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The Town's General Fund began fiscal year 2019 with the following balances: Assets Cash $500,000 Property taxes receivable, delinquent 100 Miscellaneous receivables 2,500 Liabilities Vouchers
The Town's General Fund began fiscal year 2019 with the following balances: | |
Assets | |
Cash $500,000 | |
Property taxes receivable, delinquent 100 | |
Miscellaneous receivables 2,500 | |
Liabilities | |
Vouchers payable 150,000 | |
Fund Balance 352,600 | |
Additionally, at year-end, the budget committee informally decided to set aside $7,000 for sexual harassment training for Town employees. |
The following transactions occurred during fiscal year 2019: | |
a. | To raise the required $315,000 in property taxes, property owners are billed for a total of $317,000. This will allow $2,000 for estimated uncollectible property taxes and refunds. |
b. | A long-time employee of the Town retires. Per Town policy, the employee is paid $9,800 for accumulated vacation pay. |
c. | The Town sends a purchase order for $4,000 to a vendor for supplies. |
d. | The General Fund pays $85,000 to the Debt Service Fund for interest and principal payments on Town debt. There is no expectation of repayment. |
e. | The vendor in c., above, delivers the supplies ordered by the Town, and bills the Town for $4,200. The Town accepts delivery and prepares a voucher for the full amount of the bill. The Town uses the consumption method to account for supplies inventory. |
f. | Property owners pay property taxes in the amount of $300,000. |
g. | The Town borrows $100,000 from the Electric Utility Enterprise Fund. The borrowing will be repaid in six months. |
h. | The voucher in e., above, is paid. |
i. | The Town receives $80,000 for sales taxes collected by the state on behalf of the Town. |
j. | S. Smith, a long-time resident, is unable to pay his $3,000 property tax bill in full. He pays $1,000, and the Town writes off the remaining $2,000 as uncollectible. |
k. | The Town is expecting a federal reimbursement grant for training police personnel to handle stressful situations. The Town receives and pays for $320,000 of training services and submits their expenditure receipts to the feds. The grant is considered available once they have reported their expenditures to the feds. |
Note: This asset should *not* be considered a restricted fund balance because it is a reimbursement. | |
l. | The General Fund receives a bill from the Water Utility Fund for $6,000. |
m. | The Town pays personal services in the amount of $253,000. |
n. | At year end, 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. |
o. | At year end, $1,000 of the supplies from e. remain. |
Prepare the balance sheet.
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