| Transaction | Fund / Governmental Activities | General Journal | Debit | Credit |
| 1. The budget for FY 2023 provided for General Fund estimated revenues totaling $3,300,000, appropriations totaling $3,080,000, and an other financing useinterfund transfer out of $172,000. |
| 1 | General Fund | Estimated Revenuesselected answer correct | 3,300,000selected answer correct | not attempted |
| | Appropriationsselected answer correct | not attempted | 3,080,000selected answer correct |
| | Estimated Other Financing Usesselected answer correct | not attempted | 172,000selected answer correct |
| | Budgetary Fund Balanceselected answer correct | not attempted | 48,000selected answer correct |
| | | | |
| 2. The city council authorized temporary borrowing of $580,000 in the form of a 120-day tax anticipation note obtained from a local bank. |
| General Fund and Governmental Activities | Cashselected answer correct | 580,000selected answer correct | not attempted |
| | Tax Anticipation Notes Payableselected answer correct | not attempted | 580,000selected answer correct |
| | | | |
| 3. The property tax levy for FY 2023 was recorded. Net assessed valuation of taxable property for the year was $45,900,000, and the tax rate was $5 per $100. It was estimated that 2 percent of the levy would be uncollectible. |
| 3 | General Fund | Taxes ReceivableCurrentselected answer correct | 2,295,000selected answer correct | not attempted |
| | Allowance for Uncollectible Current Taxesselected answer correct | not attempted | 45,900selected answer correct |
| | Revenuesselected answer correct | not attempted | 2,249,100selected answer correct |
| | | | |
| Governmental Activities | Taxes ReceivableCurrentselected answer correct | 2,295,000selected answer correct | not attempted |
| | Allowance for Uncollectible Current Taxesselected answer correct | not attempted | 45,900selected answer correct |
| | Revenuesselected answer correct | not attempted | 2,249,100selected answer correct |
| | | | |
| 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,140,000. |
| 4 | General Fund | Encumbrancesselected answer correct | 2,140,000selected answer correct | not attempted |
| | Encumbrances Outstandingselected answer correct | not attempted | 2,140,000selected answer correct |
| | | | |
| Governmental Activities | No Journal Entry Requiredselected answer correct | not attempted | not attempted |
| | not attempted | not attempted | not attempted |
| | | | |
| 5. $2,090,000 of current taxes, $391,270 of delinquent taxes, $21,370 of interest and penalties, and $19,000 of accrued sales taxes were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. |
| | Record the $2,090,000 of current taxes, $391,270 of delinquent taxes, and $21,370 of interest and penalties collected. |
| 5a | General Fund | Cashselected answer correct | 2,521,640selected answer correct | not attempted |
| | Taxes ReceivableCurrentselected answer correct | not attempted | 2,090,000selected answer correct |
| | Taxes ReceivableDelinquentselected answer correct | not attempted | 391,270selected answer correct |
| | Interest and Penalties Receivableselected answer correct | not attempted | 21,370selected answer correct |
| | Sales Taxes Receivableselected answer correct | not attempted | 19,000selected answer correct |
| | | | |
| 5b | | Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. |
| | Deferred Inflows of ResourcesUnavailable Revenuesselected answer correct | 412,640selected answer correct | not attempted |
| | Revenuesselected answer correct | not attempted | 412,640selected answer correct |
| | | | |
| 5c | Governmental Activities | Record the $2,090,000 of current taxes, $391,270 of delinquent taxes, and $21,370 of interest and penalties collected. |
| | Cashselected answer correct | 2,521,640selected answer correct | not attempted |
| | Taxes ReceivableCurrentselected answer correct | not attempted | 2,090,000selected answer correct |
| | Taxes ReceivableDelinquentselected answer correct | not attempted | 391,270selected answer correct |
| | Interest and Penalties Receivableselected answer correct | not attempted | 21,370selected answer correct |
| | Sales Taxes Receivableselected answer correct | not attempted | 19,000selected answer correct |
| | | | |
| 5d | | Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. |
| | No Journal Entry Requiredselected answer correct | not attempted | not attempted |
| | not attempted | not attempted | not attempted |
| | | | |
| 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $39,230, of which 30 percent was estimated to be uncollectible. |
| 6 | General Fund | Interest and Penalties Receivableselected answer correct | 39,230selected answer correct | not attempted |
| | Allowance for Uncollectible Interest and Penaltiesselected answer correct | not attempted | 11,769selected answer correct |
| | Revenuesselected answer correct | not attempted | 27,461selected answer correct |
| | | | |
| Governmental Activities | Interest and Penalties Receivableselected answer correct | 39,230selected answer correct | not attempted |
| | Allowance for Uncollectible Interest and Penaltiesselected answer correct | not attempted | 11,769selected answer correct |
