The questions appear on the top of Chapter 5. This is Accounting for Governmental and Not-for-Profit Organizations.

ect fund in 2016 to percent tax ondi2016 to occurred durin 144 Chapter 5 diesel fuel sales highways. The fund is supported by a state. The tax is collected by private gas stations and ing month to the State. The following transactions 5-13. The state government established a capital project fund Capital Project Fund Trial Balance: December 31, 2016 Credits Debits $8,700,000 2,550,000 Cash Taxes Receivable Contracts Payable Fund Balance $1,875,000 9,375,000 1. $2,100,000 of encumbrances outstanding at December 31, 2016, wer 2. During the year, fuel taxes were remitted to the State totaling $23,600,000 re-established. including the amount due at the end of the previous year. In addition $2,900,000 is expected to be remitted in January of next year for fuel sales in December 2017. 3. The State awarded new contracts for road construction totaling $23,650,000 4. During the year, contractors submitted invoices for payment totaling s24.005,000. These were all under the terms of contracts (i.e., same amounts) issued by the State. 5. The State made payments on outstanding accounts of $23,375.000 The state government gemeral obi operates a debt service fund to service outstanding gation bonds. The following transactions occurred during Debt Service Fund Trial Balance: December 31, 2016 Cash Taxes Receivable Contracts Payable Fund Balance $1.875.000 9.375,000 1. S2,100,000 of encumbrances outstanding at December a the year, fuel taxes were remitted to the State totaling s22 year. In re-established $23 600 2 During including the amount due at the end of the previous $2,900,000 is expected to be remitted in January of net sales in December 2017. $23,650,000. $24,005,000. These were all under the terms of contracts (Gi 3. The State awarded new contracts for road constructio ment totalin (i.e., same 4. During the year, contractors submitted invoices for pa amounts) issued by the State. 5. The State made payments on outstanding accounts of $23,375.000 The state government operates a debt service fund to service outstand general obligation bonds. The following transactions occurred during 20 Debt Service Fund Trial Balance: December 31, 2016 Debits $175,000 Credits Cash Fund Balance $175,000 6. The state General Fund provided cash of $4,800,000 through transfer 7. Payments for matured ingerest totaled $2.985,000 and payments 8. In December, the State refunded bonds to obtain a better interest r the debt service fund matured principal totaled $1.850,000 during the year New bonds were issued providing proceeds of $20,000,000, which immatelyused to retire oustanding bonds in the same amount Accounting for Other Governmental Fund Types 145 Required u ise the Excel template provided. A separate tab is provided in Excel for each of the requirements: Prepare journal entries recording the events I to 8 (above) for the capi- al projects and debt service funds. Post the journal entries to T-accounts. a. b. C. Prepare closing entries. d. Prep are a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Governmental Funds (the General Fund and special revenue fund financial statements have already been prepared). e. Prepare a Balance Sheet for the Governmental Funds assuming all unexpended spendable net resources in the capital projects fund are classified as restricted and in the debt service fund are classified as assigned State Government Capital Project Fund Journal Entries December 31, 2017 Credits Debits 2,100,000 Account Title 1 Encumbrances Budgetary Fund Balance-Reserve for Encumbrances 2,100,000 2 Cash 23,600,000 Taxes Receivable Fuel Tax Revenue 2,550,000 21,050,000 Taxes Receivable Fuel Tax Revenue 2,900,000 2,900,000 3 Encumbrances 23,650,000 Budgetary