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Hello. I need help with the following homework problem. The problem was already uploaded once before on Chegg and answered by an expert. However, I

Hello. I need help with the following homework problem. The problem was already uploaded once before on Chegg and answered by an expert. However, I need further clarification on a journal entry. The homework problem question and solution is posted below. I need help with Journal Entry #16c, which is the last journal entry I posted below. The journal entry #16c, is the following in bold:

Revenues $126,901

Deferred Inflows of Resources - Unavailable Revenues $126,901

Can you explain to me how the above amount of $126,901 was calculated? Thanks. Here is the problem below:

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The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Credits Debits $276,120 183,000 $ 21,960 6,280 1,160 Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources-Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned 6,100 48,500 29,490 166, 160 6,100 198,130 $471,500 $471,500 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) Credit Fund / Governmental Transaction Activities General Journal Debit 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,140,000 and appropriations totaling $3,100,000 General Fund Estimated Revenues 3,140,000 Appropriations Budgetary Fund Balance 3,100,000 40,000 Governmental Activities No Journal Entry Required 2. The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). General Fund Cash 490,000 Expenditures 10,000 Tax Anticipation Notes Payable 500,000 2 Governmental Activities Cash 490,000 10,000 Expenses Tax Anticipation Notes Payable 500,000 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $43,000,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 3 General Fund General Taxes Receivable-Current 2,150,000 Allowance for Uncollectible Current Taxes 64,500 Revenues 2,085,500 Assignment Ful view Governmental Activities Taxes Receivable-Current 2,150,000 64,500 Allowance for Uncollectible Current Taxes General Revenues 2,085,500 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,060,000. 4 General Fund Encumbrances Encumbrances Outstanding 2,060,000 2,060,000 Governmental Activities No Journal Entry Required 5. $1,961,000 of current taxes, $103,270 of delinquent taxes, and $3,570 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 5a General Fund Record the $1,961,000 of current taxes, $103,270 of delinquent taxes, and $3,570 of interest and penalties collected Cash 2,067,840 Taxes Receivable-Current 1,961,000 Taxes Receivable-Delinquent 103,270 Interest and Penalties Receivable 3,570 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Deferred Inflows of Resources-Unavailable Revenues 106,840 Revenues 106,840 50 Governmental Activities Record the $1,961,000 of current taxes, $103,270 of delinquent taxes, and $3,570 of interest and penalties collected. Cash 2,067,840 Taxes Receivable-Current 1,961,000 Taxes Receivable-Delinquent 103,270 Interest and Penalties Receivable 3,570 5d Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. No Journal Entry Required General Fund 3,430 Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Revenues 1,029 2,401 Governmental Activities Interest and Penalties Receivable 3,430 Allowance for Uncollectible Interest and Penalties 1,029 General Revenues 2.401 7. Because of a change in state law, the city was notified that it will receive $80,000 less in intergovernmental revenues than was budgeted. General Fund Budgetary Fund Balance 80,000 Estimated Revenues 80,000 Governmental Activities No Journal Entry Required 8. Delinquent taxes of $12.792 were deemed uncollectible and written off. The associated interest and penalties of $952 also were written off 8 General Fund Allowance for Uncollectible Delinquent Taxes 12,792 Allowance for Uncollectible Interest and Penalties 952 Taxes Receivable-Delinquent Interest and Penalties Receivable 12,792 Governmental Activities Allowance for Uncollectible Delinquent Taxes 12,792 952 Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 12,792 952 9. Total payroll during the year was $819,490. Of that amount, $62,690 was withheld for employees' FICA tax liability, $103,710 for employees' federal income tax liability, and $34,400 for state taxes; the balance was paid to employees in cash. General Fund Expenditures 819,490 Due to Federal Government 166,400 Due to State Government 34,400 Cash 618,690 819,490 Governmental Activities Expenses Due to Federal Government 166,400 Due to State Government Cash 34,400 618,690 10. The employer's FICA tax liability was recorded for $62,690. 10 General Fund Expenditures Due to Federal Government 62,690 62,690 Governmental Activities Expenses 62,690 Due to Federal Government 62,690 11. Revenues from sources other than taxes were collected in the amount of $947,000. 11 General Fund Cash Revenues 947,000 947,000 Governmental Activities Cash 947,000 1 General Revenues 947,000 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund Due to Federal Government 258,580 Due to State Government 34,400 Vouchers Payable 292,980 Governmental Activities Due to Federal Government 258,580 34.400 Due to State Government Vouchers Payable 292,980 13. Purchase orders and contracts encumbered in the amount of $1,988,040 were filled at a net cost of $1,987,570, which was vouchered. 13a General Fund Record the encumbrances outstanding for 2020. Encumbrances Outstanding 1,988,040 Encumbrances 1,988,040 13b Record the total expenditures against vouchers payable for 2020. Expenditures Vouchers Payable 1,987,570 1,987,570 13C Governmental Activities Record the total expenses against vouchers payable for 2020 Expenses 1,987,570 Vouchers Payable 1,987,570 14. Vouchers payable totaling $2,201,660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures). - 14 General Fund Vouchers Payable 2,201,660 Cash Expenditures 2,193,630 8,030 Governmental Activities Vouchers Payable 2,201,660 Cash 2,193,630 8,030 Expenses 15. The tax anticipation note of $500,000 was repaid. 15 General Fund Tax Anticipation Notes Payable Cash 500,000 500,000 Governmental Activities (Tax Anticipation Notes Payable 500,000 Cash 500,000 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent 189,000 Taxes Receivable-Current 189,000 Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes 64,500 64,500 Record the deferred inflow of resource 126,901 Revenues Deferred Inflows of Resources-Unavailable Revenues 126,901

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