| | Revenuesselected answer correct | not attempted | 27,461selected answer correct |
| | | | |
| 7. Because of a change in state law, the city was notified that it will receive $96,000 less in intergovernmental revenues than was budgeted. |
| 7 | General Fund | Budgetary Fund Balanceselected answer correct | 96,000selected answer correct | not attempted |
| | Estimated Revenuesselected answer correct | not attempted | 96,000selected answer correct |
| | | | |
| Governmental Activities | No Journal Entry Requiredselected answer correct | not attempted | not attempted |
| | not attempted | not attempted | not attempted |
| | | | |
| 8. Delinquent taxes of $13,592 were deemed uncollectible and written off. The associated interest and penalties of $1,032 also were written off. |
| 8 | General Fund | Allowance for Uncollectible Delinquent Taxesselected answer correct | 13,592selected answer correct | not attempted |
| | Allowance for Uncollectible Interest and Penaltiesselected answer correct | 1,032selected answer correct | not attempted |
| | Taxes ReceivableDelinquentselected answer correct | not attempted | 13,592selected answer correct |
| | Interest and Penalties Receivableselected answer correct | not attempted | 1,032selected answer correct |
| | | | |
| Governmental Activities | Allowance for Uncollectible Delinquent Taxesselected answer correct | 13,592selected answer correct | not attempted |
| | Allowance for Uncollectible Interest and Penaltiesselected answer correct | 1,032selected answer correct | not attempted |
| | Taxes ReceivableDelinquentselected answer correct | not attempted | 13,592selected answer correct |
| | Interest and Penalties Receivableselected answer correct | not attempted | 1,032selected answer correct |
| | | | |
| 9. Total payroll during the year was $899,490. Of that amount, $68,810 was withheld for employees' FICA tax liability, $111,710 for employees' federal income tax liability, and $35,200 for state taxes; the balance was paid to employees in cash. |
| 9 | General Fund | Expendituresselected answer correct | 899,490selected answer correct | not attempted |
| | Due to Federal Governmentselected answer correct | not attempted | 180,520selected answer correct |
| | Due to State Governmentselected answer correct | not attempted | 35,200selected answer correct |
| | Cashselected answer correct | not attempted | 683,770selected answer correct |
| | | | |
| Governmental Activities | Expensesselected answer correct | 899,490selected answer correct | not attempted |
| | Due to Federal Governmentselected answer correct | not attempted | 180,520selected answer correct |
| | Due to State Governmentselected answer correct | not attempted | 35,200selected answer correct |
| | Cashselected answer correct | not attempted | 683,770selected answer correct |
| | | | |
| 10. The employer's FICA tax liability was recorded for $68,810. |
| 10 | General Fund | Expendituresselected answer correct | 68,810selected answer correct | not attempted |
| | Due to Federal Governmentselected answer correct | not attempted | 68,810selected answer correct |
| | | | |
| Governmental Activities | Expensesselected answer correct | 68,810selected answer correct | not attempted |
| | Due to Federal Governmentselected answer correct | not attempted | 68,810selected answer correct |
| | | | |
| 11. Cash collections from sales taxes totaled $833,000 and from revenue sources other than taxes were $118,000. In addition, sales taxes receivable due July 1 were accrued in the amount of $12,800. |
| 11 | General Fund | Cashselected answer correct | 951,000selected answer correct | not attempted |
| | Sales Taxes Receivableselected answer correct | 12,800selected answer correct | not attempted |
| | Revenuesselected answer correct | not attempted | 963,800selected answer correct |
| | | | |
| Governmental Activities | Cashselected answer correct | 951,000selected answer correct | not attempted |
| | Sales Taxes Receivableselected answer correct | 12,800selected answer correct | not attempted |
| | Revenuesselected answer correct | not attempted | 963,800selected answer correct |
| | | | |
| 12. Amounts due to the federal government as of June 30, 2023, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. |
| 12 | General Fund | Due to Federal Governmentselected answer correct | not attempted | 67,490selected answer incorrect |
| | Due to State Governmentselected answer correct | 35,200selected answer correct | not attempted |
| | Vouchers Payableselected answer correct | not attempted | 191,700selected answer incorrect |
| | | | |
| Governmental Activities | Due to Federal Governmentselected answer correct | not attempted | 156,500selected answer incorrect |
| | Due to State Governmentselected answer correct | 35,200selected answer correct | not attempted |
| | Vouchers Payableselected answer correct | not attempted | 191,700selected answer incorrect |
| | | | |
| 13. Purchase orders and contracts encumbered in the amount of $2,068,040 were filled at a net cost of $2,067,570, which was vouchered. |
| 13a | General Fund | Record the reversal of encumbrances entry of 2023. |
