Question: During 2012 the City of Greenfield engaged in the following

During 2012, the City of Greenfield engaged in the following financial activities:
1. The City Council approved the budget for the general operating fund. The budget shows estimated revenues of $1,900,000 and appropriations for expenditures of $1,850,000.
2. Property tax assessments for 2012 were compiled and statements mailed to property owners. Assessments total $955,000. Past collection experience indicates that approximately 5% of assessed property taxes are delinquent or uncollectible during the year of billing.
3. A low bid of $15,000 was accepted for a new vehicle for the fire chief. A purchase order was issued providing for additional costs for painting and ancillary equipment (negotiated after the bid) prior to delivery. The estimate of additional costs is $1,400.
4. Additional purchase orders placed during the year amount to $140,000.
5. City employees are issued paychecks for the month of April. The total payroll amounts to $90,000.
6. The City received a statement from the State Treasurer that the City’s portion of the state sales tax for the first half-year is $375,000.
7. Vouchers for expenditures totaling $135,000 are approved for payment. Encumbrances against these vouchers were recorded at a total of $137,000.
8. The vehicle for the fire chief was delivered and accepted. The invoice in the amount of $16,200 was approved for payment.
9. Property tax collections for the month of June amounted to $450,000.
10. The City Treasurer issued checks in payment of the vouchers totaling $135,000 and for the invoice for the fire chief’s vehicle.
11. A purchase order previously issued for an electric typewriter (estimated price $650) was canceled when the vendor indicated a three-month delay in delivery.

Prepare journal entries to record and account for the foregoing transactions.

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  • CreatedMarch 16, 2015
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