The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Credits Debits $358,000 587,000 $251, 120 26,680 11,560 Cash 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 16,500 152,500 63,490 351,000 16,500 142,010 $988, 180 $988, 180 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. b. 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. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. Complete this question by entering your answers in the tabs below. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Credit Transaction Fund / Governmental General Journal Debit Activties 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,220,000 and appropriations totaling $3,176,000. 1 General Fund 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 8 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 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $45,000,000, and the tax rate was $5 per $100. It was estimated that 4 percent of the levy would be uncollectible. General Fund Governmental Activities 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,100,000. 14 General Fund Governmental Activities 5. $2,050,000 of current taxes, $387,270 of delinquent taxes, and $20,970 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. Record the $2,050,000 of current taxes, $387,270 of delinquent taxes, and $20,970 of interest and penalties collected General Fund Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. 50 Governmental Activities Record the $2,050,000 of current taxes, $387,270 of delinquent taxes, and $20,970 of interest and penalties collected 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 $38,840, of which 25 percent was estimated to be uncollectible. 6 General Fund Governmental Activities 7. Because of a change in state law, the city was notified that it will receive $88,000 less in intergovernmental revenues than was budgeted. General Fund Governmental Activities 8. Delinquent taxes of $13,501 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. 8 General Fund Governmental Activities 9. Total payroll during the year was $859,490. Of that amount, $66,690 was withheld for employees' FICA tax liability, $107,710 for employees' federal income tax liability, and $34,800 for state taxes, the balance was paid to employees in cash. General Fund Governmental Activities 10. The employer's FICA tax liability was recorded for $66,690. 10 General Fund Governmental Activities 11. Revenues from sources other than taxes were collected in the amount of $951,000. 11 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. General Fund Governmental Activities 13. Purchase orders and contracts encumbered in the amount of $2,028,040 were filled at a net cost of $2,027,570, which was vouchered. 13a General Fund Record the encumbrances outstanding for 2020. 13b Record the total expenditures against vouchers payable for 2020. 13c Governmental Activities Record the total expenses against vouchers payable for 2020. 14. Vouchers payable totaling $2,341,660 were paid after deducting a credit for purchases discount of $8,430 (credit Expenditures). 14 General Fund 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. 16b Record the adjustment for the delinquent amount of tax against the allowance. 16c Record the deferred inflow of resource 16d Governmental Activities Record the delinquent amount of unpaid property taxes. 16e Record the adjustment for the delinquent amount of tax against the allowance. 16f Record the deferred inflow of resource 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $19,900. 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. Recorded entry to reclassify the fund balance.) 17 General Fund | Governmental Activities 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. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) General Journal Debit Credit Transactions Fund 1. Record the closure of budgetary statements account. General Fund 2. Record the closure of operating statements account. 2 General Fund 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 ReceivableDelinquent Less: Allowance for Uncollectible Taxes-Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities and Fund Balances Liabilities: Vouchers Payable Deferred Inflows of ResourcesUnavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances: NonspendableInventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. CITY OF CASTLETON General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2020 Revenues Taxes Interest and Penalties on Taxes Other Sources Total Revenues Expenditures Salaries and Wages Interest on Note Payable Other Total Expenditures Excess of Revenues over Expenditures ncrease in Inventory of Supplies Fund Balances, July 1, 2019 Fund Balances, June 30, 2020