Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE PROVIDE ANSWER TO ATTACHED FILE As of January 1, 2015, the City Council approved and the mayor signed a budget calling for $11,250,000 in
PLEASE PROVIDE ANSWER TO ATTACHED FILE
As of January 1, 2015, the City Council approved and the mayor signed a budget calling for $11,250,000 in property tax and other revenue, $9,300,000 in appropriations for expenditures, and $1,700,000 to be transferred to two debt service funds for the payment of principal and interest. Record the budget using budgetary accounts for the General Fund and post to the ledger.
ACCT 219 - Assignment No. 1 This accounting scenario assumes the City of Leesburg government is using fund accounting for its internal record-keeping and then at year-end makes necessary adjustments to prepare the government-wide statements. This scenario affects the General Fund and their fiscal year 2015. Use control accounts for the budgetary accounts, revenues, expenditures and encumbrances - see Excel file for templates and prepare the requested financial statements. The Balance Sheets of the General Fund as of December 31, 2014, follow. These (beginning) balances have been entered in the proper general ledger accounts, as of 1/1/2015. CITY OF LEESBURG General Fund Balance Sheet As of December 31, 2014 Assets Cash $502,000 Taxes receivable $210,000 Less: Estimated uncollectible taxes (42,000) net 168,000 Interest and penalties receivable on taxes 5,200 Less: Estimated uncollectible interest and penalties (950) net 4,250 Due from state government 210,000 Total assets $884,250 Liabilities, Deferred Inflows, and Fund Equity Liabilities: Accounts payable $ 99,000 Due to other funds 27,000 Total liabilities 126,000 Deferred inflows - Property taxes Fund equity: Fund balanceassigned (for outstanding encumbrances) Fund balanceunassigned Total fund balance Total liabilities, deferred inflows and fund equity 1 21,000 $17,000 720,250 737,250 $884,250 Required: 1. a. As of January 1, 2015, the City Council approved and the mayor signed a budget calling for $11,250,000 in property tax and other revenue, $9,300,000 in appropriations for expenditures, and $1,700,000 to be transferred to two debt service funds for the payment of principal and interest. Record the budget using budgetary accounts for the General Fund and post to the ledger. 2. a. Record journal entries for the following transactions for FY 2015. Make any computations to the nearest dollar. Journal entry explanations are not required. Use control accounts for revenues, expenditures and budgetary accounts. It is not necessary to reflect subsidiary ledger entries. (1) Encumbrances of $ 17,000 for purchase orders outstanding at the end of 2014 were re-established. (2) The January 1, 2015, balance in Deferred Inflows - Property Taxes relates to the amount of the 2014 levy that was expected to be collected more than 60 days after December 31. This amount should be recognized as 2015 revenues. (3) A general tax levy in the amount of $6,800,000 was made. It is estimated that 2 percent of the tax will be uncollectible. (4) Goods and supplies related to all encumbrances outstanding as of December 31, 2014 were received (see item 1 above), along with invoices amounting to $16,600; the invoices were approved for payment. (5) All existing accounts payable balances and the amount due to other funds were paid. (6) The General Fund collected the following ($ 10,811,500) in cash: o o o o o o o prior year taxes, $158,000; interest and penalties receivable on prior year taxes, $3,500; current taxes, $6,400,000; $210,000 previously recorded as due from the state government; licenses and permits, $800,000; sales taxes, $2,890,000; and miscellaneous revenues, $350,000. (8) Purchase orders and contracts were issued in the amount of $3,465,000. (9) Payroll for town employees within the General Fund totaled $5,070,000. The encumbrance system is not used for payrolls, and this amount was paid. (10) Invoices for most of the supplies and services ordered in transaction 8 were received in the amount of $3,000,000 and the invoices in that amount were approved for payment. The remaining $465,000 remains encumbered. 2 b. Post the entries to the general ledger and track balances in T-accounts. c. Prepare and post the closing entries for the General Fund. Outstanding encumbrances at year end are classified as Assigned Fund Balance and all remaining net resources are classified as Unassigned Fund Balance. d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ended December 31, 2015. e. Prepare in good form a Balance Sheet for the General Fund as of the end of fiscal year, December 31, 2015. 3
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started