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The question is from govt and not for profit making accounting, as the question states in red font, use requirement 3 to answer the question.
The question is from govt and not for profit making accounting, as the question states in red font, use requirement 3 to answer the question. the question is complete just use requirement 3 in the question to answer the question.
The following is a trial balance of the General Fund of the city of Mongu as of December 31, 20x0, after closing entries: D K33,600 25,400 K 5,900 Cash Taxes ReceivableDelinquent Allowance for Uncollectible Taxes-Delinquent.. Accounts Receivable Allowance for Uncollectible Accounts Vouchers Payable Fund Balance 15,500 2,500 42,000 24,100 K74.500 K74.500 (Because interest and penalties on taxes are not material, they are not accrued.) The following transactions took place during 20x1: R. Reestablish the encumbrances carried over from 20x0, K16,000. 1. The budget for the year was adopted. Revenues were estimated at K216,000; appropriations of K229,000 were made, including an appropriation of K16,000 for materials ordered in 20X0. 2. Delinquent taxes of K2800 were declared uncollectible and written off. 3. Property taxes of K210,000 were levied; a 3% allowance for estimated losses was provided. 4. Uniforms estimated to cost K15,000 were ordered, as was a snowplow estimated to cost K3,500. 5. The materials ordered in 20X0 and set up as an encumbrance of that year for K16,000 was received the actual cost, K15,000, was vouchered for later payment. 6. Collections were made as follows: Current Taxes K182,000 Delinquent Taxes. 8,500 Interest and Penalties on Taxes 200 Accounts Receivable 7.300 Total K198.000 7. Received a bill for K3,000 from the city central printing shop. 8. Payroll vouchers for K 100,000 were approved and paid, as was a transfer of K38,000 to a Debt Service Fund to cover serial bond debt service. 9. The uniforms and snowplow (ordered in 4) were received; the invoices were for K16,000 and K3,800, respectively. 10. Delinquent taxes of 350, written off in preceding years, were collected. 11. Current taxes receivable became delinquent. 12. Paid K200 to a Special Revenue Fund for supplies acquired for General Fund purposes, but originally paid for from and recorded as expenditures in) a Special Revenue Fund; and paid K60,000 of vouchers payable. 13. An order was placed for equipment estimated to cost K24,000. 14. Miscellaneous revenues of K5,000 were collected, and K5,000 was received from a discontinued Capital Projects Fund. 1. Required: 1. Post the opening trial balance to T-accounts. 2. Prepare journal entries and Post the journal entries to the T-accounts opened in (1) 3. Prepare preclosing trial balance at December 31, 20X1. 4. Prepare closing entries. 5. Prepare a post-closing trial balance at December 31, 20X1. Suggested Solutions Requirements (1. Post the opening trial balance to T-accounts), (2. Posting the journal entries to the T-accounts opened in (1 and 2) Commented [U1]: The T-Accounts here include the opening balances in requirement! and the journal entry Allowance in collecte balances in the T-Accounts in requirement Two Taxes Recchewww Taxes Owen 33.000 138,000 8) (B) 25,400 (2) (2) 2,800 3,900 199,000 60,2000 (12) (10) 350 &500 (6) 350 (1) 350 (I la 28.00 350 (10) J. 31.250 241.950 Tas, 2000 E) 43,754 Commented [U2]: Afterall values are entered. The cksing Balming entry (E) is taken to the trial balance. Cash (105) 12.50 9,730 Powelers Payable ceww Recehwe 15,500 2. JUNI X200 (6) ) E) ulowance for Uwcollecwhile cows 2,500 (R) 2,50 E) (12) 15,000 JORDI 76,800 16,800 (R) (55 w 60,000 E) Estimated Revenues 216,000 216,00 Fwd Bul 24,100 37.900 da) 9) ACI) 1 En www.es Owinding 16000 16,000 (R) J&500 18,500 24,000 (13) 58,500 58,500 B) C2) E) Commented [U3]: Closing entry for Estimated Revenues credited () Badactar Fad Balance 13,000 2 ACI) CI) . 