Question

(a) Prepare general ledger and subsidiary ledger entries to record the following transactions of the City of Ann Arbor, Michigan, Community Television Network Special Revenue Fund for the year ended June 30, 20X3.
(b) Reconcile the general ledger and the subsidiary ledgers at year end.
(c) Close the accounts.
1. The Ann Arbor City Council adopted the following budget on the modified accrual basis for the Community Television Network Special Revenue Fund:
Estimated Revenues:  
Licenses, permits, & registrations . . . . . . . . . . . . . . . . . . $1,270,080
Charges for services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,375
  1,313,455
Appropriations:  
Personnel services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519,339
Payroll fringes/insurance . . . . . . . . . . . . . . . . . . . . . . . . . . 175,364
Other services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,541
Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Other charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,547
Capital outlay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252,664
  1,321,455
Excess (Deficiency) of Estimated
Revenues over Appropriations . . . . . . . . . . . . . . . . . . ($ 8,000)
2. The city collected cash for the network as follows:
Licenses, permits, & registrations . . . . . . . . . . . . . . . . . $1,388,335
Charges for services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,603
Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
  $1,416,938
3. City Council revised the Community Television Network Special Revenue Fund appropriations for “Personnel services” and “Payroll fringes/insurance” upward by $40,000 and $15,000, respectively, as a result of hiring an additional employee and minor modifications to the employees’ insurance benefits. Appropriations for “Materials and supplies” and “Capital outlay” were reduced by $3,000 and $60,000, respectively.
4. The payroll was approved and paid, $559,339.
5. Payroll fringe benefit and insurance costs of $190,000 were incurred during the year; $10,000 was not paid by year end.
6. The network ordered materials and supplies with an estimated cost of $17,000 and equipment expected to cost $192,664.
7. “Other services” of $194,000 and “Other charges” of $159,547 were incurred and paid.
8. The network received the materials and supplies ordered. The actual cost was $16,980. The network also received most of the equipment ordered, but orders for $50,000 of transmission equipment had not been received by year end. The actual cost of the equipment received was equal to the expected costs.



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  • CreatedOctober 25, 2014
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