I need help filling in the templates attached using this problem. I also am unsure if my JE are correct.

The Balance Sheets of the General Fund and the Street and Highway Fund of the City of

Monroe as of December 31, 2014, follow. These (beginning) balances have been entered in

the proper general ledger accounts, as of 1/1/2015.

CITY OF MONROE

General Fund Balance Sheet

As of December 31, 2014

Assets

Cash $502,000

Taxes receivable $210,000

Less: Estimated uncollectible taxes (42,000)

net 168,000

Interest and penalties receivable on taxes 5,200

Less: Estimated uncollectible interest and penalties (950)

net 4,250

Due from state government 210,000

Total assets $884,250

Liabilities, Deferred Inflows, and Fund Equity

Liabilities:

Accounts payable $ 99,000

Due to other funds 27,000

Total liabilities 126,000

Deferred inflows ? Property taxes 21,000

Fund equity:

Fund balance?assigned

(for outstanding encumbrances) $17,000

Fund balance?unassigned 720,250

Total fund balance 737,250

Total liabilities, deferred inflows and fund equity $884,250

CITY OF MONROE

Street and Highway Fund Balance Sheet

As of December 31, 2014

Assets

Cash $21,000

Investments 59,000

Due from state government 109,000

Total assets $189,000

Liabilities and Fund Equity

Liabilities:

Accounts payable $9,000

Fund equity:

Fund balance?assigned for streets and

highways 180,000

Total liabilities and fund equity $189,000

Continuous Problem ? City of Monroe

This portion of the continuous problem continues the General Fund and special revenue

fund examples by requiring the recording and posting of the budgetary entries. To

reduce clerical effort required for the solution use control accounts for the budgetary

accounts, revenues, expenditures and encumbrances. Subsidiary accounts are not

required. Budget information for the City includes:

a) As of January 1, 2015, the City Council approved and the mayor signed a budget

calling for $11,250,000 in property tax and other revenue, $9,300,000 in

appropriations for expenditures, and $1,700,000 to be transferred to two debt service

funds for the payment of principal and interest.

b) Also as of January 1, 2015, the City Council approved and the mayor signed a budget

for the Street and Highway Fund that provided for estimated revenues from the state

government in the amount of $1,068,000 and appropriations of $1,047,000.

4?C. Part 1. General Fund Transactions

(1) Encumbrances of $ 17,000 for purchase orders outstanding at the end of 2014

were re-established.

(2) The January 1, 2015, balance in Deferred Inflows ? Property Taxes relates to the

amount of the 2014 levy that was expected to be collected more than 60 days

after December 31. This amount should be recognized as 2015 revenues.

(3) A general tax levy in the amount of $6,800,000 was made. It is estimated that 2

percent of the tax will be uncollectible.

(4) Tax anticipation notes in the amount of $500,000 were issued.

(5) Goods and supplies related to all encumbrances outstanding as of December 31,

2014 were received, along with invoices amounting to $16,600; the invoices

were approved for payment. The City maintains immaterial amounts in supply

inventories and it is the practice of the City to charge supplies to expenditure

when received.

(6) All accounts payable and the amount due other funds were paid.

(7) The General Fund collected the following ($ 10,811,500) in cash:

o prior year taxes, $158,000;

o interest and penalties receivable on prior year taxes, $3,500;

o current taxes, $6,400,000;

o $210,000 previously recorded as due from the state government;

o licenses and permits, $800,000;

o sales taxes, $2,890,000; and

o miscellaneous revenues, $350,000.

Continuous Problem ? City of Monroe

4

(8) Purchase orders and contracts were issued in the amount of $3,465,000.

(9) Payrolls for the General Fund totaled $5,070,000. Of that amount, $498,000

were withheld for employees? federal income taxes and $357,000 were

withheld for employees? FICA and Medicare tax liability; the balance was paid

in cash. The encumbrance system is not used for payrolls.

(10) The liability for the city?s share of FICA and Medicare taxes, $357,000, was

recorded as was the liability for state unemployment taxes in the amount of

$28,000.

(11) Invoices for most of the supplies and services ordered in transaction 8 were

received in the amount of $3,375,300 and approved for payment. The related

encumbrance amounted to $3,407,000.