229,000 229,000 () (3) (R) (4) Ewwwwws 16000 J4000 J&,500 1,500 24,000 24,000 58,500 58,500 (Sa) 1) C) Rewww 203,700 2000 5,000 2018, 208, WM (13) C2) Commented (U4): Closing entry for Revenues Debited Allowance en wolle Taxes Owen chi 6,300 3) 4200 (3) 5) Laxes Recehvaherren 210,000 182,000 (6) 28,00 (Ha) 210,000 210.00 8) Expedwes IS, IN 3,000 J0000 19,800 200 138 138,00 (12) Commented [US]: Closing entry for Expenditure Credited Due to internal Service Fund OFL-Trowser Deb Service Fwd OF S-Trowser om Cari Prolu Fwd 3,000 (7) 38,000 38,000 (C2) (C2) 5,000 Commented [U6]: Closing entry for other Financing sources Credited 3.1 (E) Requirement (2) Prepare journal entries and Post the journal entries to the T- accounts opened in (1) # Commented (U7): The journal cries past here are taken to the T- Accounts after the opening balances (B) are posted in the T-Accounts. Accounts Dr. Or. 16,000 R Encumbrances (Materials) Encumbrances Outstanding To reestablish encumbrances 16,000 216,000 13,000 229,000 2,800 2,800 210,000 6,300 203,700 1. Estimated Revenues Budgetary Fund Balance Appropriations To record budget adoption 2. Allowance for Uncollectible Taxes-Delinquent Taxes Receivable-Delinquent To record write affof taxes 3. Taxes Receivable-Current Allowance for Uncollectible Taxes-Current. Revenues (Taxes).... To record tax levy 4. Encumbrances (Uniforms, K15,000; snowplow, K3,500) Encumbrances Outstanding ----... To record encumbrances for uniforms and snowplow ordered Sa. Encumbrances Outstanding Encumbrances (Materials) To reverse encumbrance entry 5b. Expenditures (Materials) Vouchers Payable To record expenditure for materials 18,500 18,500 16,000 16,000 15,000 15.000 198,000 Cash Taxes Receivable-Current Taxes Receivable-Delinquent Revenues (Interest and Penalties) Accounts Receivable To record cash receipts 182,000 &500 200 7,300 350 7. Expenditures (Printing Services) 3,000 Due to Internal Service Fund 3,000 To record expenditures and liability to central printing shop (an interfund services transaction) & Expenditures (Personal Services) 100,000 OF U-Transfer to Dehr Service Fund 38,000 Cash 138,000 To record payment of payroll and transfer 9. Encumbrances Outstanding 18,300 Encumbrances (uniforms, K75.000; snowplow, K 3,500) 18,500 To reverse encumbrance entry for uniforms and snowplow 95. Expenditures (uniforms, KI6,000; snowplow, K3,800) 19,800 Vouchers Payable 19,800 To record expenditures for uniforms and snowplow 10a. Taxes Receivable-Delinquent Allowance for Uncollectible Taxes-Delinquent 350 To re-establish taxes receivable previously written off Ioh. Cash 3.50 Taxes Receivable-Delinquent 350 To record collection of taxes previously written off 10. Alternative entry acceptable with assumption that taxpayer ledger account updated for payment of taxes: Cash 330 Allowance for Uncollectible Taxes-Delinquent 350 To record collection of taxes previously written off Taxpayer ledger account has been updated Ila Threx Rereiwohl Delingen 28.000 Taxes Receivable-Current 28,000 To record taxes becoming delinquent 11h. Allowance for Uncallectible Taxes-Current 6,300 Allowance for Uncollectible TaxesDelinquent 6,300 To reclassify allowance account as relating to delinquent taxes 12. Expenditures (Materials) 200 Vouchers Payable 60,000 Cash 60,200 To pay vouchers and reimburse Special Revenue Fund 13. Encumbrances (Equipment) 24,000 Encumbrances Outstanding... 