The General Fund of a city had the following post-closing trial balance at September 30 2020. the end of its fiscal year: Debits Credits Cash 100,000 Taxes Receivable – Delinquent 583,000 Allowance for Uncollectible Delinquent Taxes 189,000 Interest and Penalties Receivable 26,280 Allowance for Uncollectible Interest & Penalties 11,160 Inventory of Supplies 16,100 Vouchers Payable 148,500 Due to Federal Government 62,490 Fund Balance – Nonspendable – Inventory Supplies 16,100 Fund Balance – Unassigned 298,130 725,380 725,380 During the year ended September 30, 2021, the following transactions, in summary form. with subsidiary ledger detail omitted, occurred: The budget for FY 2021 provided the General Fund estimated revenues totaling $3,140,000 and appropriations totaling $3,100,000. The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note. The loan 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) The property tax levy for FY 2021 was recorded Net assets 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 levy would be uncollectible. Purchase orders and contracts were issued to vendors and others in the amount of $2,060,000. The County Board of Review discovered unassessed properties with a total taxable value of $500,000. The owners of these properties were charged with taxes at the city’s General Fund rate of $5 per $100 assessed value. (You need not adjust the Allowance for Uncollectible Current Taxes account). $1,961,000 of current taxes, $383,270 of delinquent taxes, and $20,570 of interest and penalties were collected. Additional interest and penalties on delinquent taxes were accrued in the amount of $38,430, of which 30 percent was estimated to be uncollectible. Because of a change in state law, the city was notified that it will receive $80,000 less in inter-governmental revenues than was budgeted. 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 employees in cash. The employer’s FICA tax liability was recorded for $62,690. Revenues from sources other than taxes were collected in the amount of $947,000. Amounts due the federal government as of September 30, 2021, and amounts due for FICA taxes, and state and federal withholding taxes during the year were vouchered. 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. Vouchers payable totaling $2,301,660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures). The tax anticipation note of $500,000 was repaid. All unpaid current year’s property taxes became delinquent. The balances of the current tax receivables and related uncollectible were transferred to delinquent accounts. A physical inventory of materials and supplies at September 30, 2021, showed a total of $19,100. 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 us 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 Expenses were debited in the governmental activities journal). Required a. Record in general journal form the effect of the above transaction on the General Fund and governmental activities for the year ended September 30, 2021. Do not record subsidiary ledger debits and credits.

The General Fund of a city had the following post-closing trial balance at September 30 2020. the end of its fiscal year: Debits Credits Cash 100,000 Taxes Receivable – Delinquent 583,000 Allowance for Uncollectible Delinquent Taxes 189,000 Interest and Penalties Receivable 26,280 Allowance for Uncollectible Interest & Penalties 11,160 Inventory of Supplies 16,100 Vouchers Payable 148,500 Due to Federal Government 62,490 Fund Balance – Nonspendable – Inventory Supplies 16,100 Fund Balance – Unassigned 298,130 725,380 725,380 During the year ended September 30, 2021, the following transactions, in summary form. with subsidiary ledger detail omitted, occurred: The budget for FY 2021 provided the General Fund estimated revenues totaling $3,140,000 and appropriations totaling $3,100,000. The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note. The loan 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) The property tax levy for FY 2021 was recorded Net assets 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 levy would be uncollectible. Purchase orders and contracts were issued to vendors and others in the amount of $2,060,000. The County Board of Review discovered unassessed properties with a total taxable value of $500,000. The owners of these properties were charged with taxes at the city’s General Fund rate of $5 per $100 assessed value. (You need not adjust the Allowance for Uncollectible Current Taxes account). $1,961,000 of current taxes, $383,270 of delinquent taxes, and $20,570 of interest and penalties were collected. Additional interest and penalties on delinquent taxes were accrued in the amount of $38,430, of which 30 percent was estimated to be uncollectible. Because of a change in state law, the city was notified that it will receive $80,000 less in inter-governmental revenues than was budgeted. 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 employees in cash. The employer’s FICA tax liability was recorded for $62,690. Revenues from sources other than taxes were collected in the amount of $947,000. Amounts due the federal government as of September 30, 2021, and amounts due for FICA taxes, and state and federal withholding taxes during the year were vouchered. 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. Vouchers payable totaling $2,301,660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures). The tax anticipation note of $500,000 was repaid. All unpaid current year’s property taxes became delinquent. The balances of the current tax receivables and related uncollectible were transferred to delinquent accounts. A physical inventory of materials and supplies at September 30, 2021, showed a total of $19,100. 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 us 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 Expenses were debited in the governmental activities journal). Required a. Record in general journal form the effect of the above transaction on the General Fund and governmental activities for the year ended September 30, 2021. Do not record subsidiary ledger debits and credits.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The General Fund of a city had the following post-closing trial balance at September 30 2020. the end of its fiscal year:

Debits Credits

Cash 100,000

Taxes Receivable – Delinquent 583,000

Allowance for Uncollectible Delinquent Taxes 189,000

Interest and Penalties Receivable 26,280

Allowance for Uncollectible Interest & Penalties 11,160

Inventory of Supplies 16,100

Vouchers Payable 148,500

Due to Federal Government 62,490

Fund Balance – Nonspendable – Inventory Supplies 16,100

Fund Balance – Unassigned 298,130

725,380 725,380

During the year ended September 30, 2021, the following transactions, in summary form. with subsidiary ledger detail omitted, occurred:

The budget for FY 2021 provided the General Fund estimated revenues totaling $3,140,000 and appropriations totaling $3,100,000.
The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note. The loan 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)
The property tax levy for FY 2021 was recorded Net assets 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 levy would be uncollectible.
Purchase orders and contracts were issued to vendors and others in the amount of $2,060,000.
The County Board of Review discovered unassessed properties with a total taxable value of $500,000. The owners of these properties were charged with taxes at the city’s General Fund rate of $5 per $100 assessed value. (You need not adjust the Allowance for Uncollectible Current Taxes account).
$1,961,000 of current taxes, $383,270 of delinquent taxes, and $20,570 of interest and penalties were collected.
Additional interest and penalties on delinquent taxes were accrued in the amount of $38,430, of which 30 percent was estimated to be uncollectible.
Because of a change in state law, the city was notified that it will receive $80,000 less in inter-governmental revenues than was budgeted.
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 employees in cash.
The employer’s FICA tax liability was recorded for $62,690.
Revenues from sources other than taxes were collected in the amount of $947,000.
Amounts due the federal government as of September 30, 2021, and amounts due for FICA taxes, and state and federal withholding taxes during the year were vouchered.
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.
Vouchers payable totaling $2,301,660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures).
The tax anticipation note of $500,000 was repaid.
All unpaid current year’s property taxes became delinquent. The balances of the current tax receivables and related uncollectible were transferred to delinquent accounts.
A physical inventory of materials and supplies at September 30, 2021, showed a total of $19,100. 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 us 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 Expenses were debited in the governmental activities journal).

Required

a. Record in general journal form the effect of the above transaction on the General Fund and governmental activities for the year ended September 30, 2021. 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 September 30, 2021

d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended September 30, 2021. Do not prepare the government-wide financial statements.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here