| | Encumbrances Outstandingselected answer correct | 2,068,040selected answer correct | not attempted |
| | Encumbrancesselected answer correct | not attempted | 2,068,040selected answer correct |
| | | | |
| 13b | | Record the receipt of vouchers for the purchase orders and contracts encumbered for 2023. |
| | Expendituresselected answer correct | 2,067,570selected answer correct | not attempted |
| | Vouchers Payableselected answer correct | not attempted | 2,067,570selected answer correct |
| | | | |
| 13c | Governmental Activities | Record the receipt of vouchers for the purchase orders and contracts encumbered for 2023. |
| | Expensesselected answer correct | 2,067,570selected answer correct | not attempted |
| | Vouchers Payableselected answer correct | not attempted | 2,067,570selected answer correct |
| | | | |
| 14. Vouchers payable totaling $2,381,660 were paid after deducting a credit for purchases discount of $8,830 (credit Expenditures). |
| 14 | General Fund | Vouchers Payableselected answer correct | 2,381,660selected answer correct | not attempted |
| | Cashselected answer correct | not attempted | 2,372,830selected answer correct |
| | Expendituresselected answer correct | not attempted | 8,830selected answer correct |
| | | | |
| Governmental Activities | Vouchers Payableselected answer correct | 2,381,660selected answer correct | not attempted |
| | Cashselected answer correct | not attempted | 2,372,830selected answer correct |
| | Expensesselected answer correct | not attempted | 8,830selected answer correct |
| | | | |
| 15. The tax anticipation note of $580,000 was repaid. Interest totaled $10,800. |
| 15 | General Fund | Tax Anticipation Notes Payableselected answer correct | 580,000selected answer correct | not attempted |
| | Expendituresselected answer correct | 10,800selected answer correct | not attempted |
| | Cashselected answer correct | not attempted | 590,800selected answer correct |
| | | | |
| Governmental Activities | Tax Anticipation Notes Payableselected answer correct | 580,000selected answer correct | not attempted |
| | Expensesselected answer correct | 10,800selected answer correct | not attempted |
| | Cashselected answer correct | not attempted | 590,800selected answer correct |
| | | | |
| 16. A transfer of $172,000 was made to establish a special revenue fund to account for expenditures related to a federal grant. |
| 16 | General Fund | Other Financing usesInterfund Transfers Outselected answer correct | 172,000selected answer correct | not attempted |
| | Cashselected answer correct | not attempted | 172,000selected answer correct |
| | | | |
| Governmental Activities | No Journal Entry Requiredselected answer correct | not attempted | not attempted |
| | not attempted | not attempted | not attempted |
| | | | |
| 17. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivable and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. |
| 17a | General Fund | Record the reclassification of the unpaid property taxes of current year. |
| | Taxes ReceivableDelinquentselected answer correct | 205,000selected answer correct | not attempted |
| | Taxes ReceivableCurrentselected answer correct | not attempted | 205,000selected answer correct |
| | | | |
| 17b | | Record the reclassification of the related allowance for estimated uncollectible property taxes of current year. |
| | Allowance for Uncollectible Current Taxesselected answer correct | 45,900selected answer correct | not attempted |
| | Allowance for Uncollectible Delinquent Taxesselected answer correct | not attempted | 45,900selected answer correct |
| | | | |
| 17c | | Record the reclassification of the property tax revenue of current year. | | |
| | Revenues | | 191,408 answer incorrect |
| | Deferred Inflows of ResourcesUnavailable Revenue | | 191,408selected answer incorrect |
| | | | |
| 17d | Governmental Activities | Record the reclassification of the unpaid property taxes of current year. |
| | Taxes ReceivableDelinquentselected answer correct | 205,000selected answer correct | not attempted |
| | Taxes ReceivableCurrentselected answer correct | not attempted | 205,000selected answer correct |
| | | | |
| 17e | | Record the reclassification of the related allowance for estimated uncollectible property taxes of current year. |
| | Allowance for Uncollectible Current Taxesselected answer correct | 45,900selected answer correct | not attempted |
| | Allowance for Uncollectible Delinquent Taxesselected answer correct | not attempted | 45,900selected answer correct |
| | | | |
| 17f | | Record the reclassification of the property tax revenue of current year. | | |
| | No Journal Entry Requiredselected answer correct | not attempted | not attempted |
| | not attempted | not attempted | not attempted |
| | | | |
| 18. A physical inventory of materials and supplies at June 30, 2023, showed a total of $20,700. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal.) |
| 18 | General Fund | Inventory of Suppliesselected answer correct | 20,700selected answer incorrect | not attempted |
| | Fund BalanceNonspendableInventory of Suppliesselected answer correct | 20,700 answer incorrect | not attempted |
| | | | |
| Governmental Activities | No Journal Entry Required | | |
