a
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.
a
Explanation of Solution
- 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
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
b
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
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.
c
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
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
d
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
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.
e
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 |
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Chapter 17 Solutions
ADVANCED FINANCIAL ACCOUNTING-ACCESS
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