The Town of Stuart accounts for its revenues and day-to-day operating expenditures in its General Fund. The Town uses encumbrance accounting to keep budgetary control over the appropriation for "other expenditures." Prepare journal entries to record these transactions in the General Fund for the calendar year 2022 and explain. The lines provided are used.

a. A long-time employee of the Town of Stuart retires. Per Town policy, the employee is paid $12,800 for accumulated vacation pay.

b. Property owners are billed for a total of $940,000. This will allow 2% for estimated uncollectible property taxes. $600 for estimated refunds. It is also expected that $2,500 in discounts will be taken for early payment of property taxes

c. To provide cash at the start of the year, the Town borrows $90,000 from the Electric Utility Enterprise Fund. The borrowing will be repaid in six months.

d. The Town sends a purchase order for $4,000 to a vendor for supplies.

e. The General Fund pays $85,000 to the Debt Service Fund (DSF) to enable the DSF to pay interest and principal on Town debt.

f. The vendor in d., above, delivers the supplies ordered by the Town, and bills the Town for $3,900. The Town accepts delivery and prepares a voucher for the full amount of the bill. The Town uses the purchases method to account for supplies inventory.

g. Property owners pay property taxes in the amount of $800,000. $2,700 in discounts were taken.

h. The Town repays the amount borrowed in c., above.

i. The voucher in f., above, is paid.

j. The Town receives $77,000 for sales taxes collected by the state on behalf of the Town.

k. R. Bird, a long-time resident, is unable to pay his current $2,000 property tax bill in full. He pays $950, and the Town writes off the remainder as uncollectible.

l. The Town declares all remaining unpaid property taxes to be delinquent. It also notifies delinquent property owners that they owe penalties of $2,000 on the delinquent taxes. (3 entries.)

m. The General Fund receives a bill from the Water Utility Enterprise Fund for $6,000.

n. The Town pays wages in the amount of $253,000. Will pay another $4,200 in January 2023 (which were earned in December 2022).

o. The Town is notified by the state that it collected an additional $3,000 in December 2022 sales taxes that it will remit to the Town on January 20, 2023. The Town considers sales taxes collected within 60 days of its fiscal year-end available.

p. The Town files a tax lien against one of the delinquent taxpayers (in l. above). The taxpayer is past due on $4,000 of property taxes and owes penalties and interest of $400 on delinquent taxes.

q. The city sold the property (in p.) at auction for $6,000. The auctioneer charged $300 for his services, which has not yet been paid.

r. The General Fund receives an electricity bill for $20,000 and prepares a voucher to pay the bill. The General Fund then bills the Special Revenue Fund for $3,000, representing the portion of the electricity bill applicable to the senior citizens building. (2 journal entries)

s. The Enterprise Fund is short of cash to pay its bills. The General Fund lends the Enterprise Fund $50,000 in cash, which will be repaid before the end of the year.

t. The General Fund pays cash of $100,000 to the Enterprise Fund as a subsidy to help meet the operating costs of the Enterprise Fund.

u. The county has decided to sell an old, unused school to a new developer. The carrying value was $120,000 and they sold it for $1.

v. The Town receives an expenditure-driven grant from the Federal government to provide public concerts to traditionally underserved communities. The grant contains no time limits, but the Town must sponsor "qualifying" concerts as an eligibility requirement to be reimbursed for concert costs. The City will be reimbursed for each dollar it spends on qualifying concerts up to a maximum of $60,000.

Prepare three separate journal entries in the Town's Parks and Recreation Fund (part of the General to record (1) receipt of $20,000 of grant proceeds that is received from the federal government prior to the Town sponsoring a qualifying concert, (2) incurring $65,000 of cash expenditures for qualifying concerts during the current year, and (3) recording revenue from and the billing to the federal government.

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