Not for Profit

Assignment II Due 18^thNovember 2015

The following is a trial balance of the General Fund of the city of Lynnville as of

December 31, 20X0, after closing entries:

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33,600

Taxes ReceivableDelinquent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25,400

Allowance for Uncollectible Delinquent Taxes . . . . . . . . . . . . . . . . . .$ 5,900

Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15,500

Allowance for Uncollectible Accounts . . . . . . . . . . . . . . . . . . . . . . . . .2,500

Vouchers Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42,000

Encumbrances Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16,000

Fund Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8,100

$74,500$74,500

(Because interest and penalties on taxes are not material, they are not accrued.)

The following transactions took place during 20X1:

1.The budget for the year was adopted. Revenues were estimated at $216,000;appropriations of $229,000 were made, including an appropriation of $16,000for materials ordered in 20X0, covered by the Reserve for Encumbrances.

2.Delinquent taxes of $2,800 were declared uncollectible and written off.

3.Property taxes of $210,000 were levied; a 3percent allowance for estimated losses was provided.

4.Uniforms estimated to cost $15,000 were ordered, as was a snowplow estimated

to cost $3,500.

5.The materials ordered in 20X0 and set up as an encumbrance of that year for

$16,000 was received; the actual cost, $15,000, was vouchered for later payment.

6.Collections were made as follows:

Current Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $182,000

Delinquent Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8,500

Interest and Penalties on Taxes . . . . . . . . . . . . . . . . . . . . . . . . . .200

Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7,300

$198,000

7.Received a bill for $3,000 from the city central printing shop.

8.Payroll vouchers for $100,000 were approved and paid, as was a transfer of $38,000 to a Debt Service Fund to cover serial bond debt service.

9.The uniforms and snowplow (ordered in 4) were received; the invoices were for

$16,000 and $3,800, respectively.

10.Delinquent taxes of $350, written off in preceding years, were collected.

11.Current taxes receivable became delinquent.

12.Paid $200 to a Special Revenue Fund for supplies acquired for General Fund purposes, but originally paid for from (and recorded as expenditures in) a Special Revenue Fund; and paid $60,000 of vouchers payable.

13.An order was placed for equipment estimated to cost $24,000.

14.Miscellaneous revenues of $5,000 were collected, and $5,000 was received from a discontinued Capital Projects Fund.

Required :

1.Post the opening trial balance to T-accounts.

2.Post (1-14) to T-accounts.

3.Prepare preclosing trial balance at December 31, 20X1.

4.Prepare closing journal entries.

5.Post (4 above) to T-accounts.

6.Prepare a postclosing trial balance at December 31, 20X1.

Based on your solution to Problem above, prepare for the city of Lynnville General Fund

(a)A statement of revenues, expenditures, and changes in fund balances for the year ended December 31, 20X1

(b)A balance sheet at December 31, 20X1