Provide correct answer A city government starts with a balanced budget and no debt.During the fiscal year, it decides to spend $15 billion oninfrastructure and services while collecting $12 billion in taxrevenue. What will be the government's deficit?

Step 1: Given Value for Calculation Spending = s = $15 billionRevenue = r = $12 billion Step 2:…

Answered: A city government starts with a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. The City of Access collects its annual property taxes late in its fiscal year. Consequently, cach year it must finance part of its operating budget using tax anticipation notes. The notes are repaid upon collection of property taxes. On April 1, 2016, the City estimated that it will require OMR 2,500,000 to finance governmental activities for the remainder of the 2016 fiscal year. On that date, it had OMR 790,000 of cash on hand and OMR 830,000 of current liabilities. Collections for the remainder of FY 2016 from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at OMR 1,100,000. Required: Calculate the estimated amount of tax anticipation financing that will be required for the remainder of FY 2016. Show work in good form.
Shepherd City's original budget included a credit to fund balance of $20,000. During the year, the City recorded an additional entry that debited budgetary fund balance and credited estimated revenues. Which of the following accurately describes what happened? The estimated revenues decreased, reducing the City's projected surplus for the year. The estimated revenues decreased, improving the City's projected surplus for the year. The estimated revenues increased, reducing the City's projected surplus for the year. The estimated revenues increased, improving the City's projected surplus for the year.
Question: The city of San Fernando operates on a calendar year basis. John Perez, the governor, is particularly proud of his reputation for making sure the state lives within its means. He knows that revenues in 2018 are coming in at a slower pace than anticipated, and he fears that expenditures may exceed revenues for the first time in his tenure as governor. He seeks advice from his budget director, who says: “No problem. I’ll just tell the agencies not to send invoices for utilities, travel expenses, and professional services to the comptroller during November and December for payment. Because the state uses the modified accrual basis of accounting, the comptroller won’t charge the bills to 2018.” The elected state comptroller is responsible not only for paying the bills but also for preparing financial statements in accordance with GAAP. What should the comptroller do when he learns about the budget director’s idea?
Budget planners for a certain community have determined that $6,391,000 will be required to provide all government services next year. The total assessed property value in the community is $110,000,000. What tax rate is required to meet the budgetary demands? (Express your answer as a tax rate per $100 to two decimal places rounded up.) ______
Budget planners for a certain community have determined that $9,235,400 will be required to provide all government services next year. The total assessed property value in the community is $122,500,000. What tax rate is required to meet the budgetary demands? (Express your answer as a tax rate per $100 and round to the nearest hundredth)
Budget planners for a certain community have determined that $7,753,600 will be required to provide all government services next year. The total assessed property value in the community is $106,000,000. What tax rate is required to meet the budgetary demands? (Express your answer as a tax rate per $100 and round to the nearest hundredth.) A.$6.60 per $100 B.$7.31 per $100 C. $7.40 per $100 D. $7.75 per $100
Chesterfield County had the following transactions. A budget is passed for all ongoing activities. Revenue is anticipated to be $939,750, with approved spending of $594,000 and operating transfers out of $275,000. A contract is signed with a construction company to build a new central office building for the government at a cost of $6,000,000. The county previously recorded the budget for this project. Bonds are issued for $6,000,000 (face value) to finance construction of the new office building. The new building is completed. An invoice for $6,000,000 is received by the county and paid. Previously unrestricted cash of $1,350,000 is set aside by county officials to begin paying the bonds issued in (c). A portion of the bonds comes due, and $1,350,000 is paid. Of this total, $235,000 represents interest. The interest had not been previously accrued. Property tax levies are assessed. Total billing for this tax is $885,000. On this date, the assessment is a legally enforceable claim…
The general ledger of the County of Konstantin contains the following selected account balances: $91400 $35600 $16500 $5700 Appropriations Outstanding Encumbrances Expenditures Vouchers Payable Konstantin wants to order additional goods and services before the fiscal year end. What is the unencumbered balance (i.e., the remaining authority) of the budget that may be expended by Konstantin? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.
Tri-County Social Service Agency is a not-for-profit organization in the Midwest. Use the following information to complete the cash budget for the year ending December 31. The Board of Trustees requires that Tri-County maintain a minimum cash balance of $8,000. If cash is short, the agency may borrow from an endowment fund the amount required to maintain the $8,000 minimum. It is anticipated that the year will begin with an $11,000 cash balance. Contract revenue is received evenly during the year. Mental health income is expected to grow by $5,000 in the second and third quarters; no change is expected in the fourth quarter. Required: 2. Complete the cash budget for each quarter and the year as a whole. 3. Determine the amount that the agency will owe the endowment fund at year-end.
Tri-County Social Service Agency is a not-for-profit organization in the Midwest. Use the following Information to complete the cash budget for the year ending December 31. The Board of Trustees requires that Tri-County maintain a minimum cash balance of $8,000. If cash is short, the agency may borrow from an endowment fund the amount required to maintain the $8,000 minimum. It is anticipated that the year will begin with an $11,000 cash balance. Contract revenue is received evenly during the year. Mental health Income is expected to grow by $5,000 in the second and third quarters; no change is expected in the fourth quarter. Required: 2. Complete the cash budget for each quarter and the year as a whole. 3. Determine the amount that the agency will owe the endowment fund at year-end. Complete this question by entering your answers in the tabs below. Required 2 Required 3 Complete the cash budget for each quarter and the year as a whole. (Cash deficiency and repayments should be…
The City of Rio Rancho adopted the following budget for the calendar year 2020: Revenues: Property taxes Miscellaneous revenues Appropriations: General government salaries Public safety salaries Public safety supplies Culture and recreation salaries and supplies Required: $8,000,000 700,000 During the year the City decided to hold a special cultural event, which caused a need for additional police presence. To pay for the additional costs, the City Council revised the budget as follows: the appropriation for public safety salaries was increased by $30,000; the appropriation for culture and recreation salaries and supplies was increased by $25,000, and the appropriation for public safety supplies was decreased by $28,000. At the same time, because the event was expected to yield revenues, the Council increased estimated miscellaneous revenues by $20,000. a. b. 1,500,000 5,400,000 300,000 1,700,000 Prepare the general journal entry to record the budget. Prepare the general journal entry…

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A city government starts with a balanced budget and no debt. During the fiscal year, it decides to spend $15 billion on infrastructure and services while collecting $12 billion in tax revenue. What will be the government's deficit?