Week 2 Research Case #1 4-27. Operating Transactions and Financial Statements. (LO4-1 through LO4-3) The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Debits Credits Cash $276,120 Taxes Receivable-Delinquent 183,000 Allowance for Uncollectible Delinquent Taxes $21,960 Interest and Penalties Receivable 6,280 Allowance for Uncollectible Interest and Penalties 1,160 Inventory of Supplies 6,100 Vouchers Payable 48,500 Due to Federal Government 29,490 Deferred Inflows of Resources- Unavailable Revenues 166,160 Fund Balance-Nonspendable-Inventory of Supplies 6,100 Fund Balance-Unassigned 198,130 $471,500 $471,500 During the year ended June 30, 2020, the following transactions, in summary form, with the subsidiary ledger detail omitted, occurred: 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,140,000 and appropriations totaling $3,100,000. 2. The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). 3. The property tax levy for FY 2020 was recordeed. Net assessed valuation of taxable property for the year was $43,000,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,060,000. 5. $1,961,000 of current taxes, $103,270 of delinquent taxes, and $3,570 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $3,430, of which 30 percent was estimated to be uncollectible. 7. Because of a change in state law, the city was notified that it will receive $80,000 less in intergovernmental revenues than was budgeted. 8. Delinquent taxes of $12,792 were deeemed uncollectible and written off. The associated interest and penalties of $952 also were written off. 9. Total payroll during the year was $819,490. Of that amount, $62,690 was withheld for employees' FICA tax liability, $103,710 for employees' federal income tax liability, and $34,400 for state taxes; the balance was paid to employees in cash. 10. The employer's FICA tax liability was recorded for $62,690. 11. Revenues from sources other than taxes were collected in the amount of $947,000. 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and fedral withholding taxes during the year were vouchered. 13. Purchase orders and contracts encumbered in the amount of $1,988,040 were filled at a net cost of $1,987,570, which was vouchered. 14. Vouchers payable totaling $2,201,660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures). 15. The tax anticipation note of $500,000 was repaid.. 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $9,100. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal.) Required a. Record in general journal form the effect of the above transactions on the General Fund and governmental activities for the year ended June 30, 2020. Do not record subsidiary ledger debits and credits. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmentaal activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements.

4-9. Operating Transactions and Financial Statements, (LO4.1 through L04-3) The City of Castleton's General Pund had the following post.closing trial bal- ance at June 10, 2019, the end of its fiscal year Debits Credits 183000 $21.950 6,280 48.500 Interest and Penales Receivable Anclinance for Uncollection interest and Ponatury inventory of Supplies Vouchers Payable Due to Federal novommon Delerred tows or Resource Unavailable venues Fund Balance Nomendable.--Inventory of Supplies Fund balance-Unassigned 29.490 166 164 6.100 198.130 $471.500 1471.500 During the year ended June 30, 2020, the following transactions, in summary form, with subsidiary ledger detail omitted, occurred: 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3.140,000 and appropriations totaling $3.100,000 2. The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses General Government in the gov. ernmental activities journal). 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $43,000,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 4. Purchase orders and contracts were issued to vendors and others in the amount of $2.060,000. 5. $1,961,000 of current taxes, $103.270 of delinquent taxes, and $3.570 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $3,430, of which 30 percent was estimated to be uncollectible. 7. Because of a change in state law, the city was notified that it will receive $80,000 less in intergovernmental revenues than was budgeted. 8. Delinquent taxes of $12.792 were deemed uncollectible and written off. The associated interest and penalties of $952 also were written off. 9. Total payroll during the year was $819,490. Of that amount, $62.690 was withheld for employees' FICA tax liability, $103,710 for employees' fed- eral income tax liability, and $34,400 for state taxes; the balance was paid to employees in cash. 10. The employer's FICA tax liability was recorded for $62,690. 11. Revenues from sources other than taxes were collected in the amount of $947.000 - for God Operating etischestrate Transations and Financial Statements 169 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 13. Purchase orders and contracts encumbered in the amount of $1.988.040 were filled at a net cost of $1,987.570, which was vouchered. 14. Vouchers payable totaling $2.201.660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures). 15. The tax anticipation note of $500,000 was repaid. 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of 59.100. Inventory is recorded using the purchases method in the General Fund: the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inven- tory of Supplies was debited in the governmental activities journal.) Required a. Record in general journal form the effect of the above transactions on the General Fund and govemmental activities for the year ended June 30, 2020. Do not record subsidiary ledger debits and credits. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. 4-9. Operating Transactions and Financial Statements, (LO4.1 through L04-3) The City of Castleton's General Pund had the following post.closing trial bal- ance at June 10, 2019, the end of its fiscal year Debits Credits 183000 $21.950 6,280 48.500 Interest and Penales Receivable Anclinance for Uncollection interest and Ponatury inventory of Supplies Vouchers Payable Due to Federal novommon Delerred tows or Resource Unavailable venues Fund Balance Nomendable.--Inventory of Supplies Fund balance-Unassigned 29.490 166 164 6.100 198.130 $471.500 1471.500 During the year ended June 30, 2020, the following transactions, in summary form, with subsidiary ledger detail omitted, occurred: 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3.140,000 and appropriations totaling $3.100,000 2. The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses General Government in the gov. ernmental activities journal). 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $43,000,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 4. Purchase orders and contracts were issued to vendors and others in the amount of $2.060,000. 5. $1,961,000 of current taxes, $103.270 of delinquent taxes, and $3.570 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $3,430, of which 30 percent was estimated to be uncollectible. 7. Because of a change in state law, the city was notified that it will receive $80,000 less in intergovernmental revenues than was budgeted. 8. Delinquent taxes of $12.792 were deemed uncollectible and written off. The associated interest and penalties of $952 also were written off. 9. Total payroll during the year was $819,490. Of that amount, $62.690 was withheld for employees' FICA tax liability, $103,710 for employees' fed- eral income tax liability, and $34,400 for state taxes; the balance was paid to employees in cash. 10. The employer's FICA tax liability was recorded for $62,690. 11. Revenues from sources other than taxes were collected in the amount of $947.000 - for God Operating etischestrate Transations and Financial Statements 169 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 13. Purchase orders and contracts encumbered in the amount of $1.988.040 were filled at a net cost of $1,987.570, which was vouchered. 14. Vouchers payable totaling $2.201.660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures). 15. The tax anticipation note of $500,000 was repaid. 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of 59.100. Inventory is recorded using the purchases method in the General Fund: the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inven- tory of Supplies was debited in the governmental activities journal.) Required a. Record in general journal form the effect of the above transactions on the General Fund and govemmental activities for the year ended June 30, 2020. Do not record subsidiary ledger debits and credits. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements