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 1. The village council adopted a badget for general operations during the fiscal year ending June 30, 2016 Revenues were estimated at $400,000. Legal authorizations for expenditures were $394,000. 2. Property taxes were levied for S390.000 It was estimated that 2% of this amount would prove to be uncollectible. These taxes were available on the date of the levy to finance current expenditures 3. During the year, a resident of the village donated mar ketable socurities, valued at $50,000, to the village t 1 is to be kept intact. The use of revenue generated by the securities is to be restricted to financing college scholarships for needy students. Revenue earned and received on these marketable socurities amounted to $5,500 through June 30, 2016 4. A general fund transfer of $5,000 was made to establish an Intra-governmental Service Fund to provide for a permanent investment in inventory 5. The village decided to install lighting in the village park. A special assessment project was authorized to install the lighting at a cost of $75,000. The appropriation was formally recorded. To finance the projoct, $3,000 is to be 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 assessments and the village contributions were collected during the year 7. A contract for $75,000 was let 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 S 1,900. 9. Cash collections recorded by the general fund during the year were as follows: Property taxes Licenses and permits $386,000 7,000 10. The village council decided to build a village hall, at an estimated cost of $500,000, to replace space occupied in rented 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 S 145,000. The old fire truck costing $120,000 was sold for $20,000. Instructions: Prepare jounal 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 earnings 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: (A/CPA adapted) Transaction No. Fund or Amount DebitCredit ccount Group Account Title & Explanation 18-2
