ons and Exhibits The following assumptions and exhibits will be used in preparing the practice set. The Town's opening balances are: 200 Cash $40,000 410 State and Federal, Other $10,000 440 Due from Other Governments $10,000 909 Fund Balance $60,000 (General Ledgers are already posted) Exhibit A The following budget was approved for 20XX year: A510 Estimated Revenues A1001 Real Property Taxes A1120 Sales Tax A3820 State Aid A599 Appropriated Fund Balance A960 Appropriations 3 $ 100,000 $50,000 40,000 10,000 $ 30,000 $130,000 INTRODUCTION TO GOVERNMENTAL ACCOUNTING Appropriation Subsidiaries A3120.1 A3120.2 Police Personal Services Police-Equipment $ 50,000 21,000 A3120.4 Police Contractual 11,000 A7110.1 A7110.2 Parks Equipment Parks Personal Services 25,000 12,000 A7110.4 A1990.4 Parks Contractual 10,000 Contingent Account 1.000 $130.000 Exhibit B The following payrolls were prepared and recorded during the first two months. The town pays all employees on a bi-weekly basis. Payroll #1 Police 3120.1 Parks 7110.1 $1,500.00 $ 750.00 (only gross payroll entries will be made) Payroll #2 Police 3120.1 $1,500.00 Parks 7110.1 $ 750.00 Payroll #3 Police 3120.1 $1,500.00 Parks 7110.1 $ 750.00 Payroll #4 Police 3120.1 Parks 7110.1 $1,500.00 $ 750.00 The following abstracts were paid during the two-month period of our practice set. Exhibit C Abstract #1 Claim # Claimant Account Amount Check # 1 ABC Park Equipment 7110.2 $ 300.00 2 Lewis Uniforms 3120.4 500.00 3 Handy Plumbing 7110.4 100.00 4 King Hardware 7110.4 250.00 5 Eager Janitorial Service 3120.4 100.00 $1,250.00 Summary 3120.4 $ 600.00 7110.2 300.00 7110.4 350.00 $1,250,000 Abstract #2 Claim # Claimant Account Amount Check # 6 Jack's Printing Company 7110.4 200.00 7 XYZ Equipment 3120.2 *12,400.00 8 Jones Lumber 7110.4 100.00 9 Handy Plumbing 7110.4 100.00 10 Lewis Uniforms 3120.4 400.00 $13.200.00 Summary 3120.2 $12,400.00 3120.4 400.00 7110.4 400.00 $13,200.00 *This was originally encumbered. INTRODUCTION TO GOVERNMENTAL ACCOUNTING A. Accounting Entries January 2 January 2 January 5 January 10 The budget included in Exhibit A is journalized and posted to the appropriate ledgers. Real Property Tax bills are prepared and mailed amounting to $50,000. Sales Tax Revenues ($10,000) for the 4th quarter of last year is received. A State aid youth claim is prepared and submitted for $1,000. Moneys are anticipated to be received during the town's fiscal year. January 15 - January 20 January 29 - - Payroll #1 in Exhibit B is paid.. Received prior year State aid claim accrued minus $500 disallowance. Payroll #2 in Exhibit B is paid. January 30 - Abstract #1 in Exhibit C is paid. January 31 February 1 February 2 February 10 February 16 February 17- February 22 - - - - - Tax Collector remits tax moneys in the amount of $40,000. The Police Department issues purchase order #1 for equipment (3120.2) in the amount of $13,000. Receives State aid for youth program in the amount of $1,100 ($100 adjustment for mathematical mistake). Tax Collector submits balance of taxes ($10,000) in addition to $200 in interest. Payroll #3 in Exhibit B is paid. The Police Department issues purchase order #2 for equipment in the amount of $9,000. (Hint: If there is insufficient appropriations, transfer from 3120.4.) Paid Abstract #2 Exhibit C. TO:5123008 February 28 - Practice Set Record Payroll #4 Exhibit B. Payroll should charge 80 percent to month of February, 20 percent should be attributed to March. B. Adjusting Entries 1. Park equipment in the amount of $4,000. (7110.2) was received but never recorded. 2. A State aid claim has just been submitted $5,000 (youth program). C. Prepare Closing Entries D. Prepare Year-End Financial Statements (Form of Statements in Packet)