See Exhibit 12-3 for opening Account balances. Record the following financial transaction in Journal entry Form. Show the effect on the fundamental accounting equation. (assets=LIB+SE)

11:00 V = Q Aa | FINANCIAL MANAGEMENT FOR PUBLIC, H... tion, Questions for Discussion ual ment. 2. Invent Villag The b was $ 12-1. What are the fund categories used by governments? Discuss 12-2. What are the benefits of budgetary accounting? What is the difference be tween appropriations, expenditures, and encumbrances 12-3. How does modified accrual account ing differ from cash and accrual account ing? tory, L Each Problems 3. Simon funds bulls is collect the per taxes rust 12-4. See Exhibit 12-3 for opening account balances. Record the following financial transactions for Simonsen Village for the fiscal year ending December 31, 2021. Show the impact of the transactions on the fundamental equation of accounting (op- tional show journal entriessee Appen- dix 12-A). Assume that the modified ac crual basis is used 1. Simonsen Village has employees who earned $400,000 for the year. At the end of the year, the salaries pay able balance was $10,000. Note that $200,000 of wages related to general government, $140,000 was for educa- standi pected fiscal 4. Simon unrest Durin of $10 lection Back to 552 Page 454 of 612 - 77% 343 552 Result 1 of 6 > 11:00 VE Q Aa | FINANCIAL MANAGEMENT FOR PUBLIC, H... O tion, and $60,000 was for the public works, safety, and sanitation depart- ment. 2. Inventory was ordered by Simonsen Village The entire order was received The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6.000 of the inven tory, but no payment had been made Each of the three departments had used $2,000 of inventory. The remain- ing inventory was all earmarked for education 3. Simonsen Village's major source of funds is real estate taxes. Total tax bills issued were for $300,000. Total collections were the $20,000 from the previous year's ending balance in taxes receivable and $260,000 of this year's taxes. Eighty percent of the out- standing balance at year-end is ex- pected to be collected early in the next fiscal year 4. Simonsen Village is entitled to receive unrestricted grants from the state. During the year, grants in the amount of $100,000 were made. The total col- lections on grants were just $20,000 This $20,000 consisted of $10,000 that the state owed for the previ ous year and $10,000 for the current year's gr the balar within 3 5. During legally to its de $70,000 servicef: quired to service from Ger required vice fund 6. Simonse truck ea! The fire years and financed full amo capital p 7. The inte Simonse year and vice fun respectiv long-tere Village fire truc ans Back to 552 Page 454 of 612 - 77% 343 552 Result 1 of 6 > 11:00 V = Q Aa | FINANCIAL MANAGEMENT FOR PUBLIC, H... O blic art- asen ved abilities. I roads) in county or ever, the mary resp in the vill Simonsen 12-4, both truck scal en- ade. had for tax Total year's grant. The state will be paying the balance owed to Simonsen Village within 30 days after the year ends. 5. During the year, Simonsen Village was legally required to transfer $60,000 to its debt service fund. A total of $70,000 of cash was paid to the debt service fund. In years when the full re- quired transfer is not made, the debt service fund has a receivable (Due from General Fund). If more than the required amount is paid, the debt ser- vice fund's receivable declines. 6. Simonsen Village acquired a new fire truck early in the year for $200,000 The fire truck is expected to last 10 years and has no salvage value. It was financed by a long-term note for the full amount. Simonsen Village has a capital projects fund 7. The interest and principal due on Simonsen Village's debt during the year and paid from the debt ser vice fund were $8,000 and $30,000, respectively. The interest covers all long-term borrowing by Simonsen Village. The principal relates to the fire truck purchased during the year. 12-5. Simonsen Village is a relatively new community. At the start of the year, the government had no long-term assets or li- Exhibit 12 balances fe These bala were the crual and not be the Show the 12 and 12-4 in a Exhibit 12 a separate this bext Exhibit eive col- 000 000 evi- tent Back to 552 Page 454 of 612 - 77% 343 552 Result 1 of 6 > Exhibit 12-3 Capital Projects Fund General Fund $300,000 20,000 Debt Service Fund $ 4,000 Cash Real estate taxes receivable 10,000 State grants receivable Due from general fund 16,000 Salaries payable 