P5-2

1. The following are the estimated revenues for a Special Revenue Fund of the city of Marcelle at January 1, 20X5:

Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $175,000

Interest and penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000

Fines and fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700

Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

Animal licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900

Rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500

Other licenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000

$183,900

2. The city records its transactions on a cash basis during the year and adjusts to the modified accrual basis at year end. At the end of January, the following SRF collections had been made.

Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,000

Interest and penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000

Fines and fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

Animal licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800

Rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Other licenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000

$ 94,035

3. An unanticipated grant-in-aid of $5,000 was received from the state on February 1.

4. SRF collections for the remaining 11 months were as follows:

Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 70,000

Interest and penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800

Fines and fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400

Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Animal licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455

Other licenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900

$ 72,955

5. Accrued SRF receivables at year-end were as follows:

Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 20,000

Interest and penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

Rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

$ 20,360

Only half of the taxes and interest and penalties receivable is expected to be collected during the first 60 days of 20X6. All of the rent and interest receivable should be received in January 20X6.

Required

a. Prepare the General Ledger and subsidiary ledger entries to record the SRF estimated revenues, revenue collections, and revenue accruals.

b. Post to SRF General Ledger worksheet (or T-accounts) and to subsidiary revenue accounts.

c. Prepare SRF closing entries for both the General and Revenues Subsidiary Ledgers.

d. Post to the SRF General Ledger worksheet (or T-accounts) and to the subsidiary revenue accounts.

e. Prepare a SRF statement of estimated revenues compared with actual revenues (i.e., essentially the revenue portion of a budgetary comparison statement) for 20X5.