24,000 To record encumbrance for equipment ordered 14. Cash 10,000 Revenues (Miscellaneous) OF S-Transfer from Capital Projects Fund To record collection of various revenues not previously accrued and transfer in 5.000 5.000 Requirement (3) Prepare pre-closing trial balance at December 31, 20x0. Commented (U8): The procksing trial balance is the basis kr preparing Financial Statements. City of Manga General Food Preckasing Trial Balance December 31, 20X7 Accounts Cash Taxes Receivable-Delinquent Allowance for Uncollectible Taxes-Delinquent Accounts Receivable Allowance for Uncollectible Accounts Vouchers Payable Encuentrances Outstanding Fond Balance Badgetary Fund Balance Estimated Revenues Appropriations Enchances Revenues Expenditures Due to Internal Service Ford OFU-Transfer to Dehr Service Fund. OFS-Transfer from Capital Projects Ford D. K 13,750 42.100 K 9.750 4200 2,500 16,800 24.000 24.100 13,000 216,000 229.000 24.000 208.900 138,000 3.000 28.000 5,000 K523.050 523.050 Requirement (4) Prepare closing entries. Commented [19]: We ckwe incumbences, Revenues and all expense accounts, which include srankrs Accounts Dr. Or. 24,000 229.000 Cl. Encumbiances Outstanding- Appropriations Encumbrances. Estimated Revenues Budgetary Fund Balance .... To close the budgetary accounts at year end 24,000 216,000 13,000 C2. Revenues OF S-Transfer from Capital Projects Fund... Expenditures 208.900 5,000 138,000 OFU-Transfer to Dehr Service Fund Fund Balance ------ To close the Revenwes and Expenditure accounts ar year end 38,000 37.900 Commented (U10): Post-closing trial balance caly inclades Balance sheet accounts Problem (5) Prepare a post-closing trial balance at December 31, 20X1! City of Mongu General Fund Postclosing Trial Balance December 31, 20X1 Accounts Cash Taxes Receivable-Delinquent Allowance for Uncollectible Taxes-Delinquent Accounts Receivable --... Allowance for Uncollectible Accounts - Vouchers Payable Due to Internal Service Fund Fund Balance D 0. K43,750 42,100 K 9.750 &200 2,500 16,800 3.000 62,000 K04.050 K04.050 From the trial Balance in requirement number Three, Prepare all necessary financial statements for the General Fund of the City of Mongu (10 Marks) The following is a trial balance of the General Fund of the city of Mongu as of December 31, 20x0, after closing entries: D K33,600 25,400 K 5,900 Cash Taxes ReceivableDelinquent Allowance for Uncollectible Taxes-Delinquent.. Accounts Receivable Allowance for Uncollectible Accounts Vouchers Payable Fund Balance 15,500 2,500 42,000 24,100 K74.500 K74.500 (Because interest and penalties on taxes are not material, they are not accrued.) The following transactions took place during 20x1: R. Reestablish the encumbrances carried over from 20x0, K16,000. 1. The budget for the year was adopted. Revenues were estimated at K216,000; appropriations of K229,000 were made, including an appropriation of K16,000 for materials ordered in 20X0. 2. Delinquent taxes of K2800 were declared uncollectible and written off. 3. Property taxes of K210,000 were levied; a 3% allowance for estimated losses was provided. 4. Uniforms estimated to cost K15,000 were ordered, as was a snowplow estimated to cost K3,500. 5. The materials ordered in 20X0 and set up as an encumbrance of that year for K16,000 was received the actual cost, K15,000, was vouchered for later payment. 6. Collections were made as follows: Current Taxes K182,000 Delinquent Taxes. 8,500 Interest and Penalties on Taxes 200 Accounts Receivable 7.300 Total K198.000 7. Received a bill for K3,000 from the city central printing shop. 8. Payroll vouchers for K 100,000 were approved and paid, as was a transfer of K38,000 to a Debt Service Fund to cover serial bond debt service. 9. The uniforms and snowplow (ordered in 4) were received; the invoices were for K16,000 and K3,800, respectively. 10. Delinquent taxes of 350, written off in preceding years, were collected. 