns. 9. The differences between the closing entry columns and the balance sheet columns should be equal to each other and to the net change in fund balances of the General Fund. This amount should be entered in the smaller of the closing entry columns and the smaller of the balance sheet columns. If the closing entry debit column is smaller, the balance sheet credit column should be smaller-and vice versa.) b. Enter the effects of the following transactions and events in the appropriate columns of the worksheet. (Again, a different solution approach may be used if desired by your professor.) HARVEY CITY GENERAL FUND TRIAL BALANCE The trial balance of the General Fund of Harvey City at January 1, 20X4, was: Harvey City General Fund Trial Balance January 1, 20X4 Debit Credit Cash 480,000 160,000 54,500 2,000 20,000 Allowance for Uncollectible Interest and Penalties. .. . . .. . . 17,500 53,000 50,000 112,000 100,000 8,000 1,442,000 1,749,500 1.749500 $1.749500 HARVEY CITY GENERAL FUND BUDGET The General Fund budget for 20X4 was adopted by the city council. The city budgets on the modified accrual basis. Transfers are not budgeted. The adopted budget is presented here Estimated Revenues: 15,500 122,000 50,000 300,000 45,000 $2,032,500 E9569 11 SE 004indd 168 Case Study 169 Appropriations: eneral government Public safety Highways and streets Health and sanitation Parks and recreation Total appropriations Budgeted excess of revenues over appropriations 260,000 868,000 290,000 215,000 330,000 1,963,000 69,500 HARVEY CITY GENERAL FUND TRANSACTIONS-20X4 1. Record the budget. (You may use a single Estimated Revenues account and a single 2. Reestablish the encumbrances of $19,000 that were closed at the end of last year Appropriations account.) 3. The city levied its general property taxes for the year of $1,580,000. The city estimates that $30,000 of the taxes will prove uncollectible. Record the taxes assuming the city will collect the remaining balance later during the fiscal year 4. The city collected $1,300,000 of property taxes before the due date for taxes. The remainder of the taxes receivable became delinquent 5. The city received and vouchered the materials and supplies that were on order from the previous year. The actual cost equaled the estimated cost of these materials and supplies, $19,000. The city records expenditures for materials and supplies when they are consumed. A perpetual inventory system is used. 6. The city collected $200,000 when investments matured and also collected the following eneral Fund revenues during the year: Fines and forfeitures Unrestricted grants from the state Licenses and permits Interest revenue from investments (including $2,000 accrued at the $48.480 346,200 122.460 end of 20X3) Total 42,000 559,140 7. The city incurred and paid salary expenditures as follows: Accrued salaries payable, January 1 General government Public safety Highways and streets Health and sanitation Parks and recreation $50,000 180,000 580,000 175,000 150,000 220,000 1,355,000 Total 8. The city ordered General Fund materials and supplies as follows General government Public safety Highways and streets Health and sanitation Parks and recreation 10,000 40,000 75,000 40,000 30,000 $ 195,000 Total 9. Billings were received from the Water and Sewer Enterprise Fund as follows: General government Public safety Highways and streets Health and sanitation Parks and recreation $ 900 13,500 3,300 2,900 1900 $ 22,500 Total MO4 FREE956911 SE_004indd 169 1 /17 2:52 PM 170 CHAPTER 4 The General Fund and Special Revenue Funds 10. Equipment was ordered for the following functions: 150,000 25,300 8,900 60,000 279,200 11. The equipment ordered was received (and vouchers approved) as follows: Estimated Cos Actual Cost 35,000 135,000 25.300 8,900 60,000 264,200 25.300 8,900 60,000 12. Billings were received from the Central Communications Network Internal Service Fund for communications services used by general government agencies and departments as follows: 18,000 15,000 3,500 6,630 13,940 57070 13. A total of $61,000 was paid on the amounts owed to the Central Communications Network Internal Service Fund 14. Other unencumbered expenditures incurred during the year were vouchered as follows 11,420 41,280 52,700 15. The General Fund loaned $500,000 to the Addiction Prevention Special Revenue Fund to provide working capital for that fund. The loan is to be repaid within a year 16. The General Fund transferred resources to other funds as follows: $60,000 200,000 70,000 729,965 Addiction Prevention Special Revenue Fund . . . .. . . . . . . . . . . . . . . . .. Parks and Recreation Capital Projects Fund.. . . . .. . . . . .. .. . 17. The General Fund received a transfer of $100,000 from the Water and Sewer Enterprise Fund 18. Accrued salaries and wages for General Fund employees at December 31 were as follows: 5,800 1,750 1,500 2,200 13.050 HARVEY CITY CHAPTER 4 REQUIREMENTS a Enter the beginning (January 1, 20X4) trial balance of the General Fund of Harvey City in a General Fund worksheet. (A different solution approach may be used if desired by your profes- sor.) The worksheet (which is similar to Illustration 4-13) may be set up as follows: 1. The first column should be used for account titles 2. Columns 2 and 3 should be the debit and credit columns, respectively, for the beginning trial balance of the General Fund 3. Column 4 of the worksheet should be a reference column to tie the journal entry debits to the transaction number in this problem. 