Fund Balance-Reserve for Encumbrances 23,650,000 4 Capital Expenditure 24,005,000 Contracts Payable 24,005,000 Budgetary Fund Balance-Reserves for Encumbrances Encumbrances 24,005,000 24,005,000 5 Contract Payable 23,375,000 Journal Entries T-AccountsClosing Entries Statement #1 Statemen 5 6 7 8 39 0 1 6 Cash State Government Debt Service Fund Journal Entries December 31, 2017 Account Title Credits Debits 4,800,000 Other Financial Sources Transfer in 4,800,000 13 14 7 Expenditures-Bond Interest 2,985,000 1,850,000 Expenditures-Bond Principal Cash 16 47 48 8 Cash 49 50 4,835,000 20,000,000 Other Financial Sources-Bond Refunding 20,000,000 Other Financial Uses-Bond Refunding Cash 20,000,000 20,000,000 56 Journal Entries T-Accounts : Closing Entries Statement #1 : | Statement #2 12 L M CAPITAL PROJECTS FUND GENERAL LEDGER CASH TAXES RECEIVABLE CONIRACTS PAYABLE 23,375,000 1,875,000 bb FUND BALANCE 2 23,600,000 bb255000020,000 24,005,000 4 3,900,000 3,305,000 9375,000 14 BUDGETARY FUND BALANCE 15 RESERVE FORENCUMBRANCES 164 24,005,000 2,100,000 1 FUEL TAY REVENUES CAPITAL EXPENDITURES ENCUMBRANCES 12.100,000 24,005,000 4 21,050,000 24 24,005,000 23,650,000 3 3 23,650,000 2.900,000 1,745,000 1,745,000 Total debit balances 37.575,000 DEBT SERVICE FUND GENERAL LEDGER EXPENDITURES EXPENDITURES Accounting r u . ||A 1 1Merge & Center . Conditional Form $ , % , lipboard Font Alignment Number Styles L M 1,745,000 1,745,000 23,950,000 24,005,000 Total debit balances Total credit balances 37,575,000 DEBT SERVICE FUND GENERAL LEDGER EXPENDITURES BOND PRINCIPAL EXPENDITURES BOND INTEREST CASH FUND BALANCE 6 4,800,000 20,000 4,975,000 175,000 1.850,000! 2,985,000 OTHER FINANCING SOURCES REFUNDING OF ENISTING DEBT OTHER FINANCING USES REFUNDING OF EXISTING DEBT OTHER FINANCING SOURCES TRANSFERS IN 20,000 20,000 4,800,000 20,000 20,000 Total debit balances Total credit halances 4,995,000 Journal Entries T-Accounts Closing Entries Statement #1 Statement #2 STATE GOVERNMENT Capital project Fund Closing Entries December 31, 2017 Account Title Debits Credits CAPITAL PROJECTS FUND FUND BALANCE 9,375,000 bb elosing entry 9,375,000 ed Total Fund Balance STATE GOVERNMENT Debt service fund closing entries December 31, 2017 Journal Entries : T-Accounts Closing Entries Statement : Statement #2 8 Non- Committ spendable Restricted ed Assigned Unassigned Total Fund Balance STATE GOVERNMENT Debt service fund closing entries December 31, 2017 Account Title Debits Credits DEBT SERVICE FUND FUND BALANCE 175,000 bb closing entry 175,000 Non Committ spendable RestrictededAssigned Unassigned Total Fund Balance Journal Entries | T-Accounts Closing Entries statement#1 Statement #2 Special Reveaue Capital Debt Service Goveramental Total General Fund Fund Projects Fuad Fund Funds Revenues S 63,500,000 S 63,500,000 areas shaded in blue are not a a requirement of this exercise but are assumed to provide a complete fnancial statement 5,680,000 5 Fuel taxes 6 License Fees 1,162,000 233,000 69,180,000 1,417,000 1,162,000 235,000 70,597,000 11 Current 12 General 13 Public Safety 27,890,000 27 200,000 8.770,000 27.890,000 27200,000 8,770,000 1,293,300 305.000 1.293,300 305,000 16 Capital Outlay 17 Debt Service 18 Principal Total Special Capital Debt Service Goveramental General Fund Revenue Fund Projects Fund Fund Funds Assets areas shaded in blue are not a a requirement of this exercise but are assumed to provide a complete fnancial statement S 2.069,000 307,000 s 2,376,000 2,560,000 Licenses receivable Due from other governments Accrued interest receivable Supplies Inventory 2,560,000 1,077,000 58,000 700,000 220,000 6,000 1,077,000 195,000 700,000 220,000 42.700 137,000 6,700 S 7,170,700 Total Assets 2 Liabilities and Fund Balances 8 Liabilities 3,750,000 400,000 38,000 42.000 3,788,000 442.000 5 