Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help need answers for chapter 4 cities of Smithville and Bingham 19th edition i have posted 2 separate other ones for chapter 4 because my

help need answers for chapter 4 cities of Smithville and Bingham 19th edition i have posted 2 separate other ones for chapter 4 because my question was to long please help it is due friday

  1. [Para. 4a-17] The balances in the current taxes receivable and related estimated uncollectibles accounts were reclassified as delinquent.

Required: Record the reclassification in the General Fund and governmental activities journals. Property tax revenues should be reduced and Deferred Inflows of Resources should be recorded in the General Fund, since these revenues are considered unavailable under the modified accrual basis of accounting used in governmental funds. At the government-wide level, the property taxes continue to be included in current year revenue.

  1. [Para. 4a-18] Interest and penalties of $59,580 were recorded on delinquent taxes, of which $10,750 was estimated to be uncollectible. Sales taxes receivable of $21,722 were also recorded.

Required: Interest and penalties should be recorded as Deferred Inflows of Resources, rather than interest and penalties revenue, in the General Fund. On the other hand, sales taxes are recorded as revenue in the General Fund since they will be collected shortly after year end. At the government-wide level, both the interest and penalties and sales taxes are recorded as current year revenue.

  1. [Para. 4a-19] In view of unexpected revenue and expenditure developments the city council revised the budgets for the current year as shown below:

Budget Adjustments

Estimated Revenues:

Property Tax $7,500 increase

Licenses and Permits 6,000 decrease

Fines and Forfeits 4,000 increase

Appropriations:

Culture and Recreation $3,000 decrease

Public Works 5,000 decrease

General Government 4,000 increase

Miscellaneous 3,000 increase

Required: Record the budget amendments in the General Fund general journal only. Budgetary items do not affect the government-wide accounting records. Select Budget Amendment in the [Description] field in the Detail Journal.

Post all journal entries to the general and subsidiary ledgers: After reviewing all entries for accuracy, including year and paragraph numbers, post all entries to the general ledger accounts and to all subsidiary ledger accounts, by clicking on [Post entries]. Also post all entries in the governmental activities journal.

  1. [Closing Entry] Following the instructions in the next paragraph, prepare and post the necessary entries to close the Estimated Revenues, Appropriations, and Estimated Other Financing Uses accounts to Budgetary Fund Balance; and Revenues, Expenditures, and Other Financing Uses to Fund BalanceUnassigned. Because the City of Bingham honors all outstanding encumbrances at year-end, it is not necessary to close Encumbrances to Encumbrances Outstanding at year-end since encumbrances do not affect the General Fund balance sheet or statement of revenues, expenditures, and changes in fund balances. However, if you would like to avoid having these accounts appear in the post-closing trial balance, you can opt to close Encumbrances to Encumbrances Outstanding. If the accounts are closed, they would need to be reestablished at the beginning of the next year, although entries are not required in this problem for the next year.

To close the temporary accounts, you must click on the box for [Closing Entry], Closing Entry checkbox will appear next to the [Add credit] field. Be sure the checkmark in the box for [Closing Entry] is showing as selected before closing each individual account. Also, with the exception of Estimated Other Financing UsesInterfund Transfers Out and Other Financing UsesInterfund Transfers Out, you will be sent to the Detail Journal where you must close each individual budgetary or operating statement account. To determine the closing amounts for both General Ledger and subsidiary ledger accounts, you should first print the pre-closing version of these ledgers for year 2023 from the [Reports] menu.

At year-end, an analysis by the citys finance department determined the following constraints on resources in the General Fund. Prepare the appropriate journal entry in the General Fund to reclassify amounts between Fund BalanceUnassigned and the fund balance accounts corresponding to the constraints shown below. You should consider the beginning of year balances in fund balance accounts in calculating the amounts to be reclassified.

Account Amount

Fund BalanceCommittedPublic Safety $20,300

Fund BalanceCommittedPublic Works 13,790

Fund BalanceAssigned Health and Welfare 19,500

Fund BalanceNonspendableInventory of Supplies 7,000

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

Step: 3

blur-text-image

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

Accounting Information Systems

Authors: Vernon Richardson, Chengyee Chang

1st edition

78025494, 978-0078025495

More Books

Students also viewed these Accounting questions