Question 36

General Fund Entries and Financial Statements

The Town of Amherst, NY finances its operations from revenues collected from property taxes, waste management fees, municipal court fines, and interest on investments. Amherst maintains only a general fund. The following information is available for the year ended December 31, 2013.

1. Following is the general fund trial balance on January 1, 2013:

	Dr (Cr)
Investments	$6,000,000
Cash	3,500,000
Waste management supplies	380,000
Accounts receivable-waste management	400,000
Fund balance-nonspendable	(380,000)
Fund balance-unassigned	(9,900,000)
Total	$0

2. The budget for 2013, adopted by the town board, follows:

Property taxes	$2,700,000
Waste management costs	6,700,000
Court costs	1,150,000
Waste management revenues	3,500,000
Court fines	1,000,000
Salaries and operating expenditures	750,000
Investment income	250,000
Supplies expenditures	350,000
Miscellaneous expenditures	150,000

3. All property taxes were collected in cash. Waste management costs, all paid in cash, were $6,680,000. Court costs, all paid in cash, were $1,120,000. 4. Waste management revenues billed during the year: $3,600,000. All outstanding waste management bills on January 1, 2013, were collected during 2013. All 2013 billings were paid with the exception of $210,000 which were mailed to customers the last week of the year. 5. Court fines all collected in cash were $920,000. Salaries and operating expenditures, all paid in cash, were $745,000. Investment income accumulating in the investments account until investments mature: $235,000. No investments matured in 2013. 6. Miscellaneous expenditures, all paid in cash, were $149,000. 7. Waste management supplies on hand at year-end were $40,000. The town uses the consumption method to report supplies.

For all numerical answers, enter all zeros - do not abbreviate to millions or thousands. a. Prepare 2013 journal entries to record the above events and to close the books for the year.

b. Prepare a statement of revenues, expenditures, and changes in fund balances for 2013 and the balance sheet at December 31, 2013, for Amherst's general fund.

Use a negative sign with your answer for excess of revenues over (under) expenditures, if "under" applies. Otherwise, do not use negative signs with your answers.

Town of Amherst General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended December 31, 2013
Revenues:
Property taxes	Answer
Waste management service	Answer
Court fines	Answer
Interest	Answer
	Answer
Expenditures:
Waste management department	Answer
Court costs	Answer
Salaries and operating expenditures	Answer
Supplies	Answer
Miscellaneous	Answer
Total expenditures	Answer
Excess of revenues over (under) expenditures	Answer
Fund balance -- January 1, 2013	Answer
Fund balance -- December 31, 2013	Answer

General Fund Journal \begin{tabular}{|l|} \hline Estimated revenues \\ \hline To record 2013 budget. \\ \hline \end{tabular} To record 2013 budget. To accrue taxes receivable. \begin{tabular}{l} To accrue taxes receivable. \\ \hline To record collection of property taxes. \\ \hline \end{tabular} \begin{tabular}{l} To record collection of property taxes. \\ \hline To record expenditures for waste management. \\ \hline \end{tabular} \begin{tabular}{l} To record expenditures for waste mana \\ \hline To record expenditures for court costs. \\ \hline \end{tabular} \begin{tabular}{l} To record expenditures for court costs. \\ \hline To record receipt of payment on 2012 waste management bills. \\ \hline Cash \\ \hline \end{tabular} Cash To record revenues from waste management. \begin{tabular}{l} To recoro revenues from waste mana \\ To record revenues from court fines. \\ \hline \end{tabular} \begin{tabular}{l} To record revenues from court fines. \\ \hline To record salaries and operating expenditures. \\ \hline \end{tabular} \begin{tabular}{l} To record salaries and operating expenditures \\ To record interest revenue from investments \\ \hline \end{tabular}