The Town of XYZ is a small residential community. The Town has three revenue sources, and three programs approved for appropriation by the state government. The Town's fiscal year transaction for 2020 is as follows: XYZ Town General Fund Operating Budget Fiscal Year 2019 Estimated Revenues Property taxes Seaport taxes License and permits $3,500,000 500,000 160,000 Appropriations Administration Public safety Library $ 550,000 2,800,000 130,000 Operating transactions during the year consist of the following: a. Due to shortage of cash to pay for the obligation, the town council decided to approve the request for applying the loan from the local bank. The town borrowed from the bank using tax anticipating notes amounting to $500,000.3% interest rates. b. Placed orders for materials and supplies for: Administration Public safety Library $200,000 1,000,000 50,000 c. Sent the bills for the following revenue: Property taxes Seaport taxes $2,000,000 200,000 d. Received items on order and record the expenditure: Administration Public safety Library Order Amount Bills Amount $80,000 $81,000 900,000 899,000 70,000 70,000 e. Revised the budget for Administration, a increase of $70,000 and decrease the estimated revenue of Seaport taxes by $40,000. f. Collected revenues as follows: Property taxes Seaport taxes License and permit 1,000,000 150,000 100,000 g. Transfer the appropriation for public safety to administration amounted to $60,000 h. Paid the loan in full with 3-month period interest period. The Town of XYZ is a small residential community. The Town has three revenue sources, and three programs approved for appropriation by the state government. The Town's fiscal year transaction for 2020 is as follows: XYZ Town General Fund Operating Budget Fiscal Year 2019 Estimated Revenues Property taxes Seaport taxes License and permits $3,500,000 500,000 160,000 Appropriations Administration Public safety Library $ 550,000 2,800,000 130,000 Operating transactions during the year consist of the following: a. Due to shortage of cash to pay for the obligation, the town council decided to approve the request for applying the loan from the local bank. The town borrowed from the bank using tax anticipating notes amounting to $500,000.3% interest rates. b. Placed orders for materials and supplies for: Administration Public safety Library $200,000 1,000,000 50,000 c. Sent the bills for the following revenue: Property taxes Seaport taxes $2,000,000 200,000 d. Received items on order and record the expenditure: Administration Public safety Library Order Amount Bills Amount $80,000 $81,000 900,000 899,000 70,000 70,000 e. Revised the budget for Administration, a increase of $70,000 and decrease the estimated revenue of Seaport taxes by $40,000. f. Collected revenues as follows: Property taxes Seaport taxes License and permit 1,000,000 150,000 100,000 g. Transfer the appropriation for public safety to administration amounted to $60,000 h. Paid the loan in full with 3-month period interest period
