The City of Troy collects its annual property taxes late in its fiscal year. Consequently, each year it must finance part of its operating budget using tax anticipation notes. The notes are repaid upon collection of property taxes. On April 1, 2017, the city estimated that it will require $2,200,000 to finance governmental activities for the remainder of the 2017 fiscal year. On that date, it had $740,000 of cash on hand and $800,000 of current liabilities. Collections for the remainder of FY 2017 from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at $950,000.

Required
a.	Calculate the estimated amount of tax anticipation financing that will be required for the remainder of FY 2017.

b.

Assume that on April 2, 2017, the City of Troy borrowed the amount calculated in part a by signing tax anticipation notes bearing 5 percent per annum to a local bank. Record the issuance of the tax anticipation notes in the general journals of the General Fund and governmental activities at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Available accounts: No Journal Entry Required Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Appropriations Budgetary Fund Balance Cash Due from State Government Due to Federal Government Due to State Government Encumbrances Encumbrances Outstanding Estimated Revenues Expenditures ExpensesGeneral Government ExpensesPublic Safety Fund BalanceNonspendableInterfund Loans Receivable Fund BalanceNonspendableInventory of Supplies Fund BalanceUnassigned General RevenuesInterest and Penalities on Delinquent Taxes General RevenuesMiscellaneous General RevenuesProperty taxes Interest and Penalties Receivable Interfund Loans PayableCurrent Interfund Loans PayableNoncurrent Interfund Loans ReceivableCurrent Interfund Loans ReceivableNoncurrent Inventory of Supplies Other Financing Sources Other Financing Uses Program RevenuesGeneral Government Program RevenuesPublic Safety Revenues Tax Anticipation Notes Payable Taxes ReceivableCurrent Taxes ReceivableDelinquent Vouchers Payable

c.

By October 1, 2017, the city had collected a sufficient amount of current property taxes to repay the tax anticipation notes with interest. Prepare the general journals of the General Fund and governmental activities at the government-wide level. (If no entry is required for transaction/event, select "No Journal Entry Required" in the first account field.) Use the same accounts listed above

CITY OF TROY Calculation of Estimated Required Tax Anticipation Financing Estimated Expenditures Requirements Budgeted expenditure, remainder of FY 2017 Current liabilities payable Estimated Resources Available Cash on hand, April 1, 2017 Collection of budgeted FY 2017 revenues and delinquent property taxes, including interest and penalties Estimated Amount of Required Tax Anticipation Note Financing Transaction Fund General Journal Debit Credit 1. Record the issuance of the tax anticipation notes General Fund Governmental Activities Transaction Fund General Journal Debit Credit 1. Record the repayment of the tax anticipation notes and interest. General Fund Governmental Activities