Jefferson Countys General Fund began the year 2020 with the following account balances: During 2020, Jefferson experienced
Question:
Jefferson County’s General Fund began the year 2020 with the following account balances:
During 2020, Jefferson experienced the following transactions:
1. The budget was passed by the County Commission, providing estimated revenues of $286,000 and appropriations of $233,000 and estimated other financing uses of $40,000.
2. Encumbrances totaling $4,800 outstanding at December 31, 2019, were re-established.
3. The Deferred Inflows—Property Taxes at December 31, 2019, is recognized as revenue in the current period.
4. Property taxes in the amount of $288,000 were levied by the County. It is estimated 0.5 percent (1/2 of 1 percent) will be uncollectible.
5. Property tax collections totaled $263,400. Accounts totaling $1,850 were written off as uncollectible.
6. Encumbrances were issued for supplies in the amount of $37,100.
7. Supplies in the amount of $40,500 were received. Jefferson County records supplies as an asset when acquired. The related encumbrances for these items totaled $41,000 and included the $4,800 encumbered last year. The County paid $38,100 on accounts payable during the year.
8. The County contracted to have alarm systems (capital assets) installed in the administration building at a cost of $42,900. The systems were installed and the amount was paid.
9. Paid wages totaling $135,900, including the amount payable at the end of 2019. (These were for general government operations.)
10. Paid other general government operating items of $7,600.
11. The General Fund transferred $39,800 to the debt service fund in anticipation of bond interest and principal payments. Additional Information
12. Wages earned but unpaid at the end of the year amounted to $890.
13. Supplies of $350 were on hand at the end of the year. (Supplies are used for general government operations.)
14. A review of property taxes receivable indicates that $23,000 of the outstanding balances would likely be collected more than 60 days after year-end and should be deferred.
Required:
Use the Excel template provided on the textbook website to complete the following requirements. A separate tab is provided in Excel for the following
items:
a. Prepare journal entries to record the information described in items 1 to 14. Classify expenditures in the General Fund as either General Government or Capital Outlay. Make entries directly to these and the individual revenue accounts; do not use subsidiary ledgers.
b. Post these entries to T-accounts.
c. Prepare closing journal entries; post to the T-account provided. Classify fund balances assuming there are no restricted or committed net resources and the only assigned net resources are the outstanding encumbrances.
d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund for the year ending 2020. Use Excel formulas to calculate the cells shaded in blue.
e. Prepare a Balance Sheet for the General Fund as of December 31, 2020.
Journal Entries| Jefferson County | |||
| General Fund Journal Entries | |||
| December 31, 2020 | |||
| Item # | Account Title | Debits | Credits |
| ALLOWANCE FOR | |||||||||||||||
| CASH | TAXES RECEIVABLE | UNCOLLECTIBLE TAXES | SUPPLIES | ||||||||||||
| bb | 146,348 | bb | 32,220 | 1,900 | bb | bb | 1,660 | ||||||||
| 32,220 | 1,900 | 1,660 | |||||||||||||
| 146,348 | |||||||||||||||
| DEFERRED INFLOWS - | |||||||||||||||
| ACCOUNTS PAYABLE | PROPERTY TAXES | WAGES PAYABLE | FUND BALANCE | ||||||||||||
| - | bb | 21,000 | bb | 570 | bb | 156,758 | bb | ||||||||
| - | 21,000 | 570 | 156,758 | ||||||||||||
| GENERAL GOVERNMENT | CAPITAL | OTHER FINANCING USES | |||||||||||||
| EXPENDITURES | EXPENDITURES | PROPERTY TAX REVENUE | TRANSFERS OUT | ||||||||||||
Expert Answer:
Journal Entries General Fund Journal Entries December 31 2020 Item Account Title Debits Credits 1 Es... View the full answer
