Fund Accounting Question

timer Asked: Feb 21st, 2016

Question description

1. The following information is provided about the Town’s General Fund operating statement and budgetary accounts for the fiscal year ended June 30, 2017. (Note: The Town has no restricted, committed, or assigned fund balances.) 
Estimated revenues $3,150,000 Revenues 3,190,000 Appropriations 3,185,000 Expenditures 3,175,000 
Fund Balance—Unassigned at the beginning of year had a $600,000 credit balance. The Budgetary Fund Balance (after the FY 2017 budget was recorded) had a $35,000 debit balance. 
Required Calculate the end-of-year balances for the Fund Balance—Unassigned and Budgetary Fund Balance accounts that would be reported on the town’s balance sheet prepared as of June 30, 2017. Show all necessary work. 
2. All revenues of the City are accounted for on the modified accrual basis. Below is shown a list of the City’s General Fund transactions of a revenue nature. State which ones should be recognized by the General Fund as a revenue in the year of occurrence. If any item is not a current revenue, state the proper treatment for that item. 1) Receipt of money from issue of tax anticipation notes. 2) Collection of taxes that had been written off in prior year. 3) Collection of current-year property taxes. 4) Collection of prior years' delinquent property taxes. 5) Receipt of money in prepayment of a property owner's next-year taxes. 6) Collection of accounts receivable for charges for services. 
The following is a pre-closing trial balance for the City's General Fund as of June 30, 2017: 
Debits Credits Cash $116,500 
Taxes Receivable—Current 29,000 
Allowance for Uncollectible Current Taxes $3,000
Accounts Payable 7,800
Due to Other Funds 5,500 
Tax Anticipation Notes Payable 50,000
Fund Balance—Unassigned 70,200
Budgetary Fund Balance 1,000
Estimated Revenues 100,000 
Revenues 102,000 
Appropriations 99,000
Expenditures 93,000 
Totals $338,500 $338,500 
What is the fund balance as of June 30, 2017, after all closing entries have been made? Show the work. 
4. During fiscal year 2017, the Town issued purchase orders to various vendors in the amounts shown for the following functions of the town: 
General Government $ 82,500 
Public Safety 148,700
Public Works 130,400
Culture and Recreation 97,300
Health and Welfare 94,800
Miscellaneous 14,200
Total $567,900 
All goods ordered during the year were received at the following actual costs: 
General Government $ 83,720
Public Safety 147,940
Public Works 131,140
Culture and Recreation 98,780 
Health and Welfare 93,970
Miscellaneous 14,300
Total $569,850 
a. Prepare a summary journal entry in the General Fund general journal to record the issuance of purchase orders during fiscal year 2017. (Subsidiary detail may be omitted.) 
b. Prepare summary journal entries in the General Fund general journal to record the receipt of and payment for goods during fiscal year 2017. (Subsidiary detail may be omitted.) 
5. The following transactions occurred for the City’s General Fund. 
a. The budget prepared for the fiscal year included Total estimated revenues of $2,774,000 and appropriations of $2,693,000. 
b. Encumbrances issued against the appropriations during the year were $931,000. 
c. The current year’s tax levy of $2,005,000 was recorded; uncollectibles were estimated as $65,000. 
d. Collections of delinquent taxes from prior years’ levies totaled $132,000; collections of the current year’s levy totaled $1,459,000. 
e. Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in Transaction (2) of this problem. The estimated liability was $851,200. Actual costs were $850,500. 
f. Revenue other than taxes collected during the year consisted of licenses and permits, $373,000; intergovernmental revenue, $400,000; and $66,000 of miscellaneous revenues. 
g. Payments on Vouchers Payable totaled $1,505,000. 
Prepare journal entries in the General Fund general journal to record the transactions. (Subsidiary detail may be omitted.)

Tutor Answer

(Top Tutor) Studypool Tutor
School: Carnegie Mellon University
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors