PLEASE ANSWER QUESTION 12-5!!!!
12-5. Simonsen Village is a relatively new community. At the start of the year, the government had no long-term assets or liabilities. In fact, all of the infrastructure (e.g., roads) in the village are owned by the county or state rather than the town. However, the village government has the primary responsibility for putting out fires in the village. Transactions 6 and 7 for Simonsen Village, described in Problem 12- 4, both relate to the towns new fire truck.
Exhibit 12-4 presents January 1, 2018, balances for Simonsen Villages accounts. These balances at the start of the year were the same on both the modified accrual and accrual bases. (Hint: That may not be the case at the end of the year.) Show the beginning balances from Exhibit 12-4 and the transactions from Problem 12-4 in a worksheet format similar to Exhibit 12-3. Show ending balances. Make a separate section for each fund.
(For Reference)
Please Make Answers look like this:
12-4. See Exhibit 12-4 for opening account balances. Record the following financial transactions for Simonsen Village for the fiscal year ending December 31, 2018. Show the impact of the transactions on the fundamental equation of accounting (optional: show journal entries-see Appendix 12-A). Assume that the modified accrual basis is used Capital Projects Fund Debt Service Fund 4,000 General Fund 300,000 Cash Real estate taxes recelvable State grants recelvablo Due from gonoral Salaries payable Due to dobt service fund 20,000 10,0016,000 0,000 16,000 Exhibit 12-4 Fundbaanced nat ut 224,0020,000 1. Simonsen Village has employees who earned $400,000 for the year. At the end of the year, the salaries payable balance was $10,000. Note that $200,000 of wages related to general government, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department. 2. Inventory was ordered by Simonsen Village. The entire order was received. The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6,000 of the inventory but no payment had been made. The purchases method is used. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education. 3. Simonsen Village's major source of funds is real estate taxes Total tax bills issued were for $300,000. Total collections were the $20,000 from the previous year's ending balance in taxes receivable and $260,000 of this year's taxes. Eighty percent of the outstanding balance at year-end is expected to be collected early in the next fiscal year 4. Simonsen Village is entitled to receive unrestricted grants from the state. During the year, grants in the amount of $100,000 were made. The total collections on grants were just $20,000. This $20,000 consisted of $10,000 that the state owed for the previous year and $10,000 for the current year's grant. The state will be paying the balance owed to Simonsen Village within 30 days after the year ends. 5. During the year, Simonsen Village was legally required to 697 transfer $60,000 to its debt service fund. A total of $70,000 of cash was paid to the debt service fund. In years when the full required transfer is not made, the debt service fund has a receivable (Due From General Fund). If more than the required amount is paid, the debt service fund's receivable declines. 6. Simonsen Village acquired a new fire truck early in the year for $200,000. The fire truck is expected to last 10 years and has no salvage value. It was financed by a long-term note for the full amount. Simonsen Village has a capital projects fund. 7. The interest and principal due on Simonsen Village's debt during the year and paid from the debt service fund were $8,000 and $30,000, respectively. The interest covers all long-term borrowing by Simonsen Village. The principal relates to the fire truck purchased during the year. 5 (Fund Transactions Worksheets)" 7 General Fund Modified Accrual Transactions Analysis Worksheet Liabilities and Fund Balance Fund Balance and Changes in Fund Balance Liabilities Assets Real Estate 10 Due to Debt Deferred tate State 12 Taxes Grantsnts Service Tax SalariesFund 13 Cash Receivable ReceivablePaable Fund Rnue PayableBalance 14 15 Beginning 16 Balance 17 Transaction # 1 18 19 20 Transaction # 2 21 S0 SO General Government Expenditures Education Expenditures Public Works, Safaty & Sanitation Expenditures General Government Expenditures Education Expenditures Public Workes, Safety & Sanitation Expenditures Real Estate Tax Revenues 23 Transaction # 3a 24 Transaction # 3b 25 Transaction # 4a 26 Transaction # 4b 27 | Transaction # 5 28 : Transaction # 6a 29 Transaction # 6b 30 : Transaction # 7 31 Ending Balance 32 State Grant Revenues Transfer to Debt Service Fund 34 Due to the implementation of GASB Statement No. 63 in 2012, the modified accrual transactions analysis worksheet shoPseparately 35 "Deferred Inflows of Resources. Because the new accounting equation for govenments is not introduced untal Chapter 14, however, the solution provided hare is acceptablae. report Deferred Tax Revenues" under 1 Debt Service Fund Liabilities and Fund Balance iesFund Balance and Changes in Fund Balance Assets = Liabilities Due from General Fund Fund Balance 7 Cash Beginning Balance Transaction #1 Transaction # 2 Transaction # 3 Transaction # 4 Transaction # 5 Transaction # 6 Transaction # 7 10 12 13 14 15 16 17 18 19 Transfer from General fund Interest Expenditure Debt Service