Question
Jefferson County General Fund began the year 2015 with the following account balances: Debits Credits Cash $132,328 Taxes Receivable 47,220 Allowance for Uncollectible Taxes $1,570
Jefferson County General Fund began the year 2015 with the following account balances:
Debits | Credits | |
Cash | $132,328 | |
Taxes Receivable | 47,220 | |
Allowance for Uncollectible Taxes | $1,570 | |
Supplies | 660 | |
Deferred Inflows Property Taxes | 21,000 | |
Wages Payable | 900 | |
Fund Balance | 156,758 | |
Totals | $180,228 | $180,228 |
During 2015, Jefferson experienced the following transactions:
1. The budget was pased by the County Commission, providing estimated revenues of $250,000 and approprations of $200,000 and estimated financing uses of $40,000.
2. Encumbrances totaling $4,800 outstanding at Dec. 31, 2014, were re-established.
3. The Deferred Inflows- Property Taxes at Dec. 31, 2014 is recognized as revenue in the current period.
4. Property taxes in the amount of $265,000 were levied by the County. It is estimated 0.5% (1/2 of 1 percent) will be uncollectible.
5. Property tax collections totaled $258,000. Accounts totaling $1,020 were written off as uncollectible.
6. Encumbrances were issued for supplies in the amount of 36,000.
7. Supplies in the amount of $39,800 were received. Jefferson County records supplies as an asset when acquired. The related encumbrances for these items totaled $40,000 and included the $4,800 encumbered last year. The county paid $37,800 on accounts payable during the year.
8. The County contracted to have alarm systems (capital assets) installed in the administration building at a cost of $39,900. The systems were installed and the amount was paid.
9. Paid wages totaling $133,900, including the amount payable at the end of 2014. (these were general government operation)
10. Paid other general government operating items of $7,600.
11. The general fund transferred $43,000 to the debt service fund in anticipation of bond interest and prncipal payments.
Additional Info:
12. Wages earned but unpaid at the end of the year amounted to $850.
13. Supplies of $350 were on hand at the end of the year. (supplies are used for general government operations.)
14. A review of property taxes receivable indicates that $22,600 of the outstanding balances would likely be colected more than 60 days after year-end and should be deferred.
QUESTION:
Use the Excel template provided to complete the following requirements.
a. Prepare journal entries to record the information decribed in items 1 to 14. Classify expenditures in the General Fund as either General Government or Capital Outlay. Make entries directly to these and the individual revenue accounts; do not use subsidiary ledgers.
b. Post these entries to T accounts
c. Prepare closing journal entries; post to the T accounts provided.Classify fund balances assuming thre are no restricted or committed net resources and the only assigned net resources are the outstanding encumbrances.
d. Prepare a Statement of Revenues, Expedituresm and Changes in Fund Balance for the General Fund for the year ending 2015.
e. Prepare a Balance Sheet for the General Fund as of Dec. 31, 2015
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