(12) Tax anticipation notes were paid at maturity, along with interest in the amount

of $18,000.

(13) Notification was received that an unrestricted state grant in the amount of

$332,000 would be received during the first month of the next year.

(14) The General Fund recorded a liability to the Water and Sewer Fund for services

in the amount of $37,000 and to the Stores and Services Fund for supplies in

the amount of $313,200; $310,000 of the amount due the Stores and Services

Fund was paid.

(15) The General Fund recorded an amount due of $52,000 from the state

government, representing sales taxes to be collected from retail sales taking

place during the last week of the year.

(16) The General Fund paid accounts payable in the amount of $3,015,000 and paid

the amounts due the federal and state governments. The General Fund also

transferred to the debt service funds cash in the amount of $1,662,000 for the

recurring payment of principal and interest.

(17) All required legal steps were accomplished to increase appropriations by the

net amount of $212,000. Estimated revenues were increased by $73,000.

(18) The City Council authorized a write-off of $51,000 in delinquent property taxes

and corresponding interest and penalties amounting to $1,600.

(19) Interest and penalties receivable on taxes were accrued in the amount of

$17,200; $1,100 of this amount is expected to be uncollectible.

(20) It is estimated that $27,500 of the outstanding taxes receivable will be collected

more than 60 days beyond the fiscal year-end.

c. Prepare and post the closing entries for the General Fund. Outstanding encumbrances at

year end are classified as Assigned Fund Balance and all remaining net resources are

classified as Unassigned Fund Balance.

d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the year

ended December 31, 2015. Confirm that the revenue and expenditure control accounts

agree with the following detail and use this information in the Statement:

Revenues Expenditures

Property Taxes . . . . . . $6,657,500 General Government . . . $1,646,900

Sales Taxes 2,942,000 Public Safety . . . . . . . . . 3,026,900

Interest and Penalties

on Taxes . . . . . . . . . . . 16,100 Highways and Streets . . 1,441,400

Licenses and Permits . 800,000 Sanitation . . . . . . . . . . . . 591,400

Intergovernmental

Revenue . . . . . . . . . . . 332,000 Health . . . . . . . . . . . . . . 724,100

Miscellaneous Revenue 350,000 Welfare . . . . . . . . . . . . . 374,300

Total . . . . . . . . . . . . $11,097,600 Culture and Recreation . 917,300

Capital Outlay . . . . . . . . 492,800

Total . . . . . . . . . . . . . $9,215,100

e. Prepare in good form a Balance Sheet for the General Fund as of the end of fiscal year,

December 31, 2015.

