Question
Please prepare the journal entries and financial statements as governmental fund activities (i.e., fund accounting). Do not prepare or include government-wide activities (i.e., governmental activities).
Please prepare the journal entries and financial statements as governmental fund activities (i.e., fund accounting). Do not prepare or include government-wide activities (i.e., governmental activities).
Requirement Please finish 1-10 journal entries!
Transactions and events occurred during fiscal 2017:
The city council of Rapid City approved the following budgets for fiscal 2017:
General Fund:
Estimated Revenues | |
Property Taxes | $(1,234,000 + 500,000) |
Sales Taxes | (2,234,000 + 200,000) |
Intergovernmental Grants | (35% x 2,234,000) |
Licensing Fees and Fines | (20% x 123,000) |
Total Estimated Revenues | 4974500 |
Appropriations | |
Food Inspection Program | $(2,234,000 600,000) |
Salaries Food Inspection Program | (1,234,000 400,000) |
Supplies Other Programs | 123,000 |
Other Program Costs | 685,000 |
Transfer to Debt Service Fund | 135,000 |
Total Appropriations | 3411000 |
Budgeted Change in Fund Balance |
Capital Projects Fund:
Estimated Revenues | ||
Intergovernmental Grants | $ 600,000 | |
Investment Income | 100,000 | |
Total Estimated Revenues | $ 700,000 | |
Appropriations | ||
Park Construction | $5,400,000 | |
Park Equipment | 660,000 | |
Transfer to Debt Service Fund | 50,000 | |
Total Appropriations | 6,110,000 | |
Budgeted Change in Fund Balance | ($5,410,000) |
Debt Service Fund:
Estimated Revenues | ||
Special Tax Assessment | $ 460,000 | |
Investment Income | 4,000 | |
Total Estimated Revenues | $ 464,000 | |
Estimated Other Financing Sources | ||
Transfer in From General Fund | 135,000 | |
Transfer in From Capital Projects Fund | 50,000 | |
Total Estimated Other Financing Sources | $ 185,000 | |
Appropriations | ||
Interest | $225,000 | |
Principal | 280,000 | |
Total Appropriations | ( 505,000) | |
Budgeted Change in Fund Balance | $ 144,000 |
2. Purchase orders issued but not received by December 31, 2016 were received in January 2017 for $4,000. 3. The city collected 98% of the delinquent property taxes outstanding at the end of 2016 in the General Fund. The remaining delinquent amount was written off as uncollectible. All of the late payment penalties and interest (100%) were collected. Hint: Remember when writing off (eliminating) uncollectible reserves, revenue is recognized. Originally setting up uncollectible allowance amounts reduced revenue. 4. The state paid the amount owed to the city as of December 31, 2016. 5. In January 2017, the Capital Projects Fund invested the bonds issued in December 2016 in a 6-month CD bearing interest at 4.25% per annum. 6. The city paid the amount due to Federal government related to payroll taxes. 7. The city authorized temporary borrowing of $500,000 as a 120-day tax anticipation note. The loan was obtained from a local bank at 6%. (Record only the receipt of the loan at this time.) 8. The city received an advance of 80% of the budgeted intergovernmental grant in the General Fund from the state for the food inspection program. 9. The city levied property taxes at the budgeted amount and established an allowance for uncollectible taxes and discounts equal to 5% of the taxes levied. 10. The city levied the special tax assessment to service the bond issue for the new city park. The city levied $460,000 in anticipation of realizing net cash of $437,000, establishing a $23,000 allowance for uncollectible taxes and discounts.
Rapid City General Fund Postclosing Trial Balance December 31, 2016 Debits Additional Information: 1. Encumbrances lapse if they are outstanding at the close of a fiscal year, however, the city honors all Cash Property Taxes Receivable Deliquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest & Penalties Supplies Inventory Vouchers Payable Due to Federal Government Fund Balance Nonspendable- Supplies Inventory Fund Balance- Assigned Fund Balance - Unassigned S 295,600 57,000 outstanding encumbrances, reported at the end of 2016 are reported as Fund Balance Assigned S 3,500 2. The city uses the purchases method to record the acquisition of supplies. The year-end supplies inventory 4,200 is considered to be material and is reported in the city's financial statements 200 7,700 36,400 2,800 7,700 3,300 310,600 Rapid City General Fund Postclosing Trial Balance December 31, 2016 Debits Additional Information: 1. Encumbrances lapse if they are outstanding at the close of a fiscal year, however, the city honors all Cash Property Taxes Receivable Deliquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest & Penalties Supplies Inventory Vouchers Payable Due to Federal Government Fund Balance Nonspendable- Supplies Inventory Fund Balance- Assigned Fund Balance - Unassigned S 295,600 57,000 outstanding encumbrances, reported at the end of 2016 are reported as Fund Balance Assigned S 3,500 2. The city uses the purchases method to record the acquisition of supplies. The year-end supplies inventory 4,200 is considered to be material and is reported in the city's financial statements 200 7,700 36,400 2,800 7,700 3,300 310,600Step by Step Solution
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