Principal Expenditure Ending Balance S0 S0 1 Capital Projects Fund 2 Capital Projects Fund 4. Liabilities and Fund Balance Liabilities Fund Balance and Changes in Fund Balance Assets Due from General Fund Fund Balance Cash Beginning Balance Transaction # 1 Transaction # 2 Transaction # 3 Transaction # 4 Transaction # 5 Transaction # 6a Transaction # 6b Transaction # 7 10 11 | | 12 13 14 15 16 17 18 19 20 21 Other Sources of Financing Note Payable Capital Outlay Expenditure Ending Balance 12-4. See Exhibit 12-4 for opening account balances. Record the following financial transactions for Simonsen Village for the fiscal year ending December 31, 2018. Show the impact of the transactions on the fundamental equation of accounting (optional: show journal entries-see Appendix 12-A). Assume that the modified accrual basis is used Capital Projects Fund Debt Service Fund 4,000 General Fund 300,000 Cash Real estate taxes recelvable State grants recelvablo Due from gonoral Salaries payable Due to dobt service fund 20,000 10,0016,000 0,000 16,000 Exhibit 12-4 Fundbaanced nat ut 224,0020,000 1. Simonsen Village has employees who earned $400,000 for the year. At the end of the year, the salaries payable balance was $10,000. Note that $200,000 of wages related to general government, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department. 2. Inventory was ordered by Simonsen Village. The entire order was received. The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6,000 of the inventory but no payment had been made. The purchases method is used. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education. 3. Simonsen Village's major source of funds is real estate taxes Total tax bills issued were for $300,000. Total collections were the $20,000 from the previous year's ending balance in taxes receivable and $260,000 of this year's taxes. Eighty percent of the outstanding balance at year-end is expected to be collected early in the next fiscal year 4. Simonsen Village is entitled to receive unrestricted grants from the state. During the year, grants in the amount of $100,000 were made. The total collections on grants were just $20,000. This $20,000 consisted of $10,000 that the state owed for the previous year and $10,000 for the current year's grant. The state will be paying the balance owed to Simonsen Village within 30 days after the year ends. 5. During the year, Simonsen Village was legally required to 697 transfer $60,000 to its debt service fund. A total of $70,000 of cash was paid to the debt service fund. In years when the full required transfer is not made, the debt service fund has a receivable (Due From General Fund). If more than the required amount is paid, the debt service fund's receivable declines. 6. Simonsen Village acquired a new fire truck early in the year for $200,000. The fire truck is expected to last 10 years and has no salvage value. It was financed by a long-term note for the full amount. Simonsen Village has a capital projects fund. 7. The interest and principal due on Simonsen Village's debt during the year and paid from the debt service fund were $8,000 and $30,000, respectively. The interest covers all long-term borrowing by Simonsen Village. The principal relates to the fire truck purchased during the year. 5 (Fund Transactions Worksheets)" 7 General Fund Modified Accrual Transactions Analysis Worksheet Liabilities and Fund Balance Fund Balance and Changes in Fund Balance Liabilities Assets Real Estate 10 Due to Debt Deferred tate State 12 Taxes Grantsnts Service Tax SalariesFund 13 Cash Receivable ReceivablePaable Fund Rnue PayableBalance 14 15 Beginning 16 Balance 17 Transaction # 1 18 19 20 Transaction # 2 21 S0 SO General Government Expenditures Education Expenditures Public Works, Safaty & Sanitation Expenditures General Government Expenditures Education Expenditures Public Workes, Safety & Sanitation Expenditures Real Estate Tax Revenues 23 Transaction # 3a 24 Transaction # 3b 25 Transaction # 4a 26 Transaction # 4b 27 | Transaction # 5 28 : Transaction # 6a 29 Transaction # 6b 30 : Transaction # 7 31 Ending Balance 32 State Grant Revenues Transfer to Debt Service Fund 34 Due to the implementation of GASB Statement No. 63 in 2012, the modified accrual transactions analysis worksheet shoPseparately 35 "Deferred Inflows of Resources. Because the new accounting equation for govenments is not introduced untal Chapter 14, however, the solution provided hare is acceptablae. report Deferred Tax Revenues" under 1 Debt Service Fund Liabilities and Fund Balance iesFund Balance and Changes in Fund Balance Assets = Liabilities Due from General Fund Fund Balance 7 Cash Beginning Balance Transaction #1 Transaction # 2 Transaction # 3 Transaction # 4 Transaction # 5 Transaction # 6 Transaction # 7 10 12 13 14 15 16 17 18 19 Transfer from General fund Interest Expenditure Debt Service Principal Expenditure Ending Balance S0 S0 1 Capital Projects Fund 2 Capital Projects Fund 4. Liabilities and Fund Balance Liabilities Fund Balance and Changes in Fund Balance Assets Due from General Fund Fund Balance Cash Beginning Balance Transaction # 1 Transaction # 2 Transaction # 3 Transaction # 4 Transaction # 5 Transaction # 6a Transaction # 6b Transaction # 7 10 11 | | 12 13 14 15 16 17 18 19 20 21 Other Sources of Financing Note Payable Capital Outlay Expenditure Ending Balance
