Transactions and Budgetary Comparison Schedules (LO4-1, LO4-3) The following transactions occurred during the 2020 fiscal year for the City of Evergreen. For budgetary purposes, the city reports encumbrances in the Expenditures section of its budgetary comparison schedule for the General Fund but excludes expenditures chargeable to a prior year’s appropriation. 1. The budget prepared for the fiscal year 2020 was as follows: Estimated Revenues: Taxes $1,943,000 Licenses and permits 372,000 Intergovernmental revenue 397,000 Miscellaneous 62,000 Total estimated revenues 2,774,000 Appropriations: General government 471,000 Public safety 886,000 Publics works 650,000 Health and welfare 600,000 Miscellaneous 86,000 Total appropriations 2,693,000 Budgeted increase in fund balance $81,000 2. Encumbrances issued against the appropriations during the year were as follows: General government $ 58,000 Public safety 250,000 Public works 392,000 Health and welfare 160,000 Miscellaneous 71,000 Total $ 931,000 3.The current year’s tax levy of $2,005,000 was recorded; uncollectibles were estimated as $65,000. 4. Tax collections of the current year’s levy totaled $1,459,000. The City also collected $132,000 in taxes from the prior year’s levy in the first 60 days after year end. (These delinquent collections had been anticipated prior to year-end.) 5. Personnel costs during the year were charged to the following appropriations in the amounts indicated. Encumbrances were not recorded for personnel costs. Because no liabilities currently exist for withholdings, you may ignore any FICA or federal or state income tax withholdings. (Expenditures charged to Miscellaneous should be treated as General Government expenses in the governmental activities general journal at the government-wide level.) General government $ 411,000 Public safety 635,000 Public works 254,000 Health and welfare 439,000 Miscellaneous 11,100 Credit to Vouchers Payable $1,750,100 6. Invoices for all items ordered during the prior year were received and approved for payment in the amount of $14,470. Encumbrances had been recorded in the prior year for these items in the amount of $14,000. The amount chargeable to each year’s appropriations should be charged to the Public Safety appropriation. 7. Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in Transaction (2) of this problem. The following appropriations were affected. Actual Liability Estimated Liability General government $ 52,000 $52,200 Public safety 236,000 240,900 Public works 360,000 357,000 Health and welfare 130,600 130,100 Miscellaneous 71,000 71,000 $850,500 $851,200 8. 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. For purposes of accounting for these revenues at the government-wide level, the intergovernmental revenues were operating grants and contributions for the Public Safety function. Miscellaneous revenues are not identifiable with any function and, therefore, are recorded as General Revenues at the governmentwide level. 9. Payments on Vouchers Payable totaled $2,505,000. Additional information follows: The General Fund Fund Balance—Unassigned account had a credit balance of $96,900 as of December 31, 2019; no entries have been made in the Fund Balance—Unassigned account during 2020. Required Record the preceding transactions in general journal form for fiscal year 2020 in both the General Fund and governmental activities general journals. Prepare a budgetary comparison schedule for the General Fund of the City of Evergreen for the fiscal year ending December 31, 2020, as shown in Illustration 4–6. Do not prepare a government-wide statement of activities because other governmental funds would affect that statement.
4-24: Transactions and Budgetary Comparison Schedules (LO4-1, LO4-3)
The following transactions occurred during the 2020 fiscal year for the City of Evergreen. For budgetary purposes, the city reports encumbrances in the Expenditures section of its budgetary comparison schedule for the General Fund but excludes expenditures chargeable to a prior year’s appropriation.
1. The budget prepared for the fiscal year 2020 was as follows:
|
Estimated Revenues: |
|
|
Taxes |
$1,943,000 |
|
Licenses and permits |
372,000 |
|
Intergovernmental revenue |
397,000 |
|
Miscellaneous |
62,000 |
|
Total estimated revenues |
2,774,000 |
|
Appropriations: |
|
|
General government |
471,000 |
|
Public safety |
886,000 |
|
Publics works |
650,000 |
|
Health and welfare |
600,000 |
|
Miscellaneous |
86,000 |
|
Total appropriations |
2,693,000 |
|
Budgeted increase in fund balance |
$81,000 |
2. Encumbrances issued against the appropriations during the year were as follows:
|
General government |
$ 58,000 |
|
Public safety |
250,000 |
|
Public works |
392,000 |
|
Health and welfare |
160,000 |
|
Miscellaneous |
71,000 |
|
Total |
$ 931,000 |
3.The current year’s tax levy of $2,005,000 was recorded; uncollectibles were estimated as $65,000.
4. Tax collections of the current year’s levy totaled $1,459,000. The City also collected $132,000 in taxes from the prior year’s levy in the first 60 days after year end. (These delinquent collections had been anticipated prior to year-end.)
5. Personnel costs during the year were charged to the following appropriations in the amounts indicated. Encumbrances were not recorded for personnel costs. Because no liabilities currently exist for withholdings, you may ignore any FICA or federal or state income tax withholdings. (Expenditures charged to Miscellaneous should be treated as General Government expenses in the governmental activities general journal at the government-wide level.)
|
General government |
$ 411,000 |
|
Public safety |
635,000 |
|
Public works |
254,000 |
|
Health and welfare |
439,000 |
|
Miscellaneous |
11,100 |
|
Credit to Vouchers Payable |
$1,750,100 |
6. Invoices for all items ordered during the prior year were received and approved for payment in the amount of $14,470. Encumbrances had been recorded in the prior year for these items in the amount of $14,000. The amount chargeable to each year’s appropriations should be charged to the Public Safety appropriation.
7. Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in Transaction (2) of this problem. The following appropriations were affected.
|
|
Actual Liability |
Estimated Liability |
|
General government |
$ 52,000 |
$52,200 |
|
Public safety |
236,000 |
240,900 |
|
Public works |
360,000 |
357,000 |
|
Health and welfare |
130,600 |
130,100 |
|
Miscellaneous |
71,000 |
71,000 |
|
|
$850,500 |
$851,200 |
8. 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. For purposes of accounting for these revenues at the government-wide level, the intergovernmental revenues were operating grants and contributions for the Public Safety function. Miscellaneous revenues are not identifiable with any function and, therefore, are recorded as General Revenues at the governmentwide level.
9. Payments on Vouchers Payable totaled $2,505,000.
Additional information follows: The General Fund Fund Balance—Unassigned account had a credit balance of $96,900 as of December 31, 2019; no entries have been made in the Fund Balance—Unassigned account during 2020.
Required
- Record the preceding transactions in general journal form for fiscal year 2020 in both the General Fund and governmental activities general journals.
- Prepare a budgetary comparison schedule for the General Fund of the City of Evergreen for the fiscal year ending December 31, 2020, as shown in Illustration 4–6. Do not prepare a government-wide statement of activities because other governmental funds would affect that statement.
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