Encumbrances Reserve for Encumbrances 17,000 Defered inflows property taxes Revenue 21,000 Property tax receivable Uncollectible tax Revenue Cash Tax anticipation notes payable Expenditure Reserve for encumbrances Accounts payable Encumbrances Accounts payable Other fund payable Cash Cash Property tax receivable -2014 Due from state government Property tax receivable - 2015 Interest and penalties receivable on taxes - 2014 Licenses and permits Sales tax Miscellaneous revenues 17,000 21,000 6,800,000 136,000 6,664,000 500,000 500,000 16,600 16,600 16,600 16,600 115,600 27,000 142,600 10,811,500 158,000 210,000 6,400,00 3,500 800,000 2,890,000 350,000 Encumbrances Reserve for encumbrances 3,465,000 Payroll for general fund Federal incme tax withheld for employees FICA contributions Cash 5,070,000 Payroll expense FICA contributions - city share State unemployment tax revenue 3,465,000 498,000 357,000 4,215,000 385,000 357,000 28,000 Expenditure Reserve for encumbrances Accounts payable Encumbrances 3,375,300 3,407,000 3,375,300 3,407,000 Tax anticipation notes payable Interest expense Cash 500,000 18,000 Estimated fund - state grant Unreserved fund balance 332,000 Expenditure Water and sewer fund Stores and services fund 350,200 Stores and service fund Cash 310,000 Sales tax receivable Revenue Accounts Payable Debt Service fund Cash Estimated revenues Fund balance Appropriations 518,000 332,000 37,000 313,200 310,000 52,000 52,000 3,010,000 1,662,000 4,672,000 73,000 139,000 212,000 Property tax receivable - Delinquent Interest and penalities Property tax receivable Interest and penalties 51,000 1,600 Interest and penalties on taxes Estimated uncollectible taxes Revenue 17,200 Estimated revenue - deferred Tax Receivable 27,500 51,000 1,600 1,100 16,100 27,500 CLOSING ENTRIES FOR THE GENERAL FUND State income Cash Taxes Penalties Income summary 210,000 502,000 42,000 950 Income summary Accounts payable Other funds Property taxes 147,000 Fund balance Total dividends 720,250 754,950 99,000 27,000 21,000 720,250 Statement of Expenditures, Revenue and Changes of Fund Balance For the year ended December 31, 2015 Revenues: Tax Difference inflows Tax antic. Cash Interest Pen. Other taxes Due Licenses and permits Sales taxes Misc. Fed. Income tax FICA State due Approp. Esti. Revenue 6,664,000 21,000 516,100 10,811,500 158,000 6,657,500 210,000 800,000 2,890,000 350,000 498,000 357,000 52,000 212,000 73,000 Total Revenue 30,270,100 Expenditures: Encumbrances Inv. Enc Purchase & Cont Payroll FICA Liab State unemploy tax Invoices Tax Antic. Sanitation Stores & Serv. Gov. due Paid accts Debts Highways & Street Other Total expenditures Excess rev 17,000 16,600 3,465,000 4,215,000 357,000 28,000 3,375,300 18,000 37,000 31,000 52,000 3,015,000 1,662,000 1,441,400 3,407,000 21,137,300 9,132,800 Starting balance Ending balance 18,912,300 11,357,800 City of Monroe - General Fund Balance Sheet For the Year Ended December 31, 2015 Assets: Current Assets Property taxes General Government Sales Tax Interest penalty Licenses & permits Intergovernmental revenue Misc. revenue Total current assets Long Term Assets Appropriation Total long term assets Total assets 6,657,500 1,646,900 2,942,000 16,100 800,000 332,000 350,000 12,744,500 212,000 212,000 12,956,500 Liabilities: Current liabilities Streets & highways Sanitation Health Culture & recreation Welfare Public Saftey Total current liabilites 2,882,800 591,400 724,100 917,300 374,300 3026900 8516800 Equity Capital Retained earning Total equity 492,800 3,946,900 4,439,700 Total liabilities and equity 12,956,500 Due from state government Intergovernmental revenue Cash Due from state government 1,072,000 1,072,000 985,000 985,000 Encumbrances Reserve for encumbrances 1,062,000 Expenditure - street & highway Accounts payable 1,030,500 Reserve for Encumbrances Encumbrances 1,043,000 Cash Investment interest revenue Accounts payable Cash Budgetary fund balance Appropriations 1,062,000 1,030,500 1,043,000 5,120 5,120 923,000 923,000 4,500 4,500 CLOSING ENTRIES Appropriations Budgetary fund balance Assigned fund balance 1,051,500 16,500 Intergovermental revenue Investment interest revenue Expenditures - street & highway Unassigned Fund balance 1,072,000 5,120 1,068,000 1,030,500 46,620 1,072,000 5120 1,077,120 1,030,500 46,620 1,077,120 Statement of Revenues, Expenditures and Changes in Fund Balances For the Street and Highway Fund For the Year Ended December, 31, 2015 Revenues: Intergovernmental revenue Interest on Investments Total revenues Expenditures: Street and Highway Maintenance Total Expenditures Excess of Revenues over Expenditures Fund Balance, Jan. 1 Fund Balance, Dec. 31 $1,072,000 5,120 $1,077,120 1,030,500 1,030,500 46,620 180,000 $226,620 Balance Sheet For the Street and Highway Fund For the Year Ended December 31, 2015 Assets Cash Investments Due for State Governement Total Assets $88,120 59,000 196,000 $343,120 Liabilities and Fund Equity Liabilities: Accounts Payable $116,500 Fund Equity: Restricted Fund Balance Total Liabilities and Fund Equity 226,620 $343,120