Item2

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Item 2

P17-14 General Fund Entries [AICPA Adapted] LO 17-7, 17-8

The following trial balances were taken from the accounts of Omega Citys general fund before the books had been closed for the fiscal year ended June 30, 20X2:

	Trial Balance						Trial Balance
	July 1, 20X1						June 30, 20X2
Cash		$	400,000					$	700,000
Taxes Receivable			150,000						170,000
Allowance for Uncollectible Taxes			(40,000	)					(70,000	)
Estimated Revenues Control									3,000,000
Expenditures									2,900,000
Encumbrances									91,000
Total		$	510,000					$	6,791,000
Vouchers Payable		$	80,000					$	408,000
Due to Other Funds			210,000						142,000
Fund BalanceAssigned for Encumbrances			60,000
Fund BalanceUnassigned			160,000						220,000
Revenue from Taxes									2,800,000
Miscellaneous Revenues									130,000
Appropriations Control									2,980,000
Budgetary Fund BalanceAssigned for Encumbrances									91,000
Budgetary Fund BalanceUnassigned									20,000
Total		$	510,000					$	6,791,000

Additional Information:

1. The estimated taxes receivable for the year ended June 30, 20X2, were $2,870,000, and the taxes collected during the year totaled $2,810,000. Miscellaneous revenue of $130,000 also was collected during the year.
2. Encumbrances in the amount of $2,700,000 were recorded. In addition, the $60,000 of lapsed encumbrances from the 20X1 fiscal year was renewed.
3. During the year, the general fund was billed $142,000 for services performed on its behalf by other city funds (debit Expenditures).
4. An analysis of the transactions in the Vouchers Payable account for the year ended June 30, 20X2, follows:

	Debit (Credit)
Current expenditures (liquidating all encumbrances to date except for renewed 20X1 commitment)		$	(2,700,000	)
Expenditures applicable to previous year			(58,000	)
Vouchers for payments to other funds			(210,000	)
Cash payments during year			2,640,000
Net change		$	(328,000	)

5. On May 10, 20X2, encumbrances were recorded for the purchase of next years supplies at an estimated cost of $91,000.

Required: On the basis of the data presented, reconstruct the original detailed journal entries that were required to record all transactions for the fiscal year ended June 30, 20X2, including the recording of the current years budget. Do not prepare closing entries for June 30, 20X2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• A

  Record the budget.

• B

  Record the tax levy.

• C

  Record the tax collection.

• D

  Record the entry to write off the uncollectible taxes.

• E

  Record the collection of miscellaneous revenue.

• F

  Record the entry to reverse the prior reserve, which has been renewed.

• G

  Record the entry to renew the encumbrances from the prior period.

• H

  Record the encumbrances.

• I

  Record the liability to other funds for services received.

• J

  Record the entry to reverse the encumbrances for the items received.

• K

  Record the expenditures.

• L

  Record the entry to reverse the reserve for encumbrances.

• M

  Record the actual expenditures incurred in the prior period.

• N

  Record the approval for payments due to other funds.

• O

  Record the voucher payments.

• P

  Record the encumbrance of supplies on May 10, 20X2.