$[$Para$.4$a$-5]$ General Fund payrolls for the year totaled $$2,561,177.$ Of that amount,

$$300,737$ was withheld for federal payroll taxes; $$98,280$ for employees$$ state income

taxes; $$196,560$ for retirement funds administered by the state government; and the

remaining $$1,965,600$ was paid to employees in cash. The City of Bingham does not

record encumbrances for payrolls. The payrolls were chargeable against the following

functions$$ appropriations:

General Government $ $916,000$

Public Safety $1,316,000$

Public Works $249,750$

Culture and Recreation $79,427$

Total $$2,561,177$

Required: Make summary journal entries for payroll in both the General Fund and

governmental activities general journals for the year.

$6.[$Para$.4$a$-6]$ Invoices for some of the goods and services ordered in transaction $4$a$-3$

were received and vouchered for later payment. $($Select $$Elimination$$ in the drop down

$[$Description$]$ menu in the Detail Journal$)$:

Actual Estimated

General Government $ $689,000$ $ $689,500$

Public Safety $650,800650,800$

Public Works $612,425612,400$

Culture and Recreation $77,49077,500$

Totals $$2,029,715$ $$2,030,200$

Required: Record the receipt of these goods and the related vouchers payable in both

the General Fund and governmental activities journals. At the government$-$wide level,

you should assume the city uses the purchases inventory method. Thus, the invoiced

amounts above should be recorded as expenses of the appropriate functions, except for

$$225,000$ of vehicles ordered by Public Safety and $$300,000$ of equipment ordered by

Public Works. The vehicles and equipment meet the city$$s threshold for capitalization

$($debit Equipment for this item at the government$-$wide level$).$ Record expenditures

charged to the miscellaneous appropriation as General Government expenses at the

government$-$wide level.

$7.[$Para$.4$a$-7]$ The General Fund paid vouchers during the year in the amount of

$$2,117,627$ as well as its liabilities for employees$$ federal and state income taxes

withheld and payroll taxes.

Required: Record the payment of these items in both the General Fund and

governmental activities general journals.

$8.[$Para$.4$a$-8]$ The General Fund transferred $$20,000$ to the debt service fund for a bond

interest payment.

Required: Record this transaction in the General Fund only. The transaction has no

effect at the government$-$wide level since it occurs between two governmental activities.

Do not record this transaction in the debt service fund until instructed to do so in Chapter

$6$ of this case.

$9.[$Para$.4$a$-9]$ The balances in the current taxes receivable and related estimated

uncollectibles accounts were reclassified as delinquent.

Required: Record the reclassification in the General Fund and governmental activities

journals. Property tax revenues should be reduced and Deferred Inflows of Resources

should be recorded in the General Fund, since these revenues are considered

$$unavailable$$ under the modified accrual basis of accounting used in governmental

funds. At the government$-$wide level, the property taxes continue to be included in

current year revenue.

$10.[$Para$.4$a$-10]$ Interest and penalties of $$1,580$ were recorded on delinquent taxes, of

which $$158$ was estimated to be uncollectible. Sales taxes receivable of $$11,250$ were

also recorded.

Required: Interest and penalties should be recorded as Deferred Inflows of Resources,

rather than interest and penalties revenue, in the General Fund. On the other hand, sales

taxes are recorded as revenue in the General Fund since they will be collected shortly

after year end. At the government$-$wide level, both the interest and penalties and sales

taxes are recorded as current year revenue.

$11.[$Para$.4$a$-11]$ In view of unexpected revenue and expenditure developments the city

council revised the budgets for the current year as shown below:

Budget Adjustments

Estimated Revenues:

Property Tax $ $15,000$ increase

Sales Tax $3,750$ decrease

Interest and Penalties $1,000$ decrease

Appropriations:

Culture and Recreation $ $2,000$ decrease

Public Safety $6,000$ increase

General Government $4,500$ decrease