11. Current taxes receivable became delinquent. 12. Paid K200 to a Special Revenue Fund for supplies acquired for General Fund purposes, but originally paid for from and recorded as expenditures in) a Special Revenue Fund; and paid K60,000 of vouchers payable. 13. An order was placed for equipment estimated to cost K24,000. 14. Miscellaneous revenues of K5,000 were collected, and K5,000 was received from a discontinued Capital Projects Fund. 1. Required: 1. Post the opening trial balance to T-accounts. 2. Prepare journal entries and Post the journal entries to the T-accounts opened in (1) 3. Prepare preclosing trial balance at December 31, 20X1. 4. Prepare closing entries. 5. Prepare a post-closing trial balance at December 31, 20X1. Suggested Solutions Requirements (1. Post the opening trial balance to T-accounts), (2. Posting the journal entries to the T-accounts opened in (1 and 2) Commented [U1]: The T-Accounts here include the opening balances in requirement! and the journal entry Allowance in collecte balances in the T-Accounts in requirement Two Taxes Recchewww Taxes Owen 33.000 138,000 8) (B) 25,400 (2) (2) 2,800 3,900 199,000 60,2000 (12) (10) 350 &500 (6) 350 (1) 350 (I la 28.00 350 (10) J. 31.250 241.950 Tas, 2000 E) 43,754 Commented [U2]: Afterall values are entered. The cksing Balming entry (E) is taken to the trial balance. Cash (105) 12.50 9,730 Powelers Payable ceww Recehwe 15,500 2. JUNI X200 (6) ) E) ulowance for Uwcollecwhile cows 2,500 (R) 2,50 E) (12) 15,000 JORDI 76,800 16,800 (R) (55 w 60,000 E) Estimated Revenues 216,000 216,00 Fwd Bul 24,100 37.900 da) 9) ACI) 1 En www.es Owinding 16000 16,000 (R) J&500 18,500 24,000 (13) 58,500 58,500 B) C2) E) Commented [U3]: Closing entry for Estimated Revenues credited () Badactar Fad Balance 13,000 2 ACI) CI) . 229,000 229,000 () (3) (R) (4) Ewwwwws 16000 J4000 J&,500 1,500 24,000 24,000 58,500 58,500 (Sa) 1) C) Rewww 203,700 2000 5,000 2018, 208, WM (13) C2) Commented (U4): Closing entry for Revenues Debited Allowance en wolle Taxes Owen chi 6,300 3) 4200 (3) 5) Laxes Recehvaherren 210,000 182,000 (6) 28,00 (Ha) 210,000 210.00 8) Expedwes IS, IN 3,000 J0000 19,800 200 138 138,00 (12) Commented [US]: Closing entry for Expenditure Credited Due to internal Service Fund OFL-Trowser Deb Service Fwd OF S-Trowser om Cari Prolu Fwd 3,000 (7) 38,000 38,000 (C2) (C2) 5,000 Commented [U6]: Closing entry for other Financing sources Credited 3.1 (E) Requirement (2) Prepare journal entries and Post the journal entries to the T- accounts opened in (1) # Commented (U7): The journal cries past here are taken to the T- Accounts after the opening balances (B) are posted in the T-Accounts. Accounts Dr. Or. 16,000 R Encumbrances (Materials) Encumbrances Outstanding To reestablish encumbrances 16,000 216,000 13,000 229,000 2,800 2,800 210,000 6,300 203,700 1. Estimated Revenues Budgetary Fund Balance Appropriations To record budget adoption 2. Allowance for Uncollectible Taxes-Delinquent Taxes Receivable-Delinquent To record write affof taxes 3. Taxes Receivable-Current Allowance for Uncollectible Taxes-Current. Revenues (Taxes).... To record tax levy 4. Encumbrances (Uniforms, K15,000; snowplow, K3,500) Encumbrances Outstanding ----... To record encumbrances for uniforms and snowplow ordered Sa. Encumbrances Outstanding Encumbrances (Materials) To reverse encumbrance entry 5b. Expenditures (Materials) Vouchers Payable To record expenditure for materials 18,500 18,500 16,000 16,000 15,000 15.000 198,000 Cash Taxes Receivable-Current Taxes Receivable-Delinquent Revenues (Interest and Penalties) Accounts Receivable To record cash receipts 182,000 &500 200 7,300 350 7. Expenditures (Printing Services) 3,000 Due to Internal Service Fund 