SIM 1 Budgetary and Actoivity accounting F8 M7

The following transactions relate to the general fund of the city of Lost Angels for the year ending December 31, 2020. Prepare a statement of revenues, expenditures, and other changes in fund balance for the general fund for the period to be included in the fund financial statements. Assume that the fund balance at the beginning of the year was $180,000. Assume also that the city applies the purchases method to supplies. Receipt within 60 days serves as the definition of available resources. Collects property tax revenue of $700,000. A remaining assessment of $100,000 will be collected in the subsequent period. Half of that amount should be received within 30 days, and the remainder approximately five months after the end of the year. Spends $200,000 on three new police cars with 10-year lives. The anticipated price was $207,000 when the cars were ordered. The city calculates all depreciation using the straight-line method with no expected residual value. The city applies the…

The following transactions relate to the general fund of the city of Lost Angels for the year ending December 31, 2020. Prepare a statement of revenues, expenditures, and other changes in fund balance for the general fund for the period to be included in the fund financial statements. Assume that the fund balance at the beginning of the year was $180,000. Assume also that the city applies the purchases method to supplies. Receipt within 60 days serves as the definition of available resources. Collects property tax revenue of $700,000. A remaining assessment of $100,000 will be collected in the subsequent period. Half of that amount should be received within 30 days, and the remainder approximately five months after the end of the year. Spends $200,000 on three new police cars with 10-year lives. The anticipated price was $207,000 when the cars were ordered. The city calculates all depreciation using the straight-line method with no expected residual value. The city applies the…

Prepare journal entries to record the following events. Identify every fund(s) or group of accounts in which an entry is made.a. The city authorized the construction of a city hall to be financed by a $6,000,000 contribution of the general fund and the proceeds of a $30,000,000 general obligation serial bond issue. Both amounts are budgeted to be received in the current year. Expenditures during the current year are estimated to be $14,000,000. Budgetary accounts are used.b. The general fund remits the $6,000,000.c. The bonds are sold for 99; issue costs totaled $50,000.d. A contract is signed with Mader Construction Company for construction of the city hall for an estimated contract cost of $32,000,000. The contract was authorized by a city official delegated authority by the city council.e. By year-end, $7,000,000 is paid against the contract withMader Construction Company.

1. Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statements. The City pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the General Fund had earned $120,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). What entry, if any, should be made in the City s General Fund? a. Debit Expenditures; Credit Wages and Salaries Payable. b. Debit Expenses; Credit Wages and Salaries Payable. c. Debit Expenditures; Credit Encumbrances. d. No entry is required.

The City of Jonesboro engaged in the following transactions during the fiscal year ended September 30, 2018.  Record the following transactions related to interfund transfers. Be sure to indicate in which fund the entry is being made. a. The city transferred $400,000 from the general fund to a debt service fund to make the interest payments due during the fiscal year. The payments due during the fiscal year were paid. The city also transferred $200,000 from the general fund to a debt service fund to advance-fund the $200,000 interest payment due October 15, 2019. b. The city transferred $75,000 from the Air Operations Special Revenue Fund to the general fund to close out the operations of that fund. c. The city transferred $150,000 from the general fund to the city’s Electric Utility Enterprise Fund to pay for the utilities used by the general and administrative offices during the year. d. The city transferred the required pension contribution of $2 million from the general fund to the…

The City of Bayamon maintains its books and records in a way that facilitates the preparation of the financial statements of the funds. Prepare all the journal entries necessary to record the city's revenue from the following transactions for the year ended December 31, 20X7. On January 15, the city received notification that it had been awarded a $300,000 federal grant to assist in the operation of its Meals on Wheels program. The federal government expects to send the cash in about three months. This is not a rebate-type grant and all eligibility requirements have been met. In February, the city spent $31,000 on Meals on Wheels. $1,800 parking tickets were issued in March. Payment must be made within 30 days, when the city has an enforceable legal claim to the amounts. In April, the city received the $300,000 grant from the federal government. In April, the city received $1,200 in cash for parking tickets issued in March. Additionally, $100 in fines were contested and court dates…

Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements. The government sells $900,000 in bonds at face value to finance construction of a warehouse. A $1.1 million contract is signed for construction of the warehouse. The commitment is required, if allowed. A $130,000 transfer of unrestricted funds was made for the eventual payment of the debt in (a). Equipment for the fire department is received with a cost of $12,000. When it was ordered, an anticipated cost of $11,800 had been recorded. Supplies to be used in the schools are bought for $2,000 cash. The consumption method is used. A state grant of $90,000 is awarded to supplement police salaries. The money will be paid to reimburse the government after the supplement payments have been made to the police officers. Property tax assessments are mailed to citizens of the government. The total assessment is $600,000,…

The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations: 1. Deferred inflows of resources-property taxes of $69,400 at the end of the previous fiscal year were recognized as property tax revenue in the current yearAc€?cs Statement of Revenues, Expenditures, and Changes in Fund Balance. 2. The City levied property taxes for the current fiscal year in the amount of $10,000,000. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $600,000 of the taxes had not been collected. It was estimated that $320,000 of that amount would be collected during the 60-day period after the end of the fiscal year and that $80,000 would be collected after that time. The City had recognized the maximum of property taxes allowable under…

1. Employees of the General Fund of Scott City earn ten days of vacation for each 12 months of employment. The City permits employees to carry the vacation days forward as long as they wish. During the current year employees earned $800,000 of vacation benefits, of which the City estimates that $500,000 will be taken in the next year and the balance will be carried forward. Assuming that the City maintains its books and records in a manner that facilitates the preparation of its fund financial statements, which of the following entries is the correct entry in the General Fund to record the vacation pay earned during the current period? a. Debit Expenditures $800,000; Credit Vacation Pay Payable $800,000. b. Debit Expenditures $500,000; Credit Vacation Pay Payable $500,000. c. Debit Vacation Expense $800,000; Credit Vacation Pay Payable $800,000. d. No entry required.   2.Employees of the General Fund of Scott City earn ten days of vacation for each 12 months of employment. The City…

The City of Townsend's city council authorized the establishment of an internal service fund to provide human resource services to city departments. The following transactions took place in the inaugural month of Townsend's Human Resource internal service fund: 1. The General Fund transferred $100,000 to cover initial expenses. The transfer is not expected to be repaid. 2. The Human Resources Fund entered into a 2-year computer lease with an initial $5,000 payment. The present value of the remaining payments is $82.218 3. Salaries and wages paid to employees totaled $15,000. 4. Office supplies were purchased on account for $2,500. 5. Billings totaling $3,000 were received from the enterprise fund for utility charges 6. Billings to other departments for services provided to them were as follows: General Fund Special Revenue Fund 7. Closing entries were prepared Required $16,000 4,700 a-1. Assume all expenses at the government-wide level are charged to the General Government function.…

During the fiscal year ended 6/30/18, the Harriscity engaged in the following transactions.  REQUIRED:  Assume that the city maintains its books and records in a manner that facilitates the preparation of its governmental fund financial statements. Prepare all necessary journal entries that the city should make for each transaction.  Clearly indicate in which fund the entry is being made.  If no entry is required, write “No entry required.” a)In July 2017, the city issued $30 million in 6% general obligation term bonds to finance construction of a new building to house city offices.  The bonds were issued at a premium of $300,000. b)In September 2017, the city transferred $1.5 million from the general fund to cover the $0.9 million principal and $0.6 million interest payments due that month on debt issued in previous years. c)In September 2017, the city paid the principal and interest due from (b). d)In June 2018, the city transferred $3 million from the general fund to cover the $1.8…

The City of Soheil maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide financial statements.  Required:  You are to prepare, in journal form, worksheet adjustments for each of the following situations.   General fixed assets, as of the beginning of the year, which had not been recorded, were as follows: Land $  96,000,000 Buildings 480,000,000 Improvements other than buildings 270,000,000 Equipment 60,000,000 Accumulated depreciation, capital assets 150,000,000             During the year, expenditures for capital outlays amounted to $22,700,000. Of that amount, $10,600,000 was for buildings; $8,300,000 was for improvements other than buildings, $95,000 was capitalized interest and the remainder was for land.   The capital outlay expenditures outlined in (B) were completed at the end of the year (no depreciation until next year). For purposes of financial statement…