Wages Payable 4.150,000 80,000 4.230,000 t #1 | Statement #2 ect fund in 2016 to percent tax ondi2016 to occurred durin 144 Chapter 5 diesel fuel sales highways. The fund is supported by a state. The tax is collected by private gas stations and ing month to the State. The following transactions 5-13. The state government established a capital project fund Capital Project Fund Trial Balance: December 31, 2016 Credits Debits $8,700,000 2,550,000 Cash Taxes Receivable Contracts Payable Fund Balance $1,875,000 9,375,000 1. $2,100,000 of encumbrances outstanding at December 31, 2016, wer 2. During the year, fuel taxes were remitted to the State totaling $23,600,000 re-established. including the amount due at the end of the previous year. In addition $2,900,000 is expected to be remitted in January of next year for fuel sales in December 2017. 3. The State awarded new contracts for road construction totaling $23,650,000 4. During the year, contractors submitted invoices for payment totaling s24.005,000. These were all under the terms of contracts (i.e., same amounts) issued by the State. 5. The State made payments on outstanding accounts of $23,375.000 The state government gemeral obi operates a debt service fund to service outstanding gation bonds. The following transactions occurred during Debt Service Fund Trial Balance: December 31, 2016 Cash Taxes Receivable Contracts Payable Fund Balance $1.875.000 9.375,000 1. S2,100,000 of encumbrances outstanding at December a the year, fuel taxes were remitted to the State totaling s22 year. In re-established $23 600 2 During including the amount due at the end of the previous $2,900,000 is expected to be remitted in January of net sales in December 2017. $23,650,000. $24,005,000. These were all under the terms of contracts (Gi 3. The State awarded new contracts for road constructio ment totalin (i.e., same 4. During the year, contractors submitted invoices for pa amounts) issued by the State. 5. The State made payments on outstanding accounts of $23,375.000 The state government operates a debt service fund to service outstand general obligation bonds. The following transactions occurred during 20 Debt Service Fund Trial Balance: December 31, 2016 Debits $175,000 Credits Cash Fund Balance $175,000 6. The state General Fund provided cash of $4,800,000 through transfer 7. Payments for matured ingerest totaled $2.985,000 and payments 8. In December, the State refunded bonds to obtain a better interest r the debt service fund matured principal totaled $1.850,000 during the year New bonds were issued providing proceeds of $20,000,000, which immatelyused to retire oustanding bonds in the same amount Accounting for Other Governmental Fund Types 145 Required u ise the Excel template provided. A separate tab is provided in Excel for each of the requirements: Prepare journal entries recording the events I to 8 (above) for the capi- al projects and debt service funds. Post the journal entries to T-accounts. a. b. C. Prepare closing entries. d. Prep are a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Governmental Funds (the General Fund and special revenue fund financial statements have already been prepared). e. Prepare a Balance Sheet for the Governmental Funds assuming all unexpended spendable net resources in the capital projects fund are classified as restricted and in the debt service fund are classified as assigned State Government Capital Project Fund Journal Entries December 31, 2017 Credits Debits 2,100,000 Account Title 1 Encumbrances Budgetary Fund Balance-Reserve for Encumbrances 2,100,000 2 Cash 23,600,000 Taxes Receivable Fuel Tax Revenue 2,550,000 21,050,000 Taxes Receivable Fuel Tax Revenue 2,900,000 2,900,000 3 Encumbrances 23,650,000 Budgetary Fund Balance-Reserve for Encumbrances 23,650,000 4 Capital