This is an easy and simple assignment. Please read the directions.

ACC 639 Practice Set Name: _______________________________________________________ The City of Iowa City, IA is the fifth largest city in the State of Iowa. Located in the South eastern section of the state in Johnson County, Iowa City has a populatio n of approximately 68,000 residents. The City is where the University of Iowa is located. In 2008, Iowa City was hit hard by a flood when tributaries from the Mississippi River to the East caused the Iowa River to rise. Damages to residents and businesses statewide were in the billions and then-President George W. Bush designated Johnson County, and many neighboring counties, as disaster areas, allowing the then-Governor, Chet Culver, to apply for federal disaster relief. While much has returned to normal, in 2009, the City Council put forward a ballot measure that would allow for a one-cent sales tax on sales of retail goods (excluding services) from 2010 to 2013, in an effort to recoup some of the lost city revenues from the flood. In late June 2011, the city council and mayor of Iowa City adopted the fiscal year 2012 (FY 2012) budget, which is from July 1, 2011 to June 30, 2012. The partial post-closing trial balance for the General Fund at June 30, 2011 is presented in Exhibit 1 as follows (fund balance was intentionally left blank): Exhibit 1 Cash Taxes receivable--current Estimated uncollectible current taxes Inventory of Supplies Vouchers payable Reserve for encumbrances--2011 Fund balance Debit $ 935,109 771,311 Credit $ 43,900 37,900 152,100 1,056,845 Instructions: Below are selected transactions of the City of Iowa City, IA for FY 2012. Prepare the journal entries by hand only (NOT USING EXCEL) in proper format in the space provided. Be sure to show any supporting calculations to receive credit. No subsidiary activity needs to be recorded. BE VERY NEAT. Papers submitted in Excel or with any evidence of Excel will not be accepted. This Practice Set is due Wednesday, April 20, 2011 at our regular class time. July 1, 2011. On June 29, 2011, the City of Iowa City adopted and the mayor signed the fiscal year 2012 General Fund budget. The budget comprised of: Unallotted Appropriations of $48,700,000; Estimated Other financing sources of $5,000,000; Estimated other financing uses of $26,500; and Estimated Revenues of $44,200,000. Record the adoption of the FY 2012 budget in the General Fund. July 1, 2011. On June 29, 2011, the City of Iowa City adopted and the mayor signed the fiscal year 2012 Special Revenues budget, which collects the special sales taxes and grant monies for the 2008 flood and later remits the monies to a capital projects and debt services fund . The budget comprised of: Estimated Revenues of $7,600,000; Estimated other Financing Uses of $6,000,000; and Appropriations of 1,900,000. The fund balance (unreserved) at June 30, 2011 was $600,530. Record the adoption of the FY 2012 budget in the Special Revenues Fund. July 5, 2011. The General Fund made available for expenditure approximately 12 percent of the unallotted appropriations. Record the entry in the General Fund to release the allotment . July 22, 2011. Approximately $20,000 of sales tax revenues were collected in the Special Revenues Fund. Record the collection at the fund level and at the governmental act ivities (government-wide level). July 29, 2011. Employee Payroll was accrued for the period ending July 15, 2011 , to be paid July 30, 2011. The federal taxes withheld totaled $43,500, of which $9,716 are FICA taxes. In addition, there were $7,800 in state income tax withholdings, and $10,160 in (pre-tax) defined contribution plan employee contributions (credit Vouchers Payable Pre-tax contributions). In addition, the employee contributions to participating health insurance plan w ere $4,549 (credit Vouchers PayablePre-tax 132 contributions). The net pay was $60,991. Journalize the entry in the General Fund. July 30, 2011. The City received a letter from the U. S. Department of Homeland Security indicating that the City would be granted up to $6,000,000 for qualified disaster recovery expenditures made between October 1, 2011 and September 30, 2012. The City has been using federal money since the flood in 2008 and has been using the funds to pay for the construction of a bridge that was destroyed by the flood. The $6,000,000 is fully expected to be received in full in October; once the monies are received in the Special Revenues Fund, they will then be transferred to the Capital Projects Fund. Record the journal entry to recognize the receivable for the federal disaster money. July 30, 2011. Record the remittance of the net pay from the June 29, 2011 employee payroll accrual in the General Fund. July 30, 2011. Record the employer payroll entry to : Match, dollar-for-dollar, the pre-tax retirement contribution contained in the employee entry (credit Vouchers Payable-Pretax Retirement), record the FICA tax match, accrue FUTA payments of $4,900, SUTA p ayments of $10,358, and accrue $12,100 in the employer-portion of the 132 medical payments (credit Vouchers Payable--132 Contributions) in the General Fund. July 30, 2011. Record the entry in the General Fund to disburse the employer payroll taxes and contributions. August 3, 2011. Received 90 percent of the open purchase orders made at the end of FY 2011. Journalize the receipt of the goods in the General Fund. August 4, 2011. Received $11,350 in revenues for charges for services fr om the following programs/functions: $2,520 for cultural services; $1,018 for public health; $212 for parks and recreation; $3,089 for public safety; and $4,511 for general government. Journalize the cash receipts entry in the General Fund. August 7, 2011. Received the invoice for the goods received on August 3, 2011 in the amount of $954,361, which is due August 16, 2011. The cost of goods ordered and received was allocated to the following programs/functions as follows: $281,409 for cultural services; $301,479 for public health; $1,063 for parks and recreation; $114,210 for public safety; and $256,200 for general government. Journalize the invoice in the General Fund. August 7, 2011. Journalize the invoice for the goods received on August 3, 2011 at the governmental act ivities (government -wide level), which is due on August 16, 2011. August 14, 2011. Received proceeds of a $5,000,000 bond issued at 1.01. Journalize the receipt of the proceeds in the General Fund and at the governmental activities (government -wide level). August 16, 2011. Disbursed the payment for the vouchers from August 7, 2011 at the governmental activities (government -wide level). August 31, 2011. Approximately 94 percent of the property taxes due were received. Journalize the receipt of the taxes at the governmental activities (government -wide level). September 1, 2011. The uncollected portion of the property taxes became delinquent and notices of delinquency were mailed. Journalize the delinquent tax re-class entry in the General Fund. September 2, 2011. Interest and penalties of $7,200 were assessed. It was estimated that approximately $1,100 would be uncollectible. Journalize the interest and penalties at the governmental activities (government -wide level). September 23, 2011. Issued $20,000 in tax anticipation notes, due November 23, 2011, at an annual interest rate of 6.5 percent. Journalize the issuance of the tax anticipation notes in the General Fund. September 30, 2011. Property taxes were assessed with a net levy of $680,000, with estimated uncollectible taxes at 6 percent. Journalize the issuance of the tax assessments in the General Fund and at the governmental activities (government -wide level). October 4, 2011. The City of Iowa City issued purchase orders in the following amounts in Exhibit 2 below: Exhibit 2 General Government Public Safety Parks and Recreation Public Health Estimated Cost $ 360,930 160,356 58,100 424,800 $ 1,004,186 Prepare the journal entry in the General Fund and at the governmental activities (government wide level). October 9, 2011. Received goods from the October 4, 2011 order , as indicated in Exhibit 3. Prepare the journal entry in the General Fund to record the receipt of the goods. Exhibit 3 General Government Public Safety Parks and Recreation Public Health $ $ Actual Estimated Cost Cost 360,843 $ 360,930 160,460 160,356 58,220 58,100 424,860 424,800 1,004,383 $ 1,004,186 October 9, 2011. The invoices were received, as indicated in Exhibit 3. $25,745 of the total invoices was from internal orders from the City of Iowa City's Internal Services Fund. The remaining amount was owed to external vendors. Prepare the journal entry in the General Fund and at the governmental activities (government -wide level) to record the monies owed. October 10, 2011. Calculate in good form (well-labeled) the amount of available appropriations on this date. October 21, 2011. Due to slowing economic activity, the FY 2012 budget was amended with a $3,200,000 reduction in estimated revenues and a $2,900,000 rescission in unallotted appropriations. Prepare the journal entry in the General Fund to record this budget amendment. October 24, 2011. Collected the appropriated federal grant monies due from the U.S. Department of Homeland Security. Journalize the collection of the grant monies in the Special Revenues Fund. October 31, 2011. Collected 70 percent of the delinquent taxes from the September 1 delinquency notice that was mailed. Prepare the journal entry in the General Fund to record the collection of the taxes. November 1, 2011. Wrote off $4,960 of the delinquent taxes owed to the City of Iowa City and $1,400 in interest and penalties receivable using the allowance method. Prepare the journal entry in the General Fund to record the write-off. November 14, 2011. Of the total disaster grant monies received on October 24 th, the Special Revenues Fund transferred $5,800,000 to the Capital Projects Fund and the remainder to the General Fund. Prepare the journal entry in the Special Revenues Fund to record the transfer. November 14, 2011. Collected the transfer monies from the Special Revenues Fund in the General Fund. Record the transfer in the General Fund. November 23, 2011. Repaid the tax anticipation notes, with interest. Journalize the repayment of the tax anticipation notes in the General Fund. Note: Several other transactions occurred from November, 2011 to June 30, 2012, which you are not asked to record. June 30, 2012. In Exhibit 4 below, the City of Iowa City had the following pre-closing trial balance in the General Fund: Exhibit 4 Cash Taxes receivable--current Estimated uncollectible current taxes Inventory of Supplies Due to Federal Government Vouchers payable Reserve for encumbrances--2012 Fund balance Expenditures--2011 Expenditures--2012 Other Financing Sources Other Financing Uses Revenues Unallotted Appropriations Allotments Encumbrances--2012 Estimated Revenues Estimated Other Financing Sources Estimated Other Financing Uses Budgetary Fund Balance $ Debit 1,039,434 Credit 2,012 $ 23,500 34,841 711,092 1,056,845 44,730,620 5,000,000 26,500 46,830,400 0 45,800,000 711,092 41,000,000 5,000,000 26,500 173,500 June 30, 2011. Prepare the closing entry for the budgetary accounts in the General Fund from Exhibit 4 above. Note: Do not include encumbrances in this entry. Also, note that Unallotted Appropriations have been allocated and the balance is $0; therefore, close Allotments in this entry in place of Unallotted Appropriations. June 30, 2011. Prepare the closing entry for the remaining temporary accounts in the General Fund from Exhibit 4 above. Close encumbrances in this entry