ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Question
Chapter 17, Problem 17.14P
To determine
Concept introduction:
General fund: It accounts for all financial resources except for those accounted for in another fund. It includes transactions for general governmental services provided by the entity’s executive, legislative, and judicial operations. The accounting for the general fund includes accounting for the inter fund activities on the general fund’s operating statement, the statement of revenues, expenditures, and changes in fund balance.
The entries to record budgeted and actual transactions for year ended June 30, 20X2.
Expert Solution & Answer
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Explanation of Solution
Particulars | Debit $ | Credit $ |
Estimated revenues control | 3,000,000 | |
Appropriations control | 2,980,000 | |
Budgetary fund balance − unreserved | 20,000 | |
(Budgetary estimates recorded) | ||
Taxes receivable | 2,870,000 | |
Allowance for uncollectible taxes | 70,000 | |
Property tax revenue | 2,800,000 | |
(Property tax levy recorded in tax | ||
Cash | 2,810,000 | |
Taxes receivable | 2,810,000 | |
(Received cash on account of property tax collections) | ||
Allowance for Uncollectible taxes | 40,000 | |
Tax receivable | 40,000 | |
(Allowance for uncollectible created for doubtful tax receivable) | ||
Cash | 130,000 | |
Miscellaneous receivables | 130,000 | |
(Cash received on account of Miscellaneous revenue) | ||
Fund Balance − Reserved for encumbrances | 60,000 | |
Fund balance − unreserved) | 60,000 | |
(Reversal of prior reserves which has been renewed) | ||
Encumbrances | 60,000 | |
Budgetary fund balance − reserved for encumbrances | 60,000 | |
(Record renewal of purchase commitments from prior year) | ||
Expenditures | 142,000 | |
Due to other funds | 142,000 | |
((record liability to other funds for service received) | ||
Budgetary fund balance − reserved for encumbrances | 2,700,000 | |
Encumbrances | 2,700,000 | |
(Reverse for purchase order received) | ||
Expenditures | 2,700,000 | |
Vouchers payable | 2,700,000 | |
(Recording of expenditures) | ||
Budgetary fund balance − reserved for encumbrances | 60,000 | |
Encumbrances | 60,000 | |
(Reverse for purchase order received) | ||
Expenditures prior period | 58,000 | |
Vouchers payable | 58,000 | |
(Recording of actual expenditures for goods received) | ||
Due to other funds | 210,000 | |
Vouchers payable | 210,000 | |
(Record approval for payment to other funds) | ||
Vouchers payable | 2,640,000 | |
Cash | 2,640,000 | |
(Payments of vouchers during the period) | ||
Encumbrances | 91,000 | |
Budgetary fund balance − reserved for encumbrances | 91,000 | |
(Recording of encumbrances on May 10) | ||
(Closure of budgetary account) |
- The budget for the year is estimated to be $3,000,000 and appropriations were made for $2,980,000 and the balance amount is unreserved.
- Taxes receivable is estimated to be $2,870,000 debited to receivable account and allowance for uncollectible is created remaining balance is credited to property tax revenue.
- Property tax collections received debited to the cash account and credited to the tax receivable account.
- Tax receivable worth $40,000 is expected to be uncollectible and written off from allowance for uncollectible.
- Cash received on account of miscellaneous revenue and debited to cash account.
- Encumbrances of prior year renewed in the current year.
- Renewal of encumbrances of the prior year.
- Encumbrances for purchase commitment recorded.
- Liability on service received from other funds recognized in expenditures.
- Encumbrances of $2,700,000 reversed for purchase order received.
- Expenditure for the year recognized by crediting to vouchers payable account.
- Reversal of reserved encumbrances $60,000 on receipt of goods.
- Actual expenditure of $58,000 on goods received recognized.
- Amount due to other funds recognized and credited to vouchers payable.
- Vouchers worth $2,640,000 payable during the year paid and credited to the cash account.
- Encumbrances made on May 10 recorded.