11 SE C04indd 167 1 /17 2:52 68 CHAPTER 4 The General Fund and Special Revenue Funds 4. Columns 5 and 6 are the debit and credit columns in which the 20X4 transactions and events of the Harvey City General Fund are to be recorded. Add rows as necessary to provide sufficient 5. Column 7 of the worksheet should be a reference column to tie the journal entry credits to the 6. Columns 8 and 9 are for the preclosing trial balance of the Harvey City General Fund. They 7. Columns 10 and 11 are to be used to close the nonbudgetary accounts of Harvey City. These room for all transactions. (The solution template should have the proper number of rows.) transaction number in this problem will be used in Chapter 6 columns also will contain all balances that are to be reported in the General Fund statement of revenues, expenditures, and changes in fund balances. 8. Columns 12 and 13 are to be used for the postclosing trial balance (balance sheet data). All asset, deferred outflow, liability,deferred inflow, and fund balance amounts should be entered here from the trial balance columns. 9. The differences between the closing entry columns and the balance sheet columns should be equal to each other and to the net change in fund balances of the General Fund. This amount should be entered in the smaller of the closing entry columns and the smaller of the balance sheet columns. If the closing entry debit column is smaller, the balance sheet credit column should be smaller-and vice versa.) b. Enter the effects of the following transactions and events in the appropriate columns of the worksheet. (Again, a different solution approach may be used if desired by your professor.) HARVEY CITY GENERAL FUND TRIAL BALANCE The trial balance of the General Fund of Harvey City at January 1, 20X4, was: Harvey City General Fund Trial Balance January 1, 20X4 Debit Credit Cash 480,000 160,000 54,500 2,000 20,000 Allowance for Uncollectible Interest and Penalties. .. . . .. . . 17,500 53,000 50,000 112,000 100,000 8,000 1,442,000 1,749,500 1.749500 $1.749500 HARVEY CITY GENERAL FUND BUDGET The General Fund budget for 20X4 was adopted by the city council. The city budgets on the modified accrual basis. Transfers are not budgeted. The adopted budget is presented here Estimated Revenues: 15,500 122,000 50,000 300,000 45,000 $2,032,500 E9569 11 SE 004indd 168 Case Study 169 Appropriations: eneral government Public safety Highways and streets Health and sanitation Parks and recreation Total appropriations Budgeted excess of revenues over appropriations 260,000 868,000 290,000 215,000 330,000 1,963,000 69,500 HARVEY CITY GENERAL FUND TRANSACTIONS-20X4 1. Record the budget. (You may use a single Estimated Revenues account and a single 2. Reestablish the encumbrances of $19,000 that were closed at the end of last year Appropriations account.) 3. The city levied its general property taxes for the year of $1,580,000. The city estimates that $30,000 of the taxes will prove uncollectible. Record the taxes assuming the city will collect the remaining balance later during the fiscal year 4. The city collected $1,300,000 of property taxes before the due date for taxes. The remainder of the taxes receivable became delinquent 5. The city received and vouchered the materials and supplies that were on order from the previous year. The actual cost equaled the estimated cost of these materials and supplies, $19,000. The city records expenditures for materials and supplies when they are consumed. A perpetual inventory system is used. 6. The city collected $200,000 when investments matured and also collected the following eneral Fund revenues during the year: Fines and forfeitures Unrestricted grants from the state Licenses and permits Interest revenue from investments (including $2,000 accrued at the $48.480 346,200 122.460 end of 20X3) Total 42,000 559,140 7. The city incurred and paid salary expenditures as follows: Accrued salaries payable, January 1 General government Public safety Highways and streets Health and sanitation Parks and recreation $50,000 180,000 580,000 175,000 150,000 220,000 1,355,000 Total 8. The city ordered General Fund materials and supplies as follows General government Public safety Highways and streets Health and sanitation Parks and recreation 10,000 40,000 75,000 40,000 30,000 $ 195,000 Total 9. Billings were received from the Water and Sewer Enterprise Fund as follows: General government Public safety Highways and streets Health and sanitation Parks and recreation $ 900 13,500 3,300 2,900 1900 $ 22,500 Total MO4 FREE956911 SE_004indd 169 1 /17 2:52 PM 170 CHAPTER 4 The General Fund and Special Revenue Funds 10. Equipment was ordered for the following functions: 150,000 25,300 8,900 60,000 279,200 11. The equipment ordered was received (and vouchers approved) as follows: Estimated Cos Actual Cost 35,000 135,000 25.300 8,900 60,000 264,200 25.300 8,900 60,000 12. Billings were received from the Central Communications Network Internal Service Fund for communications services used by general government agencies and departments as follows: 18,000 15,000 3,500 6,630 13,940 57070 13. A total of $61,000 was paid on the amounts owed to the Central Communications Network Internal Service Fund 14. Other unencumbered expenditures incurred during the year were vouchered as follows 11,420 41,280 52,700 15. The General Fund loaned $500,000 to the Addiction Prevention Special Revenue Fund to provide working capital for that fund. The loan is to be repaid within a year 16. The General Fund transferred resources to other funds as follows: $60,000 200,000 70,000 729,965 Addiction Prevention Special Revenue Fund . . . .. . . . . . . . . . . . . . . . .. Parks and Recreation Capital Projects Fund.. . . . .. . . . . .. .. . 17. The General Fund received a transfer of $100,000 from the Water and Sewer Enterprise Fund 18. Accrued salaries and wages for General Fund employees at December 31 were as follows: 5,800 1,750 1,500 2,200 13.050