Question
Post the following to T-Accounts. The City of Watertown is beginning its first year of operations. The citys first fiscal budget has been approved, and
Post the following to T-Accounts.
The City of Watertown is beginning its first year of operations. The citys first fiscal budget has been approved, and the following data pertaining to the General Fund are available:
1. Estimated revenues for the year are $600,000. Appropriations are $590,000.
2. Property taxes of $400,000 are levied. It is estimated that 3 percent ($12,000) will not be collected.
3. Other revenues of $10,000 meet the criteria for accrual. Estimated uncollectible revenues amount to $400.
4. An order was placed for supplies for the police department in the amount of $3,000. When the supplies were received, the invoice amounted to $3,050 which included freight charges.
5. Payroll costs of $40,000 were vouchered.
6. Cash collections amounted to $350,000 for property taxes levied and $5,000 of previously accrued revenues for a total of $355,000.
7. Uncollected property taxes are now delinquent.
8. Self-assessed taxes, license fees, and fines were collected, amounting to $205,000.
9. The bill for the supplies order in (4) above, was paid.
10. Miscellaneous supplies were ordered from various vendors. The total amount of the orders amounts to $30,000.
11. Invoices were received for the items ordered in 10 above, amounting to $20,000. There were no differences between the respective purchase orders and the invoices.
12. Taxes were collected in advance in the amount of $800.
13. Delinquent taxes of $8,000 are uncollectible and are to be written off.
14. Delinquent taxes of $12,000 and $800 of interest and penalties were collected. The interest has not yet been accrued.
15. Interest and penalties on delinquent taxes amount to $4,000. This is in addition to the amount in 14 above. Uncollectible interest is estimated at $300.
16. Other expenditures during the year amount to $420,000. For purposes of this discussion, these expenditures are paid without vouchering them.
17. The Internal Service Fund furnished the fire department with $2,000 of operating supplies.
18. Interest and principal paid to the Debt Service Fund amounted to $99,000.
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