Following are descriptions of transactions and other financial events for the City of Tetris for the year ending December 2017. Not all transactions have been included here. Only the general fund formally records a budget. No encumbrances were carried over from 2016.Paid salary for police officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,000Received government grant to pay ambulance drivers . .. . . . . . . . 40,000Estimated revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232,000Received invoices for rent on equipment used by fire department during last four months of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000Paid for newly constructed city hall . . . . . . . . . . . . . . . . . .. . . . . . . . . 1,044,000Made commitment to acquire ambulance . . . . . . . . . . . . . . 111,000Received cash from bonds sold for construction purposes . . . . . 300,000Placed order for new sanitation truck . . . . . . . . . . . . . . . . . . . . . . . . . . 154,000Paid salary to ambulance drivers—money derived from state government grant given for that purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000Paid for supplies for school system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000Made transfer from General Fund to eventually pay off a long-term debt . . . . . . . 33,000Received but did not pay for new ambulance . . . . . . . . . . . . . . . . 120,000Levied property tax receivables for 2017. City anticipates that 95% ($190,000) will be collected during the year and 5% will be uncollectible . . . . . . . . . . . . . . . 200,000Acquired and paid for new school bus . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000Received cash from business licenses and parking meters (not previously accrued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000Approved appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,000The following questions are independent although each is based on the preceding information. Assume that the government is preparing information for its fund financial statements.a. What is the balance in the Budgetary Fund Balance account for the budget for the year? Is it a debit or credit?b. Assume that 60 percent of the school supplies are used during the year so that 40 percent remain. If the consumption method is being applied, how is this recorded?c. The sanitation truck that was ordered was not received before the end of the year. The commit-ment will be honored in the subsequent year when the truck arrives. What reporting is made at the end of 2015?d. Assume that new ambulance was received on December 31, 2017. Provide all necessary journal entries on that date.e. Prepare all journal entries that should have been made when the $33,000 transfer was made for the eventual payment of a long-term debt.f. What amount of revenue would be recognized for the period? Explain the composition of this total.g. What are the total expenditures? Explain the makeup of this total. Include response to (b) here.h. What journal entry or entries were prepared when the bonds were issued?
Following are descriptions of transactions and other financial events for the City of Tetris for the
year ending December 2017. Not all transactions have been included here. Only the general fund formally records a budget. No encumbrances were carried over from 2016.
Paid salary for police officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,000
Received government grant to pay ambulance drivers . .. . . . . . . . 40,000
Estimated revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232,000
Received invoices for rent on equipment used by fire department during last four months of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Paid for newly constructed city hall . . . . . . . . . . . . . . . . . .. . . . . . . . . 1,044,000
Made commitment to acquire ambulance . . . . . . . . . . . . . . 111,000
Received cash from bonds sold for construction purposes . . . . . 300,000
Placed order for new sanitation truck . . . . . . . . . . . . . . . . . . . . . . . . . . 154,000
Paid salary to ambulance drivers—money derived from state government grant given for that purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000
Paid for supplies for school system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000
Made transfer from General Fund to eventually pay off a long-term debt . . . . . . . 33,000
Received but did not pay for new ambulance . . . . . . . . . . . . . . . . 120,000
Levied property tax receivables for 2017. City anticipates that 95% ($190,000) will be collected during the year and 5% will be uncollectible . . . . . . . . . . . . . . . 200,000
Acquired and paid for new school bus . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Received cash from business licenses and parking meters (not previously
accrued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000
Approved appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,000
The following questions are independent although each is based on the preceding information. Assume
that the government is preparing information for its fund financial statements.
a. What is the balance in the Budgetary Fund Balance account for the budget for the year? Is it a debit or credit?
b. Assume that 60 percent of the school supplies are used during the year so that 40 percent remain.
If the consumption method is being applied, how is this recorded?
c. The sanitation truck that was ordered was not received before the end of the year. The commit-
ment will be honored in the subsequent year when the truck arrives. What reporting is made at
the end of 2015?
d. Assume that new ambulance was received on December 31, 2017. Provide all necessary journal
entries on that date.
e. Prepare all journal entries that should have been made when the $33,000 transfer was made for
the eventual payment of a long-term debt.
f. What amount of revenue would be recognized for the period? Explain the composition of this
total.
g. What are the total expenditures? Explain the makeup of this total. Include response to (b) here.
h. What
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