Question 35 in "The city council of Rapid City approved the following budgets for fiscal 2021:... Please show how answer was derived. I want to know how to set up journal entries for this question. Thank you

The city council of Rapid City approved the following budgets for fiscal 2021: General Fund: Estimated Revenues Property Taxes $9,197,000 Sales Taxes 3,313,000 Intergovernmental Grants 1,089,550 Licensing Fees and Fines 173,800 Total Estimated Revenues Appropriations Food Inspection Program $2,513,000 Salaries Food Inspection Program 8,297,000 Supplies Other Programs 869,000 Other Program Costs 685,000 Transfer to Debt Service Fund 135,000 Total Appropriations Budgeted Change in Fund Balance

Capital Projects Fund: Estimated Revenues Intergovernmental Grants $600,000 Investment Income 100,000 Total Estimated Revenues $700,000 Appropriations Park Construction $5,400,000 Park Equipment 660,000 Transfer to Debt Service Fund 50,000 Total Appropriations 6,110,000 Budgeted Change in Fund Balance ($5,410,000)

Debt Service Fund: Estimated Revenues Special Tax Assessment $460,000 Investment Income 4,000 Total Estimated Revenues $464,000

Estimated Other Financing Sources Transfer in From General Fund 135,000 Transfer in From Capital Projects Fund 50,000 Total Estimated Other Financing Sources $185,000 Appropriations Interest $225,000 Principal 280,000 Total Appropriations ( 505,000) Budgeted Change in Fund Balance $144,000

2. The city collected 98% of the delinquent property taxes outstanding at the end of 2020 in the General Fund. The remaining delinquent amount was written off as uncollectible. All of the late payment penalties and interest (100%) were collected. Hint: Remember when writing off (eliminating) uncollectible reserves, revenue is recognized. Originally setting up uncollectible allowance amounts reduced revenue. . 4. The city levied property taxes in the amount of $9,197,000 and established an allowance for uncollectible taxes and discounts equal to 5% of the taxes levied. 5. The city levied the special tax assessment to service the bond issue for the new city park. The city levied $460,000 in anticipation of realizing net cash of $437,000, establishing a $23,000 allowance for uncollectible taxes and discounts. 6. Purchase orders for supplies were placed in the amount of $(869,000 + 10,000). 7. The city entered into two construction contracts for the new city park: (a) Hillside Construction Co. for $4,825,000 and (b) Palmer Engineering for $675,000. 9. The city approved encumbrances of $685,000 for Other program costs. 10. The General Fund transferred the $135,000 to the Debt Service Fund for principle payment on the Capital Project Fund bonds. 15. The city vouchered $675,000 related to the encumbered Other Program Costs. (Journal entry #9) 18. The city received and vouchered invoices totaling 85% of the amount in journal entry #6 for payment. The amount encumbrances related to these invoices total 90% of the amount in journal entry #6 related to Supplies Other Programs. 20. The city paid the previously vouchered invoices related to the Other Program Costs. (journal entry #15) 22. The park equipment ordered in journal entry #19( $700.000) was received and inspected. The city vouchered the invoice amount of $680,000. 23. The city collected 94% of the amount billed for license fees and fines in cash during the year and expects to collect the rest during the first 60 days of 2020. (Refer to journal entry #17) 26. The city paid for the vouchered supplies received earlier (journal entry #18). 27. The city received and vouchered the final invoices for the construction of the city park: (a) Hillside Construction for $4,940,000 and (b) Palmer Engineering for $680,000. 28. All remaining unpaid property taxes were declared delinquent. The city comptroller concluded that an allowance for uncollectible taxes for property taxes should be 5% of the delinquent property taxes. (journal entries #4 and #8) Hint: Creating allowance for uncollectible accounts reduces revenue)

30. After inspection, the city paid Hillside Construction and Palmer Engineering for the previously vouchered invoices (Journal entry #27) 31. The city paid 680,000 of the vouchered park equipment. 32. The remaining project funds in the Capital Project Fund were transferred to the Debt Service Fund. 33. The Debt Service Fund paid the second installment payment plus interest on the bonds issued for the new city park. 34. The physical supplies inventory count at year-end totaled 3% of the budgeted amount for Supplies Other Programs. Encumbrances of $8,000 related to supplies ordered but not received by year end remain open. The purchase orders will be honored against 2022s appropriation. 35. When you complete all of the journal entries and post them to the T-accounts, you will find a few encumbrance accounts still have balances. You "close" these accounts into the Fund Balance as an adjusting entry, before you complete the Trial Balance sheet and before you complete the financial statements.