The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019,...
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The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources- Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned Debits $ 476,000 601,000 28,080 17,900 $1,122,980 Credits $ 189,120 12,960 166,500 77,490 427,000 17,900 232,010 $1,122,980 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. Transaction Fund / Governmental Activties General Journal 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,500,000 and appropriations totaling $3,442,000. 1 General Fund Estimated Revenues Appropriations Budgetary Fund Balance Governmental Activities No Journal Entry Required Cash Expenditures Tax Anticipation Notes Payable Governmental Activities Cash Expenses Tax Anticipation Notes Payable 2. The city council authorized temporary borrowing of $680,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). 2 General Fund Allowance for Uncollectible Current Taxes Revenues Debit Governmental Activities Taxes Receivable-Current 3,500,000 Allowance for Uncollectible Current Taxes General Revenues 666,400 13,600 666,400 13,600 Credit 3,442,000 58,000 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $50,200,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 3 General Fund Taxes Receivable-Current 2,510,000 2,510,000 680,000 680,000 75,300 2,434,700 75,300 2,434,700 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,240,000. 4 General Fund Encumbrances Encumbrances Outstanding 5a 5b 5. $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 5c Governmental Activities No Journal Entry Required 5d General Fund Governmental Activities 2,240,000 Cash Taxes Receivable-Current Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Taxes Receivable-Delinquent Interest and Penalties Receivable 2,683,640 2,240,000 423,640 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Deferred Inflows of Resources-Unavailable Revenues Revenues 2,260,000 401,270 22,370 2,683,640 423,640 Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Cash Taxes Receivable-Current Taxes Receivable-Delinquent Interest and Penalties Receivable 2,260,000 401,270 22,370 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. No Journal Entry Required 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $40,230, of which 30 percent was estimated to be uncollectible. 6 General Fund Interest and Penalties Receivable 40,230 Allowance for Uncollectible Interest and Penalties Revenues Governmental Activities Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties General Revenues 7. Because of a change in state law, the city was notified that it will receive $116,000 less in intergovernmental revenues than was budgeted. General Fund 7 116,000 Budgetary Fund Balance Estimated Revenues Governmental Activities No Journal Entry Required 8. Delinquent taxes of $13,508 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. 8 General Fund Allowance for Uncollectible Delinquent Taxes 13,508 Allowance for Uncollectible Interest and Penalties 1,005 Taxes Receivable-Delinquent Interest and Penalties Receivable 40,230 Governmental Activities Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 13,508 1,005 12,069 28,161 12,069 28,161 116,000 13,508 1,005 13,508 1,005 9. Total payroll during the year was $999,490. Of that amount, $80,690 was withheld for employees' FICA tax liability, $121,710 for employees' federal income tax liability, and $36,200 for state taxes; the balance was paid to employees in cash. 9 General Fund Expenditures Due to Federal Government Due to State Government Cash Governmental Activities Expenses Due to Federal Government Due to State Government Cash 10. The employer's FICA tax liability was recorded for $80,690. 10 General Fund Expenditures Due to Federal Government Governmental Activities Expenses Due to Federal Government 11. Revenues from sources other than taxes were collected in the amount of $965,000. General Fund 11 Cash Revenues Governmental Activities Cash General Revenues 999,490 999,490 80,690 80,690 965,000 965,000 202,400 36,200 760,890 202,400 36,200 760,890 80,690 80,690 965,000 965,000 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund 13b Due to Federal Government Due to State Government Vouchers Payable 13c Governmental Activities Due to Federal Government Due to State Government Vouchers Payable 13. Purchase orders and contracts encumbered in the amount of $2,168,040 were filled at a net cost of $2,167,570, which was vouchered. General Fund 13a Record the encumbrances outstanding for 2020. Encumbrances Outstanding Encumbrances Record the total expenditures against vouchers payable for 2020. Expenditures Vouchers Payable Governmental Activities Record the total expenses against vouchers payable for 2020. Expenses Vouchers Payable 360,580 36,200 Governmental Activities Vouchers Payable Cash Expenses 360,580 36,200 2,168,040 14. Vouchers payable totaling $2,481,660 were paid after deducting a credit for purchases discount of $9,830 (credit Expenditures). General Fund 14 Vouchers Payable Cash Expenditures 2,167,570 2,167,570 2,481,660 2,481,660 396,780 396,780 2,168,040 2,167,570 2,167,570 2,471,830 9,830 2,471,830 9,830 15. The tax anticipation note of $680,000 was repaid. 