Please fill out "The City of Accounting Fun"journey entries.

CHAPTER 3: GOVERNMENTAL OPERATING STATEMENT ACCOUNTS; BUDGETARY ACCOUNTING Assignment The City of Accounting Fun adopted the following general budget for fiscal year 2014: Estimated Revenues: Property Taxes DNR Licenses & Permits E-Pull Tabs $1,525,000 35,000 10 Bar & Restaurant Permits 500,000 Total estimated revenues $2,060,010 Appropriations: General Government Public Safety Public Utilities Total appropriations (Hopefully you pick-up on the humor of this item and what happened in Minnesota) (A very social community) $1,020,000 95,000 850,000 $1,965,000 a. Prepare the general journal entries to record the adopted budget at the beginning of FY 2014. Show the entries in the subsidiary ledger accounts as well as the general ledger accounts. General Ledger Debits General Fund: Estimated Revenues Ledger: Subsidiary Ledger Credits Debits Credits Appropriations Ledger: b. During March 2014, the first month of the 2014 fiscal year, the City of Accounting Fun issued the following purchase orders and contracts: General Government $10,900 Public Safety 5,000 Public Utilities 349,000 Total purchases & contracts $364,900 Show the general journal entry to record the issuance of the purchases orders and contracts. Show entries in the subsidiary ledger accounts as well as the general ledger accounts. General Ledger Debits General Fund: Encumbrances Ledger: Subsidiary Ledger Credits Debits Credits c. During March 2014, the first month of the 2014 fiscal year, the City of Accounting Fun collected the following revenues: Property Taxes DNR Licenses & Permits Bar & Restaurant Permits Total estimated revenues $710,000 1,500 41,500 $753,000 Show the general journal entry to record the cash receipt of the revenue items. Show entries in the subsidiary ledger accounts as well as the general ledger accounts. General Ledger Debits Subsidiary Ledger Credits Debits Credits Revenues Ledger: d. During March 2014, the following purchase orders were received and contracts were completed: General Government Public Safety Public Utilities Total purchases & contracts $10,000 (See comment below) 5,000 350,000 (See comment below) $365,000 General Government: Of the $10,900 encumbrance recorded in (b), $900 is still on backorder. When reversing the encumbrance, remember to leave $900 outstanding. Public Utilities: Of the $349,000 encumbrance recorded in (b), $1,000 was an extra cost for an unforeseen item that wasn't not noticed when the purchase order was prepared. Show the general journal entry to record the removing of the encumbrances filled and expenditures paid for with cash. Show entries in the subsidiary ledger accounts as well as the general ledger accounts. General Ledger Debits Subsidiary Ledger Credits Debits Credits Remove the encumbrances Record the purchase Encumbrances Ledger: Expenditures Ledger: e. Calculate and show in good form the amount of available appropriation in total for each function as of March 31, 2014 Calculation of budgeted but unrealized revenues as of March 31, 2014 Source Budgeted Actual Unrealized Revenue Check number: Unrealized Revenue = $1,307,010 f. Calculate and show in good form the amount of available appropriation in total for each function as of March 31, 2014 Calculation of available appropriations, as of March 31, 2014 Appropriations Encumbrances Expenditures Available Appropriations Check number: Available Appropriations = $1,599,100 6