90,000 Due to debt service fund 16,000 Fund balance/unrestricted net assets 224,000 20,000 11:00 V = Q Aa | FINANCIAL MANAGEMENT FOR PUBLIC, H... tion, Questions for Discussion ual ment. 2. Invent Villag The b was $ 12-1. What are the fund categories used by governments? Discuss 12-2. What are the benefits of budgetary accounting? What is the difference be tween appropriations, expenditures, and encumbrances 12-3. How does modified accrual account ing differ from cash and accrual account ing? tory, L Each Problems 3. Simon funds bulls is collect the per taxes rust 12-4. See Exhibit 12-3 for opening account balances. Record the following financial transactions for Simonsen Village for the fiscal year ending December 31, 2021. Show the impact of the transactions on the fundamental equation of accounting (op- tional show journal entriessee Appen- dix 12-A). Assume that the modified ac crual basis is used 1. Simonsen Village has employees who earned $400,000 for the year. At the end of the year, the salaries pay able balance was $10,000. Note that $200,000 of wages related to general government, $140,000 was for educa- standi pected fiscal 4. Simon unrest Durin of $10 lection Back to 552 Page 454 of 612 - 77% 343 552 Result 1 of 6 > 11:00 VE Q Aa | FINANCIAL MANAGEMENT FOR PUBLIC, H... O tion, and $60,000 was for the public works, safety, and sanitation depart- ment. 2. Inventory was ordered by Simonsen Village The entire order was received The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6.000 of the inven tory, but no payment had been made Each of the three departments had used $2,000 of inventory. The remain- ing inventory was all earmarked for education 3. Simonsen Village's major source of funds is real estate taxes. Total tax bills issued were for $300,000. Total collections were the $20,000 from the previous year's ending balance in taxes receivable and $260,000 of this year's taxes. Eighty percent of the out- standing balance at year-end is ex- pected to be collected early in the next fiscal year 4. Simonsen Village is entitled to receive unrestricted grants from the state. During the year, grants in the amount of $100,000 were made. The total col- lections on grants were just $20,000 This $20,000 consisted of $10,000 that the state owed for the previ ous year and $10,000 for the current year's gr the balar within 3 5. During legally to its de $70,000 servicef: quired to service from Ger required vice fund 6. Simonse truck ea! The fire years and financed full amo capital p 7. The inte Simonse year and vice fun respectiv long-tere Village fire truc ans Back to 552 Page 454 of 612 - 77% 343 552 Result 1 of 6 > 11:00 V = Q Aa | FINANCIAL MANAGEMENT FOR PUBLIC, H... O blic art- asen ved abilities. I roads) in county or ever, the mary resp in the vill Simonsen 12-4, both truck scal en- ade. had for tax Total year's grant. The state will be paying the balance owed to Simonsen Village within 30 days after the year ends. 5. During the year, Simonsen Village was legally required to transfer $60,000 to its debt service fund. A total of $70,000 of cash was paid to the debt service fund. In years when the full re- quired transfer is not made, the debt service fund has a receivable (Due from General Fund). If more than the required amount is paid, the debt ser- vice fund's receivable declines. 6. Simonsen Village acquired a new fire truck early in the year for $200,000 The fire truck is expected to last 10 years and has no salvage value. It was financed by a long-term note for the full amount. Simonsen Village has a capital projects fund 7. The interest and principal due on Simonsen Village's debt during the year and paid from the debt ser vice fund were $8,000 and $30,000, respectively. The interest covers all long-term borrowing by Simonsen Village. The principal relates to the fire truck purchased during the year. 12-5. Simonsen Village is a relatively new community. At the start of the year, the government had no long-term assets or li- Exhibit 12 balances fe These bala were the crual and not be the Show the 12 and 12-4 in a Exhibit 12 a separate this bext Exhibit eive col- 000 000 evi- tent Back to 552 Page 454 of 612 - 77% 343 552 Result 1 of 6 > Exhibit 12-3 Capital Projects Fund General Fund $300,000 20,000 Debt Service Fund $ 4,000 Cash Real estate taxes receivable 10,000 State grants receivable Due from general fund 16,000 Salaries payable 90,000 Due to debt service fund 16,000 Fund balance/unrestricted net assets 224,000 20,000