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Question: A) CH 2 At the start of the year beginning January 1, 2016, Podunks General Fund had a cash ba...

A) CH 2

At the start of the year beginning January 1, 2016, Podunks General Fund had a cash balance of $120,000, vouchers payable of $105,000, and unassigned fund balance of $15,000. There were no balances in either the Capital Projects Fund or the Debt Service Fund. Podunk has adopted the following budgetary and accounting policies.

1) Encumbrance accounting is used only for the acquisitions of supplies. Open encumbrances lapse at the end of the year but are considered in developing the next years budget.

2) For consistency with property taxes, available is defined for sales taxes as taxes as taxes expected be collected within the first 60 days of the next year.

Podunk uses separate funds for the following activities. State the names of the funds that Podunk will use of each

of these activities.

1) To account for its day-to-day operating activities

2) To acquire or construct major capital assets

3) To accumulate resources to service long-term debt

4) To operate a municipal zoo

B) CH 3

Use the following information to (a) record the opening account balances(from Podunk Chapter 2); (b) prepare journal entries to record all four transactions; and (c) post the journal entries to T-accounts.

Label your journal entries and in the T-accounts to associate with each item below. For example the first item should be identified as C3-1 (even though the amounts come from Chapter 2) Note there is no journal entry for recording the opening balances as they carried forward from the previous year. They do, however, have to be recorded in the T-accounts.

1. Record the opening balances

2. The Podunk City Council adopted the following budget for the General Fund at the beginning of the year 2016:

Revenues property taxes $1,200,000

Revenues sales taxes 210,000

Revenues parks admission fees 30,000

Appropriations:

Police salaries 900,000

Police supplies 120,000

Parks salaries 240,000

Transfer to Debt Service Fund 135,000

3. Two purchase orders, one for $105,000 and one for $12,000, were placed against the appropriations for police supplies.

4. Because the unit price was lower than anticipated, an invoice for $99,000 was received and approved for the supplies that had been order for $105,000.

5. The invoice for $99,000 was paid.

C) CH 5

Prepare journal entries, as appropriate, to record these transactions, and post the journal entries to T-accounts.

C5-1. Property taxes were levied in the amount of $1,212,000 in order to provide revenues of $1,200,000. Tax bills

were sent to the property owners.

C5-2. The account of a taxpayer who owed $9,000 was written off as uncollectible.

C5-3. Property taxes of $1,110,000 were collected in cash.

C5-4. At year-end, all uncollected taxes were declared delinquent. The Podunk finance director concluded that all the property taxes would be collected, so there was no need for any allowance for uncollectible taxes. He estimated that $63,000 of the delinquent taxes would be collected in January and February 2017 and that the rest of the taxes would be collected later in 2017.

C5-5. The state collects sales taxes on behalf of all cities in the state. During the year, Podunk received $204,000 in sales taxes from the state. The state also advised Podunk that it would remit an additional $18,000 in sales taxes (from sales made in 2016) by January 20, 2017.

C5-6. Podunk collected parks admission fees of $54,000 during the year.

C5-7. The unpaid vouchers of $105,000 at the beginning of the year were paid.

C5-8. Salaries in the amount of $1,080,000 were paid ($870,000 for the Police Department and $210,000 for the Parks Department).

C5-9. The payroll for the period ended December 31, 2016 which was included in the year 2016, will be paid on January 5, 2017 ($24,000 for the Police Department and $15,000 for the Parks Department).

C5-10. A Police Department sedan accidentally sideswiped a citizens vehicle in November 2016. Podunks corporation counsel estimated that the city would ultimately settle the citizens claim for about $12,000. It usually takes about 18 months to settle cases of this kind.

D) CH 6

Prepare journal entries for all funds, as appropriate, to record these transactions, and post the journal entries to T-accounts for each fund.

1. To provide financing for a new police station, Podunk sold bonds on April 1, 2016, in the amount of $1,500,000. Bond principal is payable over a 10-year period in 20 equal semiannual installments of $75,000, with interest of 6 percent per annum on the unpaid balance. The first payment is due on October 1, 2016.

2. Podunk purchased a prefabricated police station and paid $1,500,000 for it on delivery. The building, ready for occupancy on July 1, 2016 was expected to have a useful life of 25 years.

3. The General Fund transferred $135,000 to the Debt Service Fund in anticipation of the first installment of debt service.

4. The first installment of debt service became due and payable on October 1, 2016.

5. The first installment of debt service was paid.

E) CH 7

Record the opening balances in T-accounts, prepare journal entries to record the transactions, and post the journal entries to T-accounts.

1. Podunk City operates a municipal zoo. It started the year with cash of $15,000, net capital assets of $1,530,000 (the zoo habitats cost $1,800,000, and the accumulated depreciation was $270,000); and outstanding bonds of $1,440,000 (the original debt of $1,800,000 was being paid off over 15 years in equal annual installments of $120,000 on December 31 of each year, with interest of 5 percent per annum on the outstanding balance).

2. Podunk received zoo admissions fees of $210,000.

3. Salaries totaling $24,000 were paid to zoo employees.

4. Podunk paid the annual debt service requirement on the zoo habitat bonds.

5. Podunk recorded depreciation on the zoo habitats. The cost is being amortized over 20 years.

6. Prepare the pre-closing trial balance for:

General Fund

Capital Projects Fund

Debt Service Fund

Enterprise Fund

F) CH 9

Prepare the following fund financial statements and schedules:

1. Governmental funds balance sheet (Note: Classify the fund balance of the Debt Service Fund as Assigned fund balance.

2. Governmental funds state of revenues, expenditures, and changes in fund balances.

3. General Fund budgetary comparison schedule.

4. Proprietary funds statement of net position.

5. Proprietary funds statement of revenues, expenses, and changes in fund net position.

G) CH 10

1. Prepare the journal entries needed to convert the governmental funds financial statements to the governmental activities column of the government-wide financial statements. 2. Post the journal entries

3. Prepare the Podunk GW Statement on Net Position

4. Prepare the Podunk GW Statement of Activites