15 General Fund Tax Anticipation Notes Payable Cash Governmental Activities Tax Anticipation Notes Payable Cash 680,000 680,000 680,000 680,000 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund 16b 16c 16d 16e 16f Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource Revenues Deferred Inflows of Resources-Unavailable Revenues Governmental Activities Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource No Journal Entry Required 250,000 75,300 250,000 75,300 250,000 75,300 250,000 75,300 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $22,700. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal. Recorded entry to reclassify the fund balance.) 17 General Fund Inventory of Supplies Fund Balance-Nonspendable-Inventory of Supplies Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transactions Fund 1. Record the closure of budgetary statements account. 1 General Fund Appropriations 2. Record the closure of operating 2 General Fund Estimated Revenues Budgetary Fund Balance General Journal statements account. Revenues Expenditures Fund Balance-Unassigned Debit 3,442,000 Credit 3,384,000 58,000 Prepare a General Fund balance sheet as of June 30, 2020. CITY OF CASTLETON General Fund Balance Sheet As of June 30, 2020 Assets Cash Taxes Receivable-Delinquent Less: Allowance for Uncollectible Taxes-Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities: Liabilities and Fund Balances Vouchers Payable Deferred Inflows of Resources-Unavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances: Nonspendable Inventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances < Required B $ $ Required D 0 0 0 0 0 Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. CITY OF CASTLETON General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2020 Revenues Taxes Interest and Penalties on Taxes Other Sources Total Revenues Expenditures Salaries and Wages Interest on Note Payable Other Total Expenditures Excess of Revenues over Expenditures Increase in Inventory of Supplies Fund Balances, July 1, 2019 Fund Balances, June 30, 2020 $ 0 0 0 The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources- Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned Debits $ 476,000 601,000 28,080 17,900 $1,122,980 Credits $ 189,120 12,960 166,500 77,490 427,000 17,900 232,010 $1,122,980 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. Transaction Fund / Governmental Activties General Journal 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,500,000 and appropriations totaling $3,442,000. 1 General Fund Estimated Revenues Appropriations Budgetary Fund Balance Governmental Activities No Journal Entry Required Cash Expenditures Tax Anticipation Notes Payable Governmental Activities Cash Expenses Tax Anticipation Notes Payable 2. The city council authorized temporary borrowing of $680,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). 2 General Fund Allowance for Uncollectible Current Taxes Revenues Debit Governmental Activities Taxes Receivable-Current 3,500,000 Allowance for Uncollectible Current Taxes General Revenues 666,400 13,600 666,400 13,600 Credit 3,442,000 58,000 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $50,200,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 3 General Fund Taxes Receivable-Current 2,510,000 2,510,000 680,000 680,000 75,300 2,434,700 75,300 2,434,700 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,240,000. 4 General Fund Encumbrances Encumbrances Outstanding 5a 5b 5. $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 5c Governmental Activities No Journal Entry Required 5d General Fund Governmental Activities 2,240,000 Cash Taxes Receivable-Current Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Taxes Receivable-Delinquent Interest and Penalties Receivable 2,683,640 2,240,000 423,640 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Deferred Inflows of Resources-Unavailable Revenues Revenues 2,260,000 401,270 22,370 2,683,640 423,640 Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Cash Taxes Receivable-Current Taxes Receivable-Delinquent Interest and Penalties Receivable 2,260,000 401,270 22,370 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. No Journal Entry Required 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $40,230, of which 30 percent was estimated to be uncollectible. 6 General Fund Interest and Penalties Receivable 40,230 Allowance for Uncollectible Interest and Penalties Revenues Governmental Activities Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties General Revenues 7. Because of a change in state law, the city was notified that it will receive $116,000 less in intergovernmental revenues than was budgeted. General Fund 7 116,000 Budgetary Fund Balance Estimated Revenues Governmental Activities No Journal Entry Required 8. Delinquent taxes of $13,508 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. 