July 1, 20X1 taxes receivable balance | $150,000 |
20X2 tax levy | 2,870,000 |
Less: Tax collected | (2,810,000) |
Tax receivable final balance | (170,000) |
Taxes written off as uncollectible | $40,000 |
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Chapter 17 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 17 - Prob. 17.1QCh. 17 - What are the nine funds that local and state...Ch. 17 - Compare the modified accrual basis with the...Ch. 17 - Prob. 17.4QCh. 17 - When are property taxes recognized as revenue in...Ch. 17 - Prob. 17.6QCh. 17 - Prob. 17.7QCh. 17 - Are all expenditures encumbered?Ch. 17 - Prob. 17.9QCh. 17 - Prob. 17.10Q
Ch. 17 - When is the expenditure for inventories recognized...Ch. 17 - Prob. 17.12QCh. 17 - Prob. 17.13QCh. 17 - Prob. 17.14QCh. 17 - Prob. 17.15QCh. 17 - Prob. 17.1CCh. 17 - Prob. 17.2CCh. 17 - Prob. 17.3CCh. 17 - Prob. 17.1.1ECh. 17 - Prob. 17.1.2ECh. 17 - Prob. 17.1.3ECh. 17 - Prob. 17.1.4ECh. 17 - Prob. 17.1.5ECh. 17 - Prob. 17.2ECh. 17 - Prob. 17.3.1ECh. 17 - Prob. 17.3.2ECh. 17 - Prob. 17.3.3ECh. 17 - Prob. 17.3.4ECh. 17 - Prob. 17.3.5ECh. 17 - Prob. 17.3.6ECh. 17 - Prob. 17.3.7ECh. 17 - Prob. 17.3.8ECh. 17 - Prob. 17.3.9ECh. 17 - Prob. 17.3.10ECh. 17 - Prob. 17.4.1ECh. 17 - Prob. 17.4.2ECh. 17 - Prob. 17.4.3ECh. 17 - Prob. 17.4.4ECh. 17 - Prob. 17.4.5ECh. 17 - Prob. 17.4.6ECh. 17 - Prob. 17.4.7ECh. 17 - Prob. 17.4.8ECh. 17 - Prob. 17.4.9ECh. 17 - Prob. 17.4.10ECh. 17 - Prob. 17.5ECh. 17 - Prob. 17.6ECh. 17 - Prob. 17.7ECh. 17 - Computation of Revenues Reported on the Statement...Ch. 17 - Prob. 17.9ECh. 17 - Prob. 17.10ECh. 17 - Prob. 17.11ECh. 17 - Prob. 17.12ECh. 17 - General Fund Entries [AICPA Adapted] The following...Ch. 17 - Prob. 17.14PCh. 17 - Prob. 17.15PCh. 17 - Prob. 17.16PCh. 17 - Prob. 17.17PCh. 17 - Prob. 17.18.1PCh. 17 - Prob. 17.18.2PCh. 17 - Prob. 17.18.3PCh. 17 - Prob. 17.18.4PCh. 17 - Prob. 17.18.5PCh. 17 - Prob. 17.18.6PCh. 17 - Prob. 17.18.7PCh. 17 - Prob. 17.18.8PCh. 17 - Prob. 17.18.9PCh. 17 - Prob. 17.18.10PCh. 17 - Prob. 17.18.11PCh. 17 - Prob. 17.18.12PCh. 17 - Prob. 17.18.13PCh. 17 - Prob. 17.18.14PCh. 17 - Prob. 17.18.15PCh. 17 - Prob. 17.18.16PCh. 17 - Prob. 17.18.17PCh. 17 - Prob. 17.18.18PCh. 17 - Prob. 17.18.19PCh. 17 - Prob. 17.18.20PCh. 17 - Prob. 17.18.21PCh. 17 - Prob. 17.18.22PCh. 17 - Prob. 17.18.23PCh. 17 - Prob. 17.18.24PCh. 17 - Prob. 17.18.25PCh. 17 - Prob. 17.18.26PCh. 17 - Prob. 17.18.27PCh. 17 - General Fund Entries [AICPA Adapted] DeKalb City...Ch. 17 - Prob. 17.18.29PCh. 17 - Prob. 17.18.30PCh. 17 - Prob. 17.18.31PCh. 17 - General Fund Entries [AICPA Adapted] DeKalb City...Ch. 17 - Prob. 17.18.33PCh. 17 - Prob. 17.18.34PCh. 17 - Prob. 17.18.35PCh. 17 - General Fund Entries [AICPA Adapted] DeKalb City...Ch. 17 - Prob. 17.18.37PCh. 17 - Prob. 17.18.38PCh. 17 - Prob. 17.18.39PCh. 17 - Prob. 17.19PCh. 17 - Prob. 17.20P
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