Problem 5. Various funds and account groups. The village of Dexter was recently incorporated and began financial operations on July 1, 2015, the beginning of its fiscal year. 1. The village council adopted a budget for general operations during the fiscal year ending June 30, 2016, Revenues were estimated at $400,000. Legal authorizations for expenditures were $394,000, es valued at $50,000, to the village under 2. Property taxes were levied $390.000. It was estimated that of this amount would prove uncollectible. These taxes were available on the date of the levy to finance current expand 3. During the year, a resident of the village donated marketable securities valued at $50,000, the terms of a trust agreement. The agreement stipulated that the m a in to be kept intact. The use of revan chcrated by the securities is to be restricted to financine collecholarshins fencedy students. Revenue can and received on these marketsNe securities amounted to 55 500 through June 30, 2016 4. A general fund transfer of 55.000 was made to establish an Intra-governmental Service Fund to prom permanent investment in inventory 3. The village decided to install lighting in the village park A cil assument project was authorized to in the lighting at a cost of $75,000. The appropriation was formally recorded. To finance the project, transferred from the general fund, and the balance is from special assessments 6. Assessments were levied for $72,000, with the village contributing $3,000 from the general fund. All A m ents and the village contributions were collected during the year. 7. A contract for 575.000 waslet for the installation of lighting At June 30, 2016, the contract was completed for $75.000. The contractor was paid all but 5%, which was retained to ensure compliance with the terms of the contract. Encumbrances and other budgetary accounts are maintained 8. During the year, the internal service fund purchased various supplies at a cost of $ 1.500 9. Cash collections recorded by the general fund during the year were as follows Property taxes $386,000 Licenses and permits 7,000 10. The village council decided to build a village hall, at an estimated cost of $500,000, to replace space occupied in renfed facilities. The village does not record project authorizations. It was decided that general obligation bonds bearing interest at 6% would be issued. On June 30, 2016. the bonds were issued at their face value of $500.000, payable in 20 years. No contracts have been signed for this project, and no expenditures have been made 11. A new fire truck was purchased for $ 150,000, and the voucher was approved. Payment was made through the general fund. This expenditure was previously encumbered for $ 145,000. The old fire truck costing S120,000 was sold for $20,000 Instructions: Prepare journal entries to properly record each of the preceding transactions in the appropriate fund(s) or group of accounts of Dexter for the fiscal year ended June 30, 2016. Use the following funds and groups of accounts: a. General fund b. Capital projects fund c. Internal service fund d. Private-purpose principal fund e. Private-purpose camings fund f. General long-term debt account group g. General fixed assets account group Journal entries should be numbered to correspond with the appropriate transactions. Do not prepare closing entries for any fund. Your answer sheet should be organized as follows: (AICPA adapted) Amount Transaction No. Fund or Account Group Account Title & Explanation Debit Credit 11