8 General Fund Allowance for Uncollectible Delinquent Taxes 13,508 Allowance for Uncollectible Interest and Penalties 1,005 Taxes Receivable-Delinquent Interest and Penalties Receivable 40,230 Governmental Activities Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 13,508 1,005 12,069 28,161 12,069 28,161 116,000 13,508 1,005 13,508 1,005 9. Total payroll during the year was $999,490. Of that amount, $80,690 was withheld for employees' FICA tax liability, $121,710 for employees' federal income tax liability, and $36,200 for state taxes; the balance was paid to employees in cash. 9 General Fund Expenditures Due to Federal Government Due to State Government Cash Governmental Activities Expenses Due to Federal Government Due to State Government Cash 10. The employer's FICA tax liability was recorded for $80,690. 10 General Fund Expenditures Due to Federal Government Governmental Activities Expenses Due to Federal Government 11. Revenues from sources other than taxes were collected in the amount of $965,000. General Fund 11 Cash Revenues Governmental Activities Cash General Revenues 999,490 999,490 80,690 80,690 965,000 965,000 202,400 36,200 760,890 202,400 36,200 760,890 80,690 80,690 965,000 965,000 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund 13b Due to Federal Government Due to State Government Vouchers Payable 13c Governmental Activities Due to Federal Government Due to State Government Vouchers Payable 13. Purchase orders and contracts encumbered in the amount of $2,168,040 were filled at a net cost of $2,167,570, which was vouchered. General Fund 13a Record the encumbrances outstanding for 2020. Encumbrances Outstanding Encumbrances Record the total expenditures against vouchers payable for 2020. Expenditures Vouchers Payable Governmental Activities Record the total expenses against vouchers payable for 2020. Expenses Vouchers Payable 360,580 36,200 Governmental Activities Vouchers Payable Cash Expenses 360,580 36,200 2,168,040 14. Vouchers payable totaling $2,481,660 were paid after deducting a credit for purchases discount of $9,830 (credit Expenditures). General Fund 14 Vouchers Payable Cash Expenditures 2,167,570 2,167,570 2,481,660 2,481,660 396,780 396,780 2,168,040 2,167,570 2,167,570 2,471,830 9,830 2,471,830 9,830 15. The tax anticipation note of $680,000 was repaid. 15 General Fund Tax Anticipation Notes Payable Cash Governmental Activities Tax Anticipation Notes Payable Cash 680,000 680,000 680,000 680,000 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund 16b 16c 16d 16e 16f Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource Revenues Deferred Inflows of Resources-Unavailable Revenues Governmental Activities Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource No Journal Entry Required 250,000 75,300 250,000 75,300 250,000 75,300 250,000 75,300 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $22,700. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal. Recorded entry to reclassify the fund balance.) 17 General Fund Inventory of Supplies Fund Balance-Nonspendable-Inventory of Supplies Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transactions Fund 1. Record the closure of budgetary statements account. 1 General Fund Appropriations 2. Record the closure of operating 2 General Fund Estimated Revenues Budgetary Fund Balance General Journal statements account. Revenues Expenditures Fund Balance-Unassigned Debit 3,442,000 Credit 3,384,000 58,000 Prepare a General Fund balance sheet as of June 30, 2020. CITY OF CASTLETON General Fund Balance Sheet As of June 30, 2020 Assets Cash Taxes Receivable-Delinquent Less: Allowance for Uncollectible Taxes-Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities: Liabilities and Fund Balances Vouchers Payable Deferred Inflows of Resources-Unavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances: Nonspendable Inventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances < Required B $ $ Required D 0 0 0 0 0 Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. CITY OF CASTLETON General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2020 Revenues Taxes Interest and Penalties on Taxes Other Sources Total Revenues Expenditures Salaries and Wages Interest on Note Payable Other Total Expenditures Excess of Revenues over Expenditures Increase in Inventory of Supplies Fund Balances, July 1, 2019 Fund Balances, June 30, 2020 $ 0 0 0 The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources- Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned Debits $ 476,000 601,000 28,080 17,900 $1,122,980 Credits $ 189,120 12,960 166,500 77,490 427,000 17,900 232,010 $1,122,980 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. Transaction Fund / Governmental Activties General Journal 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,500,000 and appropriations totaling $3,442,000. 