The City of Grinders Switch Maintains its books in a manner that facilitates the preparation of fund accounting statements and uses worksheet adjustments to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations. General fixed assets as of the beginning of the year, which had not recorded, were as follows:   Land                                                                                 $ 7,554,000 Buildings                                                                         $33,355,000 Improvements Other Than Buildings                       $14,820,000 Equipment                                                                       $11,690,000 Accumulated Depreciation, Capital Assets            $25,800,000   2. During the year, expenditures for Capital outlays amounted to $7,500,000. Of that amount $4,800,000 was for buildings; the remainder was for improvements other than buildings. 3. The Capital…

Prepare entries in general journal form to record the following transactions in the Roadway Fund general ledger accounts for City of Kettering for the fiscal year 2018. Use modified accrual accounting. At the beginning of the fiscal year, the fund $1,360,000 was offset by the assigned fund balance in the same amount. The city was awarded $4,200,000 for road inspections and repairs during the year. The award requires reimbursement for expenditures, not an allotment upfront. Work contracted for the year amounted to $4,175,000. Invoices received for the work performed totaled $4,150,000. $3,980,000 of that amount was paid in cash as of year-end. The state reimbursed the city $4,000,000 for the completed work before year-end. Prepare a statement of Revenues, Expenditures, and Changes in Fund Balance for the Roadway Fund.

The City of Algonquin maintains its books to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations: Deferred inflows of resources—property taxes of $73,500 at the end of the previous fiscal year were recognized as property tax revenue in the current year's Statement of Revenues, Expenditures, and Changes in Fund Balance. The City levied property taxes for the current fiscal year in the amount of $13,789,400. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $309,200 is thought to be uncollectible, $365,000 would likely be collected during the 60-day period after the end of the fiscal year, and $52,800 would be collected after that time. The City had recognized the maximum of property taxes allowable under modified accrual accounting. In addition to the expenditures…

The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government-wide statements. Deferred inflows of resources—property taxes of $51,200 at the end of the previous fiscal year were recognized as property tax revenue in the current year’s Statement of Revenues, Expenditures, and Changes in Fund Balance. The City levied property taxes for the current fiscal year in the amount of $10,000,000. When making the entries, it was estimated that 2 percent of the taxes would not be collected. At year-end, $200,000 is thought to be uncollectible, $349,000 would likely be collected during the 60-day period after the end of the fiscal year, and $53,800 would be collected after that time. The City had recognized the maximum of property taxes allowable under modified accrual accounting. In addition to the expenditures recognized under modified accrual accounting, the City computed that $29,000 should be…

The City of Greystone maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations: The City levied property taxes for the current fiscal year in the amount of $8,000,000. At year-end, $720,000 of the taxes had not been collected. It was estimated that $330,000 of that amount would be collected during the 60 days after the end of the fiscal year and that $360,000 would be collected after that time and the balance would be uncollectible. The City had recognized the maximum of property taxes allowable under modified accrual accounting. $255,000 of property taxes had been deferred at the end of the previous year and was recognized under modified accrual as revenue in the current year. In addition to the expenditures reported under modified accrual accounting, the city computed that an additional $104,000…

Journal entries to record miscellaneous transactions and events A city's Parks Department has these two General Fund appropriations: Parks department salaries and Parks department other than salaries. All of the following transactions and events are applicable to calendar year 2021. 1. Salaries of $21,000 were paid in October 2021. 2. A purchase order for trees was placed at an estimated cost of $3,000. 3. The trees ordered in the previous transaction were received and accepted. The invoice was approved for payment. 4. The invoice received in the previous transaction was paid. 5. An invoice for $2,600 for November electricity services was approved for payment in early December 2021. 6. Parks Department employees worked during the last week of December 2021 and earned $12,000. They will be paid in early January 2022. 7. An invoice for $3,900 for December electricity services was received in early January 2022.

