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The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements.
The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations:
- Deferred inflows of resourcesproperty taxes of $51,200 at the end of the previous fiscal year were recognized as property tax revenue in the current years Statement of Revenues, Expenditures, and Changes in Fund Balance.
- The City levied property taxes for the current fiscal year in the amount of $10,000,000. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $200,000 is thought to be uncollectible, $349,000 would likely be collected during the 60-day period after the end of the fiscal year, and $53,800 would be collected after that time. The City had recognized the maximum of property taxes allowable under modified accrual accounting.
- In addition to the expenditures recognized under modified accrual accounting, the City computed that $29,000 should be accrued for compensated absences and charged to public safety.
- The Citys actuary estimated that pension expense under the Citys public safety employees pension plan is $229,000 for the current year. The City, however, only provided $212,000 to the pension plan during the current year.
- In the Statement of Revenues, Expenditures, and Changes in Fund Balances, General Fund transfers out included $500,000 to a debt service fund, $200,000 to a special revenue fund, and $850,000 to an enterprise fund.
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