1 General Fund Estimated Revenues Appropriations Budgetary Fund Balance Governmental Activities No Journal Entry Required Cash Expenditures Tax Anticipation Notes Payable Governmental Activities Cash Expenses Tax Anticipation Notes Payable 2. The city council authorized temporary borrowing of $680,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). 2 General Fund Allowance for Uncollectible Current Taxes Revenues Debit Governmental Activities Taxes Receivable-Current 3,500,000 Allowance for Uncollectible Current Taxes General Revenues 666,400 13,600 666,400 13,600 Credit 3,442,000 58,000 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $50,200,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 3 General Fund Taxes Receivable-Current 2,510,000 2,510,000 680,000 680,000 75,300 2,434,700 75,300 2,434,700 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,240,000. 4 General Fund Encumbrances Encumbrances Outstanding 5a 5b 5. $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 5c Governmental Activities No Journal Entry Required 5d General Fund Governmental Activities 2,240,000 Cash Taxes Receivable-Current Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Taxes Receivable-Delinquent Interest and Penalties Receivable 2,683,640 2,240,000 423,640 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Deferred Inflows of Resources-Unavailable Revenues Revenues 2,260,000 401,270 22,370 2,683,640 423,640 Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Cash Taxes Receivable-Current Taxes Receivable-Delinquent Interest and Penalties Receivable 2,260,000 401,270 22,370 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. No Journal Entry Required 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $40,230, of which 30 percent was estimated to be uncollectible. 6 General Fund Interest and Penalties Receivable 40,230 Allowance for Uncollectible Interest and Penalties Revenues Governmental Activities Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties General Revenues 7. Because of a change in state law, the city was notified that it will receive $116,000 less in intergovernmental revenues than was budgeted. General Fund 7 116,000 Budgetary Fund Balance Estimated Revenues Governmental Activities No Journal Entry Required 8. Delinquent taxes of $13,508 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. 8 General Fund Allowance for Uncollectible Delinquent Taxes 13,508 Allowance for Uncollectible Interest and Penalties 1,005 Taxes Receivable-Delinquent Interest and Penalties Receivable 40,230 Governmental Activities Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 13,508 1,005 12,069 28,161 12,069 28,161 116,000 13,508 1,005 13,508 1,005 9. Total payroll during the year was $999,490. Of that amount, $80,690 was withheld for employees' FICA tax liability, $121,710 for employees' federal income tax liability, and $36,200 for state taxes; the balance was paid to employees in cash. 9 General Fund Expenditures Due to Federal Government Due to State Government Cash Governmental Activities Expenses Due to Federal Government Due to State Government Cash 10. The employer's FICA tax liability was recorded for $80,690. 10 General Fund Expenditures Due to Federal Government Governmental Activities Expenses Due to Federal Government 11. Revenues from sources other than taxes were collected in the amount of $965,000. General Fund 11 Cash Revenues Governmental Activities Cash General Revenues 999,490 999,490 80,690 80,690 965,000 965,000 202,400 36,200 760,890 202,400 36,200 760,890 80,690 80,690 965,000 965,000 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund 13b Due to Federal Government Due to State Government Vouchers Payable 13c Governmental Activities Due to Federal Government Due to State Government Vouchers Payable 13. Purchase orders and contracts encumbered in the amount of $2,168,040 were filled at a net cost of $2,167,570, which was vouchered. General Fund 13a Record the encumbrances outstanding for 2020. Encumbrances Outstanding Encumbrances Record the total expenditures against vouchers payable for 2020. Expenditures Vouchers Payable Governmental Activities Record the total expenses against vouchers payable for 2020. Expenses Vouchers Payable 360,580 36,200 Governmental Activities Vouchers Payable Cash Expenses 360,580 36,200 2,168,040 14. Vouchers payable totaling $2,481,660 were paid after deducting a credit for purchases discount of $9,830 (credit Expenditures). General Fund 14 Vouchers Payable Cash Expenditures 2,167,570 2,167,570 2,481,660 2,481,660 396,780 396,780 2,168,040 2,167,570 2,167,570 2,471,830 9,830 2,471,830 9,830 15. The tax anticipation note of $680,000 was repaid. 15 General Fund Tax Anticipation Notes Payable Cash Governmental Activities Tax Anticipation Notes Payable Cash 680,000 680,000 680,000 680,000 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund 16b 16c 16d 16e 16f Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource Revenues Deferred Inflows of Resources-Unavailable Revenues Governmental Activities Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource No Journal Entry Required 250,000 75,300 250,000 75,300 250,000 75,300 250,000 75,300 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $22,700. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal. Recorded entry to reclassify the fund balance.) 17 General Fund Inventory of Supplies Fund Balance-Nonspendable-Inventory of Supplies Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transactions Fund 1. Record the closure of budgetary statements account. 1 General Fund Appropriations 2. Record the closure of operating 2 General Fund Estimated Revenues Budgetary Fund Balance General Journal statements account. Revenues Expenditures Fund Balance-Unassigned Debit 3,442,000 Credit 3,384,000 58,000 Prepare a General Fund balance sheet as of June 30, 2020. CITY OF CASTLETON General Fund Balance Sheet As of June 30, 2020 Assets Cash Taxes Receivable-Delinquent Less: Allowance for Uncollectible Taxes-Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities: Liabilities and Fund Balances Vouchers Payable Deferred Inflows of Resources-Unavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances: Nonspendable Inventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances < Required B $ $ Required D 0 0 0 0 0 Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. CITY OF CASTLETON General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2020 Revenues Taxes Interest and Penalties on Taxes Other Sources Total Revenues Expenditures Salaries and Wages Interest on Note Payable Other Total Expenditures Excess of Revenues over Expenditures Increase in Inventory of Supplies Fund Balances, July 1, 2019 Fund Balances, June 30, 2020 $ 0 0 0 The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources- Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned Debits $ 476,000 601,000 28,080 17,900 $1,122,980 Credits $ 189,120 12,960 166,500 77,490 427,000 17,900 232,010 $1,122,980 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. Transaction Fund / Governmental Activties General Journal 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,500,000 and appropriations totaling $3,442,000. 1 General Fund Estimated Revenues Appropriations Budgetary Fund Balance Governmental Activities No Journal Entry Required Cash Expenditures Tax Anticipation Notes Payable Governmental Activities Cash Expenses Tax Anticipation Notes Payable 2. The city council authorized temporary borrowing of $680,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). 2 General Fund Allowance for Uncollectible Current Taxes Revenues Debit Governmental Activities Taxes Receivable-Current 3,500,000 Allowance for Uncollectible Current Taxes General Revenues 666,400 13,600 666,400 13,600 Credit 3,442,000 58,000 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $50,200,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 3 General Fund Taxes Receivable-Current 2,510,000 2,510,000 680,000 680,000 75,300 2,434,700 75,300 2,434,700 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,240,000. 4 General Fund Encumbrances Encumbrances Outstanding 5a 5b 5. $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 5c Governmental Activities No Journal Entry Required 5d General Fund Governmental Activities 2,240,000 Cash Taxes Receivable-Current Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Taxes Receivable-Delinquent Interest and Penalties Receivable 2,683,640 2,240,000 423,640 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Deferred Inflows of Resources-Unavailable Revenues Revenues 2,260,000 401,270 22,370 2,683,640 423,640 Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Cash Taxes Receivable-Current Taxes Receivable-Delinquent Interest and Penalties Receivable 2,260,000 401,270 22,370 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. No Journal Entry Required 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $40,230, of which 30 percent was estimated to be uncollectible. 6 General Fund Interest and Penalties Receivable 40,230 Allowance for Uncollectible Interest and Penalties Revenues Governmental Activities Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties General Revenues 7. Because of a change in state law, the city was notified that it will receive $116,000 less in intergovernmental revenues than was budgeted. General Fund 7 116,000 Budgetary Fund Balance Estimated Revenues Governmental Activities No Journal Entry Required 8. Delinquent taxes of $13,508 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. 8 General Fund Allowance for Uncollectible Delinquent Taxes 13,508 Allowance for Uncollectible Interest and Penalties 1,005 Taxes Receivable-Delinquent Interest and Penalties Receivable 40,230 Governmental Activities Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 13,508 1,005 12,069 28,161 12,069 28,161 116,000 13,508 1,005 13,508 1,005 9. Total payroll during the year was $999,490. Of that amount, $80,690 was withheld for employees' FICA tax liability, $121,710 for employees' federal income tax liability, and $36,200 for state taxes; the balance was paid to employees in cash. 9 General Fund Expenditures Due to Federal Government Due to State Government Cash Governmental Activities Expenses Due to Federal Government Due to State Government Cash 10. The employer's FICA tax liability was recorded for $80,690. 