2. The City of Katerah maintains its books and records in a manner that facilitates the preparation of fund financial statements. Prepare all necessary journal entries to record the city’s revenues from the following transactions for the year ended December 31, 2017. a.) On January 15, the city received notification that it had been awarded a $300,000 federal grant to assist in the operation of its “Meals on Wheels” program. The federal government expects to send the cash in about three months. This is not a reimbursement type grant and all eligibility requirements have been met. b.) In February the city spent $31,000 on “Meals on Wheels.” c.) In March, fines of $1,800 were issued for parking tickets. Payment must be made within 30 days, when the city has an enforceable legal claim to the amounts. d.) In April, the city received the $300,000 grant from the federal government. e.) In April, the city received $1,200 cash in payment of parking tickets issued in March. In addition, $100 of…

The City of Townsend’s city council authorized the establishment of an internal service fund to provide human resource services to city departments.The following transactions took place in the inaugural month of Townsend’s Human Resource internal service fund: The General Fund transferred $100,000 to cover initial expenses. The transfer is not expected to be repaid. The Human Resources Fund entered into a 2-year computer lease with an initial $5,000 payment. The present value of the remaining payments is $82,218. Salaries and wages paid to employees totaled $15,000. Office supplies were purchased on account for $2,500. Billings totaling $3,000 were received from the enterprise fund for utility charges. Billings to other departments for services provided to them were as follows:         General Fund $ 16,000   Special Revenue Fund   4,700     Closing entries were prepared. Required a-1. Assume all expenses at the government-wide level are charged to the General…

On April 1, 2020, the City purchased a swimming pool from a private operator for $500,000 and created a Swimming Pool (Enterprise) Fund. The city has a calendar year as its fiscal year. During the year ended December 31, 2020, the following transactions occurred related to the City’s Swimming Pool Fund: On April 1, 2020, $300,000 was provided by a one-time contribution from the General Fund, and $200,000 was provided by a loan from a local bank (secured by a note), both of which were received in cash. The loan (Notes Payable) has an annual interest rate of 5%, payable semiannually on October 1 and April 1. The purchase of the pool was recorded (paid in cash). Based on an appraisal, it was decided to allocate $100,000 to the land, $300,000 to improvements other than buildings (the pool), and $100,000 to the building. Charges for services amounted to $270,000, all received in cash. Salaries paid to employees amounted to $172,500, all paid in cash, of which $100,000 was cost of services…

Craven City has an electric utility fund that is managed by Tara Perkins. Show the journal entries that would be recorded in the general fund for the following transactions that occurred during the fiscal year ended June 30, 2021 and identify the income statement effect of each entry: 1. The electric utility fund provided electric services to city departments accounted for in the general fund. The electric utility fund bills $100,000 for these services. 2. The general fund pays the amount owed.

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2019, the first day of the fiscal year: During the year ended June 30, 2020, the following transactions and events occurred in the Town of Weston Water Utility Fund: Accrued expenses at July 1 were paid in cash. Billings to nongovernmental customers for water usage for the year amounted to $1,423,000; billings to the General Fund amounted to $118,000. Liabilities for the following were recorded during the year: Materials and supplies $ 202,000  Costs of sales and services 376,000  Administrative expenses 211,000  Construction work in progress 230,000  Materials and supplies were used in the amount of $294,000, all for costs of sales and services. After collection efforts were unsuccessful, $14,900 of old accounts receivable were written off. Accounts receivable collections totaled $1,518,000 from nongovernmental customers and $51,100 from the General Fund. $1,092,600 of accounts payable were paid…

Prepare journal entries for the City of Pudding's governmental funds to record the following transactions for government-wide financial statements.   The city transfers cash of $193,000 from its general fund to provide permanent financing for a municipal swimming pool that will be maintained as an enterprise fund. The city receives a state grant of $40,000 that must be spent to promote recycling by the citizens. The first $6,000 of the state grant received in (g) is expended as intended.

