Question
REQUIRED: Prepare journal entries in general journal format to record the following transactions for the 2020 fiscal year for the City of Portage General Fund
REQUIRED: Prepare journal entries in general journal format to record the following transactions for the 2020 fiscal year for the City of Portage General Fund (Subsidiary detail may be omitted.).
- The budget prepared for the fiscal year included estimated revenues of $3,774,000, appropriations of $3,695,000 and estimated other financing uses of $35,000.
- Purchase orders in the amount of $838,000 were mailed to vendors.
- The current years tax levy of $3,005,000 was recorded; uncollectibles taxes were estimated to be 2% of the tax levy.
- Collections of the current years levy totaled $2,829,000
- Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in transaction (2) of this problem. The estimated liability was $751,200. Actual costs were $750,500.
- Revenue other than taxes collected during the year consisted of licenses and permits, $73,000; intergovernmental revenue, $200,000; and $36,000 of miscellaneous revenues.
- Goods for which encumbrances were outstanding at the end of 2019 were received in 2020 at a total invoice cost of $35,450. The estimated amount for these goods was $35,000. The invoices were approved for payment.
- Taxpayers have paid delinquent taxes totaling $103,665, on which interest and penalties of $3,400 had been recorded as receivable at the end of 2019. Additional interest of $200 was received (which had not been recorded) for the period from the first day of 2020 to the dates on which the delinquent taxes were paid.
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The treasurer approved the write-off of delinquent taxes totaling $2,700 and related interest and penalties of $675
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Due to fiscal issues the government determined that the budget should be legally amended to reflect a decrease in General Fund appropriations of $34,000.
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The government uses a periodic inventory system for the supplies inventory. Supplies on hand on January 1, 2020 amounted to $45,000, supplies purchased during 2020 were $235,000 and physical inventory determined that supplies on hand at December 31,2020 amounted to $30,000. The city uses purchases method to account for supplies inventory.
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