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[The following information applies to the questions displayed below.] The City of Lynnwood was recently incorporated and had the following transactions for the fiscal year

[The following information applies to the questions displayed below.]

The City of Lynnwood was recently incorporated and had the following transactions for the fiscal year ended December 31.

  1. The city council adopted a General Fund budget for the fiscal year. Revenues were estimated at $2,060,000 and appropriations were $1,996,000.
  2. Property taxes in the amount of $2,000,000 were levied. It is estimated that $12,000 of the taxes levied will be uncollectible.
  3. A General Fund transfer of $28,000 in cash and $306,000 in equipment (with accumulated depreciation of $71,000) was made to establish a central duplicating internal service fund.
  4. A citizen of Lynnwood donated marketable securities with a fair value of $860,000. The donated resources are to be maintained in perpetuity with the city using the revenue generated by the donation to finance an after-school program for children, which is sponsored by the culture and recreation function. Revenue earned and received as of December 31 was $46,000.
  5. The citys utility fund billed the citys General Fund $131,000 for water and sewage services. As of December 31, the General Fund had paid $130,000 of the amount billed.
  6. The central duplicating fund purchased $7,500 in supplies.
  7. Cash collections recorded by the general government function during the year were as follows:

Property taxes $ 1,931,000
Licenses and permits 41,000
User charges 31,000

  1. During the year, the internal service fund billed the citys general government function $18,700 for duplicating services and it billed the citys utility fund $11,100 for services.
  2. The city council decided to build a city hall at an estimated cost of $5,060,000. To finance the construction, 6 percent bonds were sold at the face value of $5,060,000. A contract for $4,560,000 has been signed for the project; however, no expenditures have been incurred as of December 31.
  3. The general government function issued a purchase order for $35,000 for computer equipment. When the equipment was received, a voucher for $32,500 was approved for payment and payment was made.

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[The following information applies to the questions displayed below.]

The City of Lynnwood was recently incorporated and had the following transactions for the fiscal year ended December 31.

  1. The city council adopted a General Fund budget for the fiscal year. Revenues were estimated at $2,000,000 and appropriations were $1,990,000.
  2. Property taxes in the amount of $1,940,000 were levied. It is estimated that $9,000 of the taxes levied will be uncollectible.
  3. A General Fund transfer of $25,000 in cash and $300,000 in equipment (with accumulated depreciation of $65,000) was made to establish a central duplicating internal service fund.
  4. A citizen of Lynnwood donated marketable securities with a fair value of $800,000. The donated resources are to be maintained in perpetuity with the city using the revenue generated by the donation to finance an after-school program for children, which is sponsored by the culture and recreation function. Revenue earned and received as of December 31 was $40,000.
  5. The citys utility fund billed the citys General Fund $125,000 for water and sewage services. As of December 31, the General Fund had paid $124,000 of the amount billed.
  6. The central duplicating fund purchased $4,500 in supplies.
  7. Cash collections recorded by the general government function during the year were as follows:

Property taxes $ 1,925,000
Licenses and permits 35,000
User charges 28,000

8. During the year, the internal service fund billed the citys general government function $15,700 for duplicating services and it billed the citys utility fund $8,100 for services.

9. The city council decided to build a city hall at an estimated cost of $5,000,000. To finance the construction, 6 percent bonds were sold at the face value of $5,000,000. A contract for $4,500,000 has been signed for the project; however, no expenditures have been incurred as of December 31.

