The 1/1/2017 beginning trial balance for the City of Fairways is below:

Debits

Credits

Cash

$60,000

Taxes Receivable- Delinquent

200,000

Allowance- delinquent taxes

$50,000

Supplies Inventory

25,000

Accounts Payable

55,000

Deferred Revenue

45,000

Due to Other Funds

10,000

Nonspendable Fund Balance

25,000

Fund Balance

100,000

TOTAL

$285,000

$285,000

The following transactions took place for the City of Fairways for the fiscal year ending 12/31/2017.

1.The following budget was approved for FY ending 12/31/17. Budget each item separately:

Estimated Tax Collections:$ 7,500,000

Estimated Grant: 500,000

Estimated Expenditures-Current: 4,700,000

Estimated Transfers to other funds:200,000

2.The 1/1/2017 amount in the "Deferred Revenues" account relates to property taxes levied in 2010, but expected to be collected between March and December of 2017.

3.Taxes of $6,300,000 were levied for the year.5% is considered uncollectible.The collections of current taxes during the year equal 90% of the levy. (2 Entries)

4.Notification of an operating grant award amounting to $425,000 is received. The grant is from the Department of Housing and Urban Development for removal of lead based paint in low income housing. It is a reimbursement grant.

5.$120,000 in delinquent taxes and $3,000 in related interest and penalties are collected. Interest and penalties were not previously accrued.

6.2017 Purchase orders # 102 - 243 are issued for current operating goods and services valued at $3,900,000.

7.a) 2017 Purchase orders #115 and #203 from above totaling $125,000 are still outstanding.The remainder of goods and services are received, along with invoices totaling $3,700,000 for routine operating items. b) 80% of the invoices are paid.

8.A public park land with a basis of $25,000 is sold for $100,000 to commercial developers.The city considers the transaction significant and infrequent.

9.Salaries (not previously encumbered) totaling $850,000 were paid during the year.

10. The following budget amendment occurred:

Estimated Expenditures-Current increased by: $45,000

Estimated Grant decreased by $75,000

11. $200,000 was transferred to the DSF for a serial bond payment.

12. The Motor Pool Internal Service Fund bills the GF $120,000 for vehicle usage. 75% of the invoice is remitted.

13. The GF loans the CPF $50,000 on a short-term basis.The amount will be repaid by the CPF when bonds are issued.

14. The city incurs and pays $375,000 for removing of lead based paint in low income housing projects. Collection of the reimbursement is expected in January of 2012.

15. Reclassify current taxes (and the related allowance) to delinquent. Adjust the Delinquent Allowance account to 40% of the gross delinquent tax receivable.

16. 20% of the gross Taxes Receivable: Delinquent are expected to be collected after March 1, 2012.

17. A physical count of the supplies inventory indicated a balance on hand of $15,000. Adjust appropriate accounts assuming that the consumption method is used.

18. Near year-end a restricted gift of $100,000 is received by the city to fund a food bank operated by the city's general fund. No funds have been disbursed as of year-end. This is a non-mandatory, non-exchange event.

Requirements (to be done in Excel except for requirement #2):

1. Prepare the journal entries for the above events.
2. Post journal entries to T-accounts.
3. Prepare a preclosing trial balance.
4. Prepare the following financial statements for 2017:

Budgetary Comparison Schedule

Balance Sheet with appropriate allocation of Fund Balance ( make sure you consider the effect of JE #18)

1. Prepare closing journal entries.