Chapter 17, Problem 17.15P

a

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 summarize the general fund budget and transactions for 20X2.

Explanation of Solution

1. Entries for 20X2 budget and transactions

Particulars	Debit $	Credit $
1. Estimated revenue control	1,877,000
Appropriations control		1,840,000
Estimated other financial uses − transfer out		37,000
(Budgetary estimates recorded)
Encumbrances	21,000
Budgetary fund balance − reserved for encumbrances		21,000
(Prior period encumbrances renewed)
Fund balance − reserved for encumbrances	21,000
Fund balance − unreserved		21,000
(Reverse reserve for renewed encumbrances)
Property tax receivable − Current	1,600,000
Allowance for uncollectible − Current		16,000
Property tax revenue		1,584,000
(Property tax levy recorded)
2. Cash	1,590,000
Property taxes receivable − Current		1,507,000
Property taxes receivable − Delinquent		83,000
(Received cash from property tax collection)
Allowances for uncollectible − Delinquent	9,000
Property taxes receivable − Delinquent		7,000
Property tax revenue		2,000
(Delinquent property taxes written off)
Property taxes receivable − Delinquent	93,000
Allowance for uncollectible − Current	16,000
Property taxes receivable − Current		93,000
Allowance for uncollectible − Delinquent		16,000
(Reclassification of remaining uncollected 20X2 property tax)
Cash	333,000
Sales tax revenue		284,000
Miscellaneous revenue		39,000
Due to motor pool fund		10,000
(Other cash receipts)
3. Encumbrances	1,800,000
Budgetary fund balance − reserved for encumbrances		1,800,000
(Purchase order recorded)
Budgetary fund balance − reserved for encumbrances	1,773,000
Encumbrances		1,773,000
(Reversal of reserve for items received)
Expenditures	1,788,000
Vouchers payable		1,788,000
(Actual expenditures for items received)
Vouchers payable	1,793,000
Cash		1,793,000
(Vouchers paid)
4. Due from central stores fund	13,000
Other financing uses − transfer out	37,000
Cash		50,000
(Other cash payments and transfer)

b

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 pre closing trial balance.

Answer to Problem 17.15P

Trial balance total $4,047,000

Explanation of Solution

PR

General Fund

Pre closing Trial Balance

December 31, 20X2

Items	Debit $	Credit $
Cash	191,000
Property tax receivable − Delinquent	93,000
Allowance for Uncollectible − Delinquent		16,000
Due from central stores fund	13,000
Vouchers payable		26,000
Due to Motor pool fund		10,000
Fund balance − Unreserved		161,000
Property tax revenue		1,586,000
Sales tax revenue		284,000
Miscellaneous revenue		39,000
Expenditures	1,788,000
Other financing uses − Transfer out	37,000
Estimated revenues control	1,877,000
Appropriations control		1,840,000
Estimated other financing uses − Transfer out		37,000
Encumbrances	48,000
Budgetary fund balance − Reserved for encumbrances		48,000
Total	4,047,000	4,047,000

c

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 closing entries for the general fund.

Explanation of Solution

Particulars	Debit $	Credit $
Appropriations control	1,840,000
Estimated other financing uses − transfer out	37,000
Estimated revenue control		1,877,000
(Budgetary accounts closed)
Budgetary fund balance − reserved for encumbrances	48,000
Encumbrances		48,000
(Remaining encumbrances closed)
Fund balance − unreserved	48,000
Fund balance − reserved for encumbrances		48,000
(Reserved fund balance for outstanding orders)
Property tax revenue	1,586,000
Sales tax revenue	284,000
Miscellaneous revenue	39,000
Expenditures		1,788,000
Other financing uses − transfer out		37,000
Fund balance − unreserved		84,000
(Closing of operating statement accounts)

d

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 balance sheet for general fund for 20X2.

Answer to Problem 17.15P

Balance sheet total $281,000

Explanation of Solution

PR

General Fund Balance Sheet

For December 31, 20X2

	$	$
Assets:
Cash		191,000
Property tax receivables − Delinquent	93,000
Less: Allowance for uncollectible − Delinquent	(16,000)	77,000
Due from central stores fund		13,000
Total Assets		281,000
Liabilities and fund balance:
Vouchers payable		26,000
Due to motor pool fund		10,000
Fund balance:
Reserve for encumbrances	48,000
Unreserved	197,000	245,000
Total Liabilities and Fund Balance		281,000

e

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 summarize the general fund budget and transactions for 20X2.

Answer to Problem 17.15P

Excess of revenue over expenditures $121,000 and Fund balance at December 31, 20X2 $245,000

Explanation of Solution

PR

General Fund

Statement of Revenue, Expenditure and

Changes in Fund Balance

For the year December 31, 20X2

	$	$
Revenue:
Property taxes		1586,000
Sales taxes		284,000
Miscellaneous		39,000
Total revenue		1,909,000
Expenditures:
Current	1,746,000
Capital outlay − Furniture	42,000
Total expenditures		1,788,000
Excess of revenue over expenditures		121,000
Other financing sources (uses) transfer out		(37,000)
Change in fund balance		84,000
Fund balance, January 1, 20X2		161,000
Fund balance, December 31, 20X2		245,000