Expenditure 24,005,000 Contracts Payable 24,005,000 Budgetary Fund Balance-Reserves for Encumbrances Encumbrances 24,005,000 24,005,000 5 Contract Payable 23,375,000 Journal Entries T-AccountsClosing Entries Statement #1 Statemen 5 6 7 8 39 0 1 6 Cash State Government Debt Service Fund Journal Entries December 31, 2017 Account Title Credits Debits 4,800,000 Other Financial Sources Transfer in 4,800,000 13 14 7 Expenditures-Bond Interest 2,985,000 1,850,000 Expenditures-Bond Principal Cash 16 47 48 8 Cash 49 50 4,835,000 20,000,000 Other Financial Sources-Bond Refunding 20,000,000 Other Financial Uses-Bond Refunding Cash 20,000,000 20,000,000 56 Journal Entries T-Accounts : Closing Entries Statement #1 : | Statement #2 12 L M CAPITAL PROJECTS FUND GENERAL LEDGER CASH TAXES RECEIVABLE CONIRACTS PAYABLE 23,375,000 1,875,000 bb FUND BALANCE 2 23,600,000 bb255000020,000 24,005,000 4 3,900,000 3,305,000 9375,000 14 BUDGETARY FUND BALANCE 15 RESERVE FORENCUMBRANCES 164 24,005,000 2,100,000 1 FUEL TAY REVENUES CAPITAL EXPENDITURES ENCUMBRANCES 12.100,000 24,005,000 4 21,050,000 24 24,005,000 23,650,000 3 3 23,650,000 2.900,000 1,745,000 1,745,000 Total debit balances 37.575,000 DEBT SERVICE FUND GENERAL LEDGER EXPENDITURES EXPENDITURES Accounting r u . ||A 1 1Merge & Center . Conditional Form $ , % , lipboard Font Alignment Number Styles L M 1,745,000 1,745,000 23,950,000 24,005,000 Total debit balances Total credit balances 37,575,000 DEBT SERVICE FUND GENERAL LEDGER EXPENDITURES BOND PRINCIPAL EXPENDITURES BOND INTEREST CASH FUND BALANCE 6 4,800,000 20,000 4,975,000 175,000 1.850,000! 2,985,000 OTHER FINANCING SOURCES REFUNDING OF ENISTING DEBT OTHER FINANCING USES REFUNDING OF EXISTING DEBT OTHER FINANCING SOURCES TRANSFERS IN 20,000 20,000 4,800,000 20,000 20,000 Total debit balances Total credit halances 4,995,000 Journal Entries T-Accounts Closing Entries Statement #1 Statement #2 STATE GOVERNMENT Capital project Fund Closing Entries December 31, 2017 Account Title Debits Credits CAPITAL PROJECTS FUND FUND BALANCE 9,375,000 bb elosing entry 9,375,000 ed Total Fund Balance STATE GOVERNMENT Debt service fund closing entries December 31, 2017 Journal Entries : T-Accounts Closing Entries Statement : Statement #2 8 Non- Committ spendable Restricted ed Assigned Unassigned Total Fund Balance STATE GOVERNMENT Debt service fund closing entries December 31, 2017 Account Title Debits Credits DEBT SERVICE FUND FUND BALANCE 175,000 bb closing entry 175,000 Non Committ spendable RestrictededAssigned Unassigned Total Fund Balance Journal Entries | T-Accounts Closing Entries statement#1 Statement #2 Special Reveaue Capital Debt Service Goveramental Total General Fund Fund Projects Fuad Fund Funds Revenues S 63,500,000 S 63,500,000 areas shaded in blue are not a a requirement of this exercise but are assumed to provide a complete fnancial statement 5,680,000 5 Fuel taxes 6 License Fees 1,162,000 233,000 69,180,000 1,417,000 1,162,000 235,000 70,597,000 11 Current 12 General 13 Public Safety 27,890,000 27 200,000 8.770,000 27.890,000 27200,000 8,770,000 1,293,300 305.000 1.293,300 305,000 16 Capital Outlay 17 Debt Service 18 Principal Total Special Capital Debt Service Goveramental General Fund Revenue Fund Projects Fund Fund Funds Assets areas shaded in blue are not a a requirement of this exercise but are assumed to provide a complete fnancial statement S 2.069,000 307,000 s 2,376,000 2,560,000 Licenses receivable Due from other governments Accrued interest receivable Supplies Inventory 2,560,000 1,077,000 58,000 700,000 220,000 6,000 1,077,000 195,000 700,000 220,000 42.700 137,000 6,700 S 7,170,700 Total Assets 2 Liabilities and Fund Balances 8 Liabilities 3,750,000 400,000 38,000 42.000 3,788,000 442.000 5 Wages Payable 4.150,000 80,000 4.230,000 t #1 | Statement #2