Presented below are a number of transactions for the City of Bingham that occurred

during the $2023$ fiscal year; the year for which the budget given in Chapter $3$ was

recorded. Read all instructions carefully.

a$.$ After opening the data file containing your data from Chapters $2$ and $3$ of this project,

record the following transactions in the general journal for the General Fund and, if

applicable, in the general journal for governmental activities at the government$-$wide

level. For all entries, the date selected should be year $2023.$ For each of the

paragraphs that requires entries in both the General Fund and governmental activities

journals, you can either record them in both journals on a paragraph$-$by$-$paragraph

basis or$,$ alternatively, record all the General Fund journal entries first for all

paragraphs, then complete the governmental activities journal entries for all

paragraphs. If you choose the latter method, it might be useful to print the General

Fund general journal entries to assist in making the entries in the governmental

activities journal. Regardless of the method you choose, we recommend that you

refer to the illustrative journal entries in Chapter $4$ of the Reck, Lowensohn, and

Neely textbook $(19$

th edition$)$ for guidance in making all entries.

For each entry affecting budgetary accounts or operating statement accounts, the

Detail Journal will automatically open to allow you to record the appropriate amounts

in the detail budgetary or actual accounts, as was the case in Chapter $3.$

$1.[$Para$.4$a$-1]$ Property taxes were levied in the amount of $$3,500,000.$ It is

estimated that $1$ percent of the tax will be uncollectible.

Required: Record this transaction in both the General Fund and governmental

activities journal. Record the tax levy as a revenue in both journals; you will

adjust for unavailable revenues at year end. $($Note: Type $4$a$-1$ as the paragraph

number in the $[$Add description$]$ box for this entry; $4$a$-2$ for the next transaction,

etc. Careful referencing by paragraph number is very helpful should you need to

determine where you may have omitted a required journal entry or made an error.$)$

Select $$Accrued Revenue$$ in the drop down $[$Description$]$ menu in the Detail

Journal related to the General Fund entry.

$2.[$Para$.4$a$-2]$ Purchase orders, contracts, and other commitment documents were

issued in the following amounts for the following functions:

General Government $ $695,000$

Public Safety $675,000$

Public Works $615,000$

Culture and Recreation $77,500$

Total $$2,062,500$

Required: Record the encumbrances in the General Fund general journal and

Detail Journal as appropriate. In the Detail Journal, select $$Purchase Orders$$

from the drop down $[$Description$]$ menu.

$3.[$Para$.4$a$-3]$ The General Fund collected the following receivable amounts in

cash:

Current year Property Taxes $$3,395,000$

Delinquent Taxes $120,000$

Interest and Penalties Receivable on Taxes $9,860$

Sales Taxes $319,562$

Licenses and Permits $238,000$

Fines and Forfeits $210,250$

Intergovernmental Revenues $250,000$

Charges for Services $109,500$

Total $$4,652,172$

Required: Record the receipt of cash and the related credits to receivables and

revenues accounts, as applicable, in both the General Fund and governmental

activities journals. $($Select $$Received in Cash$$ in the drop down $[$Description$]$

menu in the Detail Journal related to the General Fund revenue entries.$)$ Sales

taxes exceeding the sales taxes receivable balance should be recorded as revenues.

In addition to the cash collection, remember to recognize revenue in the General

Fund for the full amount of the delinquent taxes and interest and penalties

collected by reducing the deferred inflows of resources balance. These revenues

were not expected to be collected within $60$ days of year end, thus they were not

considered $$available$$ under the modified accrual basis of accounting and were

classified as Deferred Inflows of Resources in the General Fund. Select

$$Previous Deferral$$ in the drop down $[$Description$]$ menu in the Detail Journal.

For governmental activities at the government$-$wide level, all Licenses and

Permits and Charges for Services were attributable to the General Government

function as Program Revenue$-$Charges for Services. Fines and forfeits were

collected by General Government departments in the amount of $$100,000$ and by

Public Safety departments in the amount of $$110,250.$ Intergovernmental

Revenues should be credited to Program Revenues$$General Government$$

Operating Grants and Contributions.

$4.[$Para$.4$a$-4]$ Delinquent taxes receivable in the amount of $$9,000$ were written off as uncollectible. Interest and penalties accrued on these taxes in the amount of

$$1,050$ were also written off.

Required: Record the writeoffs in both the General Fund and governmental

activities general journals