10. The general government function issued a purchase order for $32,000 for computer equipment. When the equipment was received, a voucher for $31,900 was approved for payment and payment was made.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Required a. For each transaction number, identify all of the fund and/or government-wide activity journals in which journal entries must be made. (Select all that apply.) 5. The city's utility fund billed the city's General Fund $131,000 for water and sewage services. As of December 31 , the General Fund had paid $130,000 of the amount billed. \begin{tabular}{|c|c|c|c|c|} \hline 5a & Enterprise fund & \multicolumn{3}{|l|}{ Record the $131,000 services received for water and sewage in the enterprise fund. } \\ \hline & & Due from Other Funds & 131,000 & \\ \hline & & Charges for Services & & 131,000 \\ \hline \multirow[t]{3}{*}{5b} & & \multicolumn{3}{|l|}{ Record the $130,000 received from the general fund in the enterprise fund. } \\ \hline & & Cash & 130,000 & \\ \hline & & Due from Other Funds & & 130,000 \\ \hline \multirow[t]{3}{*}{5c} & General Fund & \multicolumn{3}{|l|}{ Record the $131,000 services received for water and sewage in the general fund. } \\ \hline & & Expenditures & 131,000 & \\ \hline & & Due to Other Funds & & 131,000 \\ \hline \multirow[t]{3}{*}{5d} & & \multicolumn{3}{|l|}{ Record the $130,000 payment made to the enterprise fund in the general fund. } \\ \hline & & Due to Other Funds & 130,000 & \\ \hline & & Cash & & 130,000 \\ \hline \multirow[t]{3}{*}{5e} & \begin{tabular}{l} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{ Record the $131,000 services received for water and sewage in the Governmental Activities general ledger. } \\ \hline & & Expenses-General Government & 131,000 & \\ \hline & & Internal Balances & & 131,000 \\ \hline \multirow[t]{3}{*}{5f} & & \multicolumn{3}{|l|}{ Record the $130,000 received from the general fund in the Governmental Activities general ledger. } \\ \hline & & Internal Balances & 130,000 & \\ \hline & & Cash & & 130,000 \\ \hline \multicolumn{5}{|c|}{ 6. The central duplicating fund purchased $7,500 in supplies. } \\ \hline \multirow[t]{3}{*}{6a} & \begin{tabular}{l} Internal service \\ fund \end{tabular} & \multicolumn{3}{|l|}{ Record the $7,500 purchase of supplies in the internal service fund. } \\ \hline & & Inventory of Supplies & 7,500 & \\ \hline & & Cash & & 7,500 \\ \hline \multirow[t]{3}{*}{6b} & \begin{tabular}{l} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|l|}{ Record the $7,500 purchase of supplies in the Governmental Activities general ledger. } \\ \hline & & Inventory of Supplies & 7,500 & \\ \hline & & Cash & & 7,500 \\ \hline \multicolumn{5}{|c|}{\begin{tabular}{l} 7. Cash collections recorded by the general government function during the year were as follows: property taxes, $1,931,000; licenses and permits, $41,000; \\ user charges, $31,000. \end{tabular}} \\ \hline \multirow[t]{4}{*}{7a} & General Fund & \multicolumn{3}{|c|}{\begin{tabular}{l} Record the cash collections of $1,931,000 for property taxes; $41,000 for licenses and permits; $31,000 for user \\ charges in the general fund. \end{tabular}} \\ \hline & & Cash & 2,003,000 & \\ \hline & & Taxes Receivable-Current & & 1,931,000 \\ \hline & & Revenues & & 72,000 \\ \hline \multirow[t]{4}{*}{7b} & \begin{tabular}{l} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{\begin{tabular}{l} Record the cash collections of $1,931,000 for property taxes; $41,000 for licenses and permits; $31,000 for user \\ charges in the Governmental Activities general ledger. \end{tabular}} \\ \hline & & Cash & 2,003,000 & \\ \hline & & Taxes Receivable-Current & & 1,931,000 \\ \hline & & Program Revenue-General Government-Charges for Services & & 72,000 \\ \hline \end{tabular} 8. During the year, the internal service fund billed the city's general government function $18,700 for duplicating services and it billed the city's utility fund $11,100 for services. \begin{tabular}{|c|c|c|c|c|} \hline \multirow[t]{2}{*}{8a} & \multirow[t]{2}{*}{\begin{tabular}{l} Internal service \\ fund \end{tabular}} & \multicolumn{3}{|l|}{ Record the $18,700 duplicating services and $11,100 services billed by the internal service fund. } \\ \hline & & Due from Other Funds & 29,800 & \\ \hline & & Billings to departments & & 29,800 \\ \hline \multirow[t]{3}{*}{8b} & Enterprise fund & \multicolumn{3}{|l|}{ Record the 11,100 services billed by the internal service fund in the enterprise fund. } \\ \hline & & Expenses-Administrative & 11,100 & \\ \hline & & Due to Other Funds & & 11,1000 \\ \hline \multirow[t]{3}{*}{8c} & General Fund & \multicolumn{3}{|l|}{ Record the $18,700 duplicating services by the internal service fund in the general fund. } \\ \hline & & Expenditures & 18,700 & \\ \hline & & Due to Other Funds & & 18,7000 \\ \hline \multirow[t]{3}{*}{8d} & \begin{tabular}{l} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{ Record the 11,100 services billed by the internal service fund in the Governmental Activities general ledger. } \\ \hline & & Internal Balances & 11,100 & \\ \hline & & Program Revenue-General Government-Charges for Services & & 11,100 \\ \hline \multicolumn{5}{|c|}{\begin{tabular}{l} 9. The city council decided to build a city hall at an estimated cost of $5,060,000. To finance the construction, 6 percent bonds were sold at the face value of \\ $5,060,000. A contract for $4,560,000 has been signed for the project; however, no expenditures have been incurred as of December 31 . \end{tabular}} \\ \hline \multirow[t]{3}{*}{8a} & \begin{tabular}{l} Capital projects \\ fund \end{tabular} & \multicolumn{3}{|l|}{ Record the issue of 6% bonds with a face value of $5,060,000 in capital projects fund. } \\ \hline & & Cash & 5,060,000 & \\ \hline & & Other Financing Sources-Proceeds of Bonds & & 5,060,000 \\ \hline \multirow[t]{3}{*}{9b} & & \multicolumn{3}{|c|}{\begin{tabular}{l} Record the $4,560,000 contract signed for building a city call at an estimated cost of $5,060,000 in capital projects \\ fund. \end{tabular}} \\ \hline & & Encumbrances & 4,560,000 & \\ \hline & & Encumbrances Outstanding & & 4,560,000 \\ \hline \multirow[t]{3}{*}{9c} & \begin{tabular}{l} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{ Record the issue of 6% bonds with a face value of $5,060,000 in the Governmental Activities general ledger. } \\ \hline & & Cash & 5,060,000 & \\ \hline & & Bonds Payable & & 5,060,000 \\ \hline \multicolumn{5}{|c|}{\begin{tabular}{l} 10. The general government function issued a purchase order for $35,000 for computer equipment. When the equipment was received, a voucher for \\ $32,500 was approved for payment and payment was made. \end{tabular}} \\ \hline \multirow[t]{3}{*}{10a} & General Fund & \multicolumn{3}{|l|}{ Record the issue of purchase order for $35,000 for computer equipment in the general fund. } \\ \hline & & Encumbrances & 35,000 & \\ \hline & & Encumbrances Outstanding & & 35,000 \\ \hline \multirow[t]{5}{*}{10b} & & \multicolumn{3}{|l|}{ Record the $32,500 payment made for purchase of computer equipment in the general fund. } \\ \hline & & Encumbrances Outstanding & 35,000 & \\ \hline & & Expenditures & 32,500 & \\ \hline & & Encumbrances & & 35,000 \\ \hline & & Cash & & 32,500 \\ \hline \multirow[t]{3}{*}{10c} & \begin{tabular}{l} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{\begin{tabular}{l} Record the $32,500 payment made for purchase of computer equipment in the Governmental Activities general \\ ledger. \end{tabular}} \\ \hline & & Equipment & 32,500 & \\ \hline & & Cash & & 32,500 \\ \hline \end{tabular} Required a. For each transaction number, identify all of the fund and/or government-wide activity journals in which journal entries must be made. (Select all that apply.) Required 4. A citizen of Lynnwood donated marketable securities with a fair value of $800,000. The donated resources are to be maintained in perpetuity with the city using the revenue generated by the donation to finance an after-school program for children, which is sponsored by the culture and recreation function. Revenue earned and received as of December 31 was $40,000. \begin{tabular}{|c|c|c|c|c|} \hline \multirow[t]{2}{*}{4a} & \multirow[t]{2}{*}{ Permanent fund } & \multicolumn{3}{|l|}{ Record the receipt of $800,000 marketable securities received as donation in the permanent fund. } \\ \hline & & Investments-Marketable Securities & 800,000 & \\ \hline & & Revenues-Contributions for Endowment & & 800,000 \\ \hline \multirow[t]{3}{*}{4b} & & \multicolumn{3}{|l|}{ Record the $40,000 interest revenue earned and received in the permanent fund. } \\ \hline & & Cash & 40,000 & \\ \hline & & Revenues_Investment Earnings & & 40,000 \\ \hline \multirow[t]{3}{*}{4c} & & \multicolumn{3}{|l|}{ Record the transfer of $40,000 cash. } \\ \hline & & Other Financing Uses_Interfund Transfers Out & 40,000 & \\ \hline & & Cash & & 40,000 \\ \hline \multirow[t]{3}{*}{4d} & \begin{tabular}{l} After-School \\ Fund \end{tabular} & \multicolumn{3}{|c|}{ Record the transfer of $40,000 finance to be used for conducting an after-school program for children. } \\ \hline & & Cash & 40,000 & \\ \hline & & Other Financing Sources-Interfund Transfers In & & 40,000 \\ \hline \multirow[t]{3}{*}{4e} & \begin{tabular}{c} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{\begin{tabular}{l} Record the receipt of $800,000 marketable securities received as donation in the Governmental Activities \\ general ledger. \end{tabular}} \\ \hline & & Investments-Marketable Securities & 800,000 & \\ \hline & & General Revenues-Contributions for Endowment & & 800,000 \\ \hline \multirow[t]{3}{*}{4f} & & \multicolumn{3}{|c|}{ Record the receipt of $40,000 interest revenue earned in the Governmental Activities general ledger. } \\ \hline & & Cash & 40,000 & \\ \hline & & \begin{tabular}{l} Program Revenues-Culture and Recreation-Operating Grants and \\ Contributions \end{tabular} & & 40,000 \\ \hline \multicolumn{5}{|c|}{\begin{tabular}{l} 5. The city's utility fund billed the city's General Fund $125,000 for water and sewage services. As of December 31, the General Fund had paid \$124,000 \\ of the amount biled. \end{tabular}} \\ \hline \multirow[t]{3}{*}{5a} & Enterprise fund & \multicolumn{3}{|l|}{ Record the $125,000 services received for water and sewage in the enterprise fund. } \\ \hline & & Due from Other Funds & 125,000 & \\ \hline & & Charges for Services & & 125,000 \\ \hline \multirow[t]{3}{*}{5b} & & \multicolumn{3}{|l|}{ Record the $124,000 received from the general fund in the enterprise fund. } \\ \hline & & Cash & 124,000 & \\ \hline & & Due from Other Funds & & 124,000 \\ \hline \multirow[t]{3}{*}{5c} & General Fund & \multicolumn{3}{|l|}{ Record the $125,000 services received for water and sewage in the general fund. } \\ \hline & & Expenditures & 125,000 & \\ \hline & & Due to Other Funds & & 125,000 \\ \hline \multirow[t]{3}{*}{5d} & & \multicolumn{3}{|l|}{ Record the $124,000 payment made to the enterprise fund in the general fund. } \\ \hline & & Due to Other Funds & 124,000 & \\ \hline & & Cash & & 124,000 \\ \hline \multirow[t]{3}{*}{5e} & \begin{tabular}{l} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{ Record the $125,000 services received for water and sewage in the Governmental Activities general ledger. } \\ \hline & & Expenses-General Government & 125,000 & \\ \hline & & Internal Balances & & 125,000 \\ \hline \multirow[t]{3}{*}{5f} & & \multicolumn{3}{|l|}{ Record the $124,000 received from the general fund in the Governmental Activities general ledger. } \\ \hline & & Internal Balances & 124,000 & \\ \hline & & Cash & & 124,000 \\ \hline \end{tabular} 6. The central duplicating fund purchased $4,500 in supplies. \begin{tabular}{|c|c|c|c|c|} \hline 6a & \begin{tabular}{l} Internal service \\ fund \end{tabular} & \multicolumn{3}{|l|}{ Record the $4,500 purchase of supplies in the internal service fund. } \\ \hline & & Inventory of Supplies & 4,500 & \\ \hline & & Cash & & 4,500 \\ \hline \multirow[t]{3}{*}{6b} & \begin{tabular}{c} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|l|}{ Record the $4,500 purchase of supplies in the Governmental Activities general ledger. } \\ \hline & & Inventory of Supplies & 4,500 & \\ \hline & & Cash & & 4,500 \\ \hline \multicolumn{5}{|c|}{\begin{tabular}{l} 7. Cash collections recorded by the general government function during the year were as follows: property taxes, $1,925,000; licenses and permits, \\ $35,000; user charges, $28,000. \end{tabular}} \\ \hline \multirow[t]{4}{*}{7a} & General Fund & \multicolumn{3}{|c|}{\begin{tabular}{l} Record the cash collections of $1,925,000 for property taxes; $35,000 for licenses and permits; $28,000 for user \\ charges in the general fund. \end{tabular}} \\ \hline & & Cash & 1,988,000 & \\ \hline & & Taxes Receivable-Current & & 1,925,000 \\ \hline & & Revenues & & 63,000 \\ \hline \multirow[t]{4}{*}{7b} & \begin{tabular}{c} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{\begin{tabular}{l} Record the cash collections of $1,925,000 for property taxes; $35,000 for licenses and permits; $28,000 for user \\ charges in the Governmental Activities general ledger. \end{tabular}} \\ \hline & & Cash & 1,988,000 & \\ \hline & & Taxes Receivable-Current & & 1,925,000 \\ \hline & & Program Revenue_General Government_-Charges for Services & & 63,000 \\ \hline \multicolumn{5}{|c|}{\begin{tabular}{l} 8. During the year, the internal service fund billed the city's general government function $15,700 for duplicating services and it billed the city's utility fund \\ $8,100 for services. \end{tabular}} \\ \hline \multirow[t]{3}{*}{8a} & \begin{tabular}{l} Internal service \\ fund \end{tabular} & \multicolumn{3}{|c|}{ Record the $15,700 duplicating services and $8,100 services billed by the internal service fund. } \\ \hline & & Due from Other Funds & 23,800 & \\ \hline & & Billings to departments & & 23,800 \\ \hline \multirow[t]{3}{*}{8b} & Enterprise fund & \multicolumn{3}{|l|}{ Record the 8,100 services billed by the internal service fund in the enterprise fund. } \\ \hline & Enterprise fund & Expenses-Administrative & 8,100 & \\ \hline & & Due to Other Funds & & 8,100 \\ \hline \multirow[t]{3}{*}{8c} & General Fund & \multicolumn{3}{|l|}{ Record the $15,700 duplicating services by the internal service fund in the general fund. } \\ \hline & & Expenditures & 15,700 & \\ \hline & & Due to Other Funds & & 15,700 \\ \hline \multirow[t]{3}{*}{ 8d } & \begin{tabular}{c} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{ Record the 8,100 services billed by the internal service fund in the Governmental Activities general ledger. } \\ \hline & & Internal Balances & 8,100 & \\ \hline & & Program Revenue_General Government_Charges for Services & & 8,100 \\ \hline \multicolumn{5}{|c|}{\begin{tabular}{l} 9. The city council decided to build a city hall at an estimated cost of $5,000,000. To finance the construction, 6 percent bonds were sold at the face \\ value of $5,000,000. A contract for $4,500,000 has been signed for the project; however, no expenditures have been incurred as of December 31 . \end{tabular}} \\ \hline \multirow[t]{3}{*}{9a} & \begin{tabular}{l} Capital projects \\ fund \end{tabular} & \multicolumn{3}{|l|}{ Record the issue of 6% bonds with a face value of $5,000,000 in capital projects fund. } \\ \hline & & Cash & 5,000,000 & \\ \hline & & Other Financing Sources-Proceeds of Bonds & & 5,000,000 \\ \hline \multirow[t]{3}{*}{9b} & & \multicolumn{3}{|c|}{\begin{tabular}{l} Record the $4,500,000 contract signed for building a city call at an estimated cost of $5,000,000 in capital \\ projects fund. \end{tabular}} \\ \hline & & Encumbrances & 4,500,000 & \\ \hline & & Encumbrances Outstanding & & 4,500,000 \\ \hline \multirow[t]{3}{*}{9c} & \begin{tabular}{l} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{ Record the issue of 6% bonds with a face value of $5,000,000 in the Governmental Activities general ledger. } \\ \hline & & Cash & 5,000,000 & \\ \hline & & Bonds Payable & & 5,000,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multirow[t]{2}{*}{10a} & \multirow[t]{2}{*}{ General Fund } & \multicolumn{3}{|l|}{ Record the issue of purchase order for $32,000 for computer equipment in the general fund. } \\ \hline & & Encumbrances & 32,000 & \\ \hline & & Encumbrances Outstanding & & 32,000 \\ \hline \multirow[t]{5}{*}{106} & & \multicolumn{3}{|l|}{ Record the $31,900 payment made for purchase of computer equipment in the general fund. } \\ \hline & & Encumbrances Outstanding & 32,000 & \\ \hline & & Expenditures & 31,900 & \\ \hline & & Encumbrances & & 32,000 \\ \hline & & Cash & & 31,900 \\ \hline \multirow[t]{3}{*}{10c} & \begin{tabular}{c} Governmental \\ Activity \end{tabular} & \multicolumn{3}{|c|}{\begin{tabular}{l} Record the $31,900 payment made for purchase of computer equipment in the Governmental Activities general \\ ledger. \end{tabular}} \\ \hline & & Equipment & 31,9000 & \\ \hline & & Cash & & 31,900 \\ \hline \end{tabular}

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