3,000 To record expenditures and liability to central printing shop (an interfund services transaction) & Expenditures (Personal Services) 100,000 OF U-Transfer to Dehr Service Fund 38,000 Cash 138,000 To record payment of payroll and transfer 9. Encumbrances Outstanding 18,300 Encumbrances (uniforms, K75.000; snowplow, K 3,500) 18,500 To reverse encumbrance entry for uniforms and snowplow 95. Expenditures (uniforms, KI6,000; snowplow, K3,800) 19,800 Vouchers Payable 19,800 To record expenditures for uniforms and snowplow 10a. Taxes Receivable-Delinquent Allowance for Uncollectible Taxes-Delinquent 350 To re-establish taxes receivable previously written off Ioh. Cash 3.50 Taxes Receivable-Delinquent 350 To record collection of taxes previously written off 10. Alternative entry acceptable with assumption that taxpayer ledger account updated for payment of taxes: Cash 330 Allowance for Uncollectible Taxes-Delinquent 350 To record collection of taxes previously written off Taxpayer ledger account has been updated Ila Threx Rereiwohl Delingen 28.000 Taxes Receivable-Current 28,000 To record taxes becoming delinquent 11h. Allowance for Uncallectible Taxes-Current 6,300 Allowance for Uncollectible TaxesDelinquent 6,300 To reclassify allowance account as relating to delinquent taxes 12. Expenditures (Materials) 200 Vouchers Payable 60,000 Cash 60,200 To pay vouchers and reimburse Special Revenue Fund 13. Encumbrances (Equipment) 24,000 Encumbrances Outstanding... 24,000 To record encumbrance for equipment ordered 14. Cash 10,000 Revenues (Miscellaneous) OF S-Transfer from Capital Projects Fund To record collection of various revenues not previously accrued and transfer in 5.000 5.000 Requirement (3) Prepare pre-closing trial balance at December 31, 20x0. Commented (U8): The procksing trial balance is the basis kr preparing Financial Statements. City of Manga General Food Preckasing Trial Balance December 31, 20X7 Accounts Cash Taxes Receivable-Delinquent Allowance for Uncollectible Taxes-Delinquent Accounts Receivable Allowance for Uncollectible Accounts Vouchers Payable Encuentrances Outstanding Fond Balance Badgetary Fund Balance Estimated Revenues Appropriations Enchances Revenues Expenditures Due to Internal Service Ford OFU-Transfer to Dehr Service Fund. OFS-Transfer from Capital Projects Ford D. K 13,750 42.100 K 9.750 4200 2,500 16,800 24.000 24.100 13,000 216,000 229.000 24.000 208.900 138,000 3.000 28.000 5,000 K523.050 523.050 Requirement (4) Prepare closing entries. Commented [19]: We ckwe incumbences, Revenues and all expense accounts, which include srankrs Accounts Dr. Or. 24,000 229.000 Cl. Encumbiances Outstanding- Appropriations Encumbrances. Estimated Revenues Budgetary Fund Balance .... To close the budgetary accounts at year end 24,000 216,000 13,000 C2. Revenues OF S-Transfer from Capital Projects Fund... Expenditures 208.900 5,000 138,000 OFU-Transfer to Dehr Service Fund Fund Balance ------ To close the Revenwes and Expenditure accounts ar year end 38,000 37.900 Commented (U10): Post-closing trial balance caly inclades Balance sheet accounts Problem (5) Prepare a post-closing trial balance at December 31, 20X1! City of Mongu General Fund Postclosing Trial Balance December 31, 20X1 Accounts Cash Taxes Receivable-Delinquent Allowance for Uncollectible Taxes-Delinquent Accounts Receivable --... Allowance for Uncollectible Accounts - Vouchers Payable Due to Internal Service Fund Fund Balance D 0. K43,750 42,100 K 9.750 &200 2,500 16,800 3.000 62,000 K04.050 K04.050 From the trial Balance in requirement number Three, Prepare all necessary financial statements for the General Fund of the City of Mongu (10 Marks)Step by Step Solution
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