The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2022, the end of its fiscal year: Cash Sales Taxes Receivable Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources-Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned Debits $ 468,000 Credits 25,000 597,000 $ 203,000 27,680 12,560 17,500 162,500 73,490 456,000. 17,500 210,130 $1,135,1801 $1,135,180 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2023. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Complete this question by entering your answers in the tabs below. Required A Required B Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2023. Avoid use of functional details for expenses and itemization of revenue accounts. So, use of account names "Expenses" and "Revenues" will suffice wherever required. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Transaction Fund / Governmental Activities General Journal Debit Credit 1. The budget for FY 2023 provided for General Fund estimated revenues totaling $3,420,000, appropriations totaling $3,140,000, and an other financing use-interfund transfer out of $226,000. 1 General Fund Estimated Revenues Budgetary Fund Balance Appropriations Estimated Other Financing Uses 3,420,000 54,000 3,140,000 226,000 2. The city council authorized temporary borrowing of $480,000 in the form of a 120-day tax anticipation note obtained from a local bank. General Fund and Governmental Activities Cash Tax Anticipation Notes Payable 480,000 480,000 3. The property tax levy for FY 2023 was recorded. Net assessed valuation of taxable property for the year was $48,200,000, and the tax rate was $5 per $100. It was estimated that 2 percent of the levy would be uncollectible. 3 General Fund Taxes Receivable-Current Allowance for Uncollectible Current Taxes Revenues Governmental Activities Taxes Receivable-Current Allowance for Uncollectible Current Taxes Revenues 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,200,000. 4 General Fund Encumbrances Encumbrances Outstanding 2,410,000 48,200 2,361,800 2,410,000 48,200 2,361,800 2,200,000 2,200,000 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,200,000. 4 General Fund Encumbrances Encumbrances Outstanding Governmental Activities Encumbrances Encumbrances Outstanding 2,200,000 2,200,000 2,200,000 2,200,000 5. $2,190,000 of current taxes, $397,270 of delinquent taxes, $21,970 of interest and penalties, and $25,000 of accrued sales taxes were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. General Fund 5b Record the $2,190,000 of current taxes, $397,270 of delinquent taxes, and $21,970 of interest and penalties collected. Cash 2,609,240 Taxes Receivable-Current Taxes Receivable-Delinquent Interest and Penalties Receivable 2,190,000 397,270 21,970 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Record the $2,190,000 of current taxes, $397,270 of delinquent taxes, and $21,970 of interest and penalties collected. 50 Governmental Activities Cash Taxes Receivable-Current Taxes Receivable-Delinquent interest and Penaltine Receivable 2,609,240 2,190,000 397,270 21 970 5d Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $39,840, of which 25 percent was estimated to be uncollectible. 6 General Fund Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Revenues Governmental Activities Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Revenues 39,840 9,960 29,880 39,840 9,960 29,880 7. Because of a change in state law, the city was notified that it will receive $108,000 less in intergovernmental revenues than was budgeted General Fund 7 Governmental Activities 8. Delinquent taxes of $14,192 were deemed uncollectible and written off. The associated interest and penalties of $1,092 also were written off. 8 General Fund Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent hinterest and Penalties Receivable 14,192 1,092 14,192 1.0921 8. Delinquent taxes of $14,192 were deemed uncollectible and written off. The associated interest and penalties of $1,092 also were written off. 8 General Fund Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable Governmental Activities Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 14,192 1,092 14,192 1,092 14,192 1,092 14,192 1,092 9. Total payroll during the year was $959,490. Of that amount, $73,400 was withheld for employees' FICA tax liability, $117,710 for employees' federal income tax liability, and $35,800 for state taxes; the balance was paid to employees in cash. 9 General Fund Expenditures 886,090 Due to Federal Government - 117,710 Due to State Government 35,800 Cash 732,580 Governmental Activities Expenses Due to Federal Government Due to State Government Cash 10. The employer's FICA tax liability was recorded for $73,400. 10 General Fund 886,090 117,710 35,800 732,580 Expenditures 73,400 Due to Federal Government 73,400 10. The employer's FICA tax liability was recorded for $73,400. 10 General Fund Expenditures Due to Federal Government Governmental Activities Expenses Due to Federal Government 73,400 73,400 73,400 73,400 11. Cash collections from sales taxes totaled $839,000 and from revenue sources other than taxes were $124,000. In addition, sales taxes receivable due July 1 were accrued in the amount of $13,400. 11 General Fund Cash Sales Taxes Receivable Revenues Governmental Activities Cash Sales Taxes Receivable. 963,000 13,400 976,400 963,000 13,400 976,400 12. Amounts due to the federal government as of June 30, 2023, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund Governmental Activities 13. Purchase orders and contracts encumbered in the amount of $2,128,040 were filled at a net cost of $2,127,570, which was vouchered. General Fund Record the reversal of encumbrances entry of 2023. 13a 13b Encumbrances Outstanding Encumbrances 2,128,040 2,128,040 Record the receipt of vouchers for the purchase orders and contracts encumbered for 2023. 13c Governmental Activities Record the receipt of vouchers for the purchase orders and contracts encumbered for 2023. 14. Vouchers payable totaling $2,441,660 were paid after deducting a credit for purchases discount of $9,430 (credit Expenditures). General Fund 14 Governmental Activities 15. The tax anticipation note of $480,000 was repaid. Interest totaled $11,400. 15 General Fund 16. A transfer of $226,000 was made to establish a special revenue fund to account for expenditures related to a federal grant. 16 General Fund Governmental Activities 17. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivable and related uncollectible's 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. Record the reclassification of the unpaid property taxes of current year. 17a General Fund 17b 17c 17d Record the reclassification of the related allowance for estimated uncollectible property taxes of current year. Record the reclassification of the property tax revenue of current year. Governmental Activities Record the reclassification of the unpaid property taxes of current year. 17e 17f Record the reclassification of the related allowance for estimated uncollectible property taxes of current year. Record the reclassification of the property tax revenue of current year. 18. A physical inventory of materials and supplies at June 30, 2023, showed a total of $21,900. 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 governmental activities journal.) 18 General Fund Governmental Activities. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. (If no entry required for a transaction/event, select "No Journal Entry Required" in the first account field.) Transactions Fund 1. Record the closure of budgetary statements account. General Journal Debit Credit General Fund 2. Record the closure of operating statements account. 2 General Fund < Required A Required B >