Chapter 11, Problem 42P

To determine

Prepare the entries first for fund financial statements and then for government-wide financial statements.

Explanation of Solution

The entries in the fund financial statements are as follows:

Date	Account Title and Explanation	Post ref.	Debit ($)	Credit ($)
a.	General Fund
	Estimated Revenue Control		834,000
	Appropriations control			540,000
	Estimated Other Financing Uses-Operating transfers			242,000
	Budgetary balance			52,000
	(being budget recorded along with spending)
b.	Capital project Fund
	Encumbrance Control		8,000,000
	Fund Balance-Reserved for encumbrances			8,000,000
c.	Capital project Fund
	Cash		8,000,000
	Other Financing sources control			8,000,000
d.	Capital project Fund
	Fund Balance-Reserved for Encumbrances		8,000,000
	Encumbrances Control			8,000,000
	Expenditures Control		8,000,000
	Contracts Payable			8,000,000
	Contracts Payable		8,000,000
	Cash			8,000,000
e.	General Fund
	Other Financing sources control		1,000,000
	Cash			1,000,000
	Debt Service Fund
	Cash		1,000,000
	Other Financing Resources			1,000,000
f.	Debt Service Fund
	Expenditures Control-Bonds		900,000
	Expenditures Control-Interest		100,000
	Cash			1,000,000
g.	General Fund
	Property Tax receivable		800,000
	Revenues-Property Tax			768,000
	Uncollectable Tax			32,000
h.	Special Revenue fund
	Cash		120,000
	Revenue Control			120,000
i.	Permanent Fund
	Investments		300,000
	Contribution revenue			300,000

Table: (1)

The entries in the government-wide financial statements are as follows:

Date	Account Title and Explanation	Post ref.	Debit ($)	Credit ($)
a.	Budgets are not reported in the government-wide financial statements
b.	Commitments are not recorded in the government-wide Financial Statements
c.	Cash		8,000,000
	bonds payable			8,000,000
d.	Buildings		8,000,000
	Cash			8,000,000
e.	Intra-entity activity transfers are not recorded in government-wide financial statements
f.	Bonds payable		900,000
	Interest expense		100,000
	Cash			1,000,000
g.	Property Tax receivable		800,000
	Revenues-Property Tax			768,000
	Uncollectable Tax			32,000
h.	Cash		120,000
	Revenue-Reserved for Highway Maintenance			120,000
i.	Investments		300,000
	Revenues-Donations			300,000

Table: (2)