Ben City maintains its books and records in a manner that facilitates the preparation of fund financial statements. Prepare all necessary journal entries to record the following events related to property tax revenues for the year ended December 31, 2017. The city has adopted the 60-day rule for property tax revenue recognition. a. On January 3, 2017 the city council levied property taxes of $2 million to support general government operations, due in two equal installments on June 20 and December 20, 2017. The property taxes were levied to finance the 2017 budget, which had been adopted on November 3, 2016. Historically 2 percent of property taxes are uncollectible. b. The city collected the following amounts related to property taxes Delinquent 2016 taxes collected in January 2017 $ 22,000 Delinquent 2016 taxes collected in March 2017 $ 25,000 2017 taxes collected in June 2017 $ 1,080 2017 taxes collected in December 2017 $ 800,000 Delinquent 2017 taxes collected in January 2018 $…

The following transactions relate to the General Fund of the city of Lost Angels for the year ending December 31, 2017. Prepare a statement of revenues, expenditures, and other changes in fund balance for the general fund for the period to be included in the fund financial statements. Assume that the fund balance at the beginning of the year was $180,000. Assume also that the purchases method is applied to the supplies and that receipt within 60 days is used as the definition of avail-able resources.a. Collected property tax revenue of $700,000. A remaining assessment of $100,000 will be collected in the subsequent period. Half of that amount should be collected within 30 days, and the remainder will be received in about five months after the end of the year.b. Spent $200,000 on four new police cars with 10-year lives. A price of $207,000 had been anticipated when the cars were ordered. The city calculates all depreciation using the straight-line method with no salvage value. The…

On June 1, 2020, the City of Cape May authorized the construction of a police station at an expected cost of $250,000. Financing will be provided through transfers from a Special Revenue Fund. The following transactions occurred during the fiscal year beginning June 1, 2020, relating to the Capital Project Fund. 1. The $250,000 receivable from the Special Revenue Fund was recorded. 2. The Special Revenue Fund transferred $125,000 to the Capital Project Fund to begin construction on the police station. 3. The Capital Project Fund invested the transfer of monies in a six-month certificate, at 5%. 4. A contract in the amount of $250,000 was let to the lowest bidder. 5. Architect and legal fees in the amount of $3,125 were approved for payment. There was no encumbrance for these expenditures. 6. Contract billings in the amount of $250,000 were approved for payment on the completion of the police station and the encumbrance was removed. 7. The six-month certificate was redeemed at maturity…

Prepare the journal entries for the following activity in the General Fund of the City of Rivers.   On 1/15/20 the city issues purchases orders in the amount of $40,000 to buy two vehicles ($20,000 each) On 2/25/20 the city receives 1 vehicle. The invoice amount is $21,000. On 3/10/20 the city pays the invoice.

The City of Wolfe issues its financial statements for Year 4 (assume that the city uses a calendar year). The city's general fund is composed of two functions: (1) education and (2) parks. The city also utilizes capital projects funds for ongoing construction and an enterprise fund to account for an art museum. The city also has one discretely presented component unit. The government-wide financial statements indicate the following Year 4 totals. Education had net expenses of $636,000. Parks had net expenses of $150,000. Art museum had net revenues of $64,500. General revenues were $873,500. The overall increase in net position for the city was $152,000. The fund financial statements for Year 4 indicate the following: The general fund had an increase of $43,250 in its fund balance. The capital projects fund had an increase of $51,750 in its fund balance. The enterprise fund had an increase of $79,250 in its net position balance. Officials for the City of Wolfe define "available" as…

The City of Wolfe issues its financial statements for Year 4 (assume that the city uses a calendar year). The city’s general fund is composed of two functions: (1) education and (2) parks. The city also utilizes capital projects funds for ongoing construction and an enterprise fund to account for an art museum. The city also has one discretely presented component unit.   The government-wide financial statements indicate the following Year 4 totals. Education had net expenses of $684,000. Parks had net expenses of $172,000. Art museum had net revenues of $69,750. General revenues were $990,250. The overall increase in net position for the city was $204,000.   The fund financial statements for Year 4 indicate the following: The general fund had an increase of $46,250 in its fund balance. The capital projects fund had an increase of $45,250 in its fund balance. The enterprise fund had an increase of $84,750 in its net position balance.   Officials for the City of…