The City of Castleton?s General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year:

	Debits				Credits
Cash	$	464,000
Taxes Receivable?Delinquent		595,000
Allowance for Uncollectible Delinquent Taxes					$	177,120
Interest and Penalties Receivable		27,480
Allowance for Uncollectible Interest and Penalties						12,360
Inventory of Supplies		17,300
Vouchers Payable						160,500
Due to Federal Government						71,490
Deferred Inflows of Resources?Unavailable Revenues						433,000
Fund Balance?Nonspendable?Inventory of Supplies						17,300
Fund Balance?Unassigned						232,010
	$	1,103,780			$	1,103,780

1. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020.

2. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts.

3. Prepare a General Fund balance sheet as of June 30, 2020.

4. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare government-wide financial statements.

?

Fund/ Governmental Activties General Journal 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,380,000 and appropriations totaling $3,328,000. 1 General Fund Transaction Governmental Activities 2. The city council authorized temporary borrowing of $540,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 5 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). 2 General Fund Governmental Activities 5a 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $42,100,000, and the tax rate was $6 per $100. It was estimated that 2 percent of the levy would be uncollectible. 3 General Fund Governmental Activities 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,180,000. General Fund 4 Debit Governmental Activities Credit 5. $2,242,000 of current taxes, $395,270 of delinquent taxes, and $21,770 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. General Fund Record the $2,242,000 of current taxes, $395,270 of delinquent taxes, and $21,770 of interest and penalties collected. 5. $2,242,000 of current taxes, $395,270 of delinquent taxes, and $21,770 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 5a 5b 5c 5d General Fund Governmental Activities Governmental Activities Record the $2,242,000 of current taxes, $395,270 of delinquent taxes, and $21,770 of interest and penalties collected. Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Governmental Activities Record the $2,242,000 of current taxes, $395,270 of delinquent taxes, and $21,770 of interest and penalties collected. 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $39,640, of which 30 percent was estimated to be uncollectible. General Fund 6 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. 7. Because of a change in state law, the city was notified that it will receive $104,000 less in intergovernmental revenues than was budgeted. General Fund 7 8. Delinquent taxes of $13,505 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. 8 General Fund 8. Delinquent taxes of $13,505 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. General Fund 8 Governmental Activities 9. Total payroll during the year was $939,490. Of that amount, $74,690 was withheld for employees' FICA tax liability, $115,710 for employees' federal income tax liability, and $35,600 for state taxes; the balance was paid to employees in cash. 9 General Fund Governmental Activities 10. The employer's FICA tax liability was recorded for $74,690. 10 General Fund Governmental Activities 11. Revenues from sources other than taxes were collected in the amount of $959,000. General Fund 11 Governmental Activities 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund Governmental Activities 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund 13. Purchase orders and contracts encumbered in the amount of $2,108,040 were filled at a net cost of $2,107,570, which was vouchered. General Fund Record the encumbrances outstanding for 2020. 13a 13b 13c Governmental Activities Governmental Activities Record the total expenses against vouchers payable for 2020. 14. Vouchers payable totaling $2,421,660 were paid after deducting a credit for purchases discount of $9,230 (credit Expenditures). General Fund 14 16h Record the total expenditures against vouchers payable for 2020. Governmental Activities 15. The tax anticipation note of $540,000 was repaid. 15 General Fund Governmental Activities 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund Record the delinquent amount of unpaid property taxes. Record the adjustment for the delinquent amount of tax against the allowanCA 15. The tax anticipation note of $540,000 was repaid. 15 General Fund 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund Record the delinquent amount of unpaid property taxes. 16b 16c 16d 16e Governmental Activities 16f Record the adjustment for the delinquent amount of tax against the allowance. Record the deferred inflow of resource Governmental Activities Record the delinquent amount of unpaid property taxes. Governmental Activities Record the adjustment for the delinquent amount of tax against the allowance. Record the deferred inflow of resource 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $21,500. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the govemmental activities journal. Recorded entry to reclassify the fund balance.) 17 General Fund Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. D governmental activities accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the field. Do not round intermediate calculations.) Transactions Fund 1. Record the closure of budgetary statements account. 1 General Fund 2. Record the closure of operating statements account. 2 General Fund General Journal Debit Credit Prepare a General Fund balance sheet as of June 30, 2020. CITY OF CASTLETON General Fund Balance Sheet As of June 30, 2020 Assets Cash Taxes Receivable-Delinquent Less: Allowance for Uncollectible Taxes-Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities: Liabilities and Fund Balances Vouchers Payable Deferred Inflows of Resources-Unavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances: Nonspendable Inventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances 0 0 0 0 0 0