10 General Fund Expenditures Due to Federal Government Governmental Activities Expenses Due to Federal Government 11. Revenues from sources other than taxes were collected in the amount of $965,000. General Fund 11 Cash Revenues Governmental Activities Cash General Revenues 999,490 999,490 80,690 80,690 965,000 965,000 202,400 36,200 760,890 202,400 36,200 760,890 80,690 80,690 965,000 965,000 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund 13b Due to Federal Government Due to State Government Vouchers Payable 13c Governmental Activities Due to Federal Government Due to State Government Vouchers Payable 13. Purchase orders and contracts encumbered in the amount of $2,168,040 were filled at a net cost of $2,167,570, which was vouchered. General Fund 13a Record the encumbrances outstanding for 2020. Encumbrances Outstanding Encumbrances Record the total expenditures against vouchers payable for 2020. Expenditures Vouchers Payable Governmental Activities Record the total expenses against vouchers payable for 2020. Expenses Vouchers Payable 360,580 36,200 Governmental Activities Vouchers Payable Cash Expenses 360,580 36,200 2,168,040 14. Vouchers payable totaling $2,481,660 were paid after deducting a credit for purchases discount of $9,830 (credit Expenditures). General Fund 14 Vouchers Payable Cash Expenditures 2,167,570 2,167,570 2,481,660 2,481,660 396,780 396,780 2,168,040 2,167,570 2,167,570 2,471,830 9,830 2,471,830 9,830 15. The tax anticipation note of $680,000 was repaid. 15 General Fund Tax Anticipation Notes Payable Cash Governmental Activities Tax Anticipation Notes Payable Cash 680,000 680,000 680,000 680,000 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund 16b 16c 16d 16e 16f Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource Revenues Deferred Inflows of Resources-Unavailable Revenues Governmental Activities Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource No Journal Entry Required 250,000 75,300 250,000 75,300 250,000 75,300 250,000 75,300 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $22,700. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal. Recorded entry to reclassify the fund balance.) 17 General Fund Inventory of Supplies Fund Balance-Nonspendable-Inventory of Supplies Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transactions Fund 1. Record the closure of budgetary statements account. 1 General Fund Appropriations 2. Record the closure of operating 2 General Fund Estimated Revenues Budgetary Fund Balance General Journal statements account. Revenues Expenditures Fund Balance-Unassigned Debit 3,442,000 Credit 3,384,000 58,000 Prepare a General Fund balance sheet as of June 30, 2020. CITY OF CASTLETON General Fund Balance Sheet As of June 30, 2020 Assets Cash Taxes Receivable-Delinquent Less: Allowance for Uncollectible Taxes-Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities: Liabilities and Fund Balances Vouchers Payable Deferred Inflows of Resources-Unavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances: Nonspendable Inventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances < Required B $ $ Required D 0 0 0 0 0 Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. CITY OF CASTLETON General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2020 Revenues Taxes Interest and Penalties on Taxes Other Sources Total Revenues Expenditures Salaries and Wages Interest on Note Payable Other Total Expenditures Excess of Revenues over Expenditures Increase in Inventory of Supplies Fund Balances, July 1, 2019 Fund Balances, June 30, 2020 $ 0 0 0 The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources- Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned Debits $ 476,000 601,000 28,080 17,900 $1,122,980 Credits $ 189,120 12,960 166,500 77,490 427,000 17,900 232,010 $1,122,980 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. Transaction Fund / Governmental Activties General Journal 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,500,000 and appropriations totaling $3,442,000. 1 General Fund Estimated Revenues Appropriations Budgetary Fund Balance Governmental Activities No Journal Entry Required Cash Expenditures Tax Anticipation Notes Payable Governmental Activities Cash Expenses Tax Anticipation Notes Payable 2. The city council authorized temporary borrowing of $680,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). 2 General Fund Allowance for Uncollectible Current Taxes Revenues Debit Governmental Activities Taxes Receivable-Current 3,500,000 Allowance for Uncollectible Current Taxes General Revenues 666,400 13,600 666,400 13,600 Credit 3,442,000 58,000 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $50,200,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 3 General Fund Taxes Receivable-Current 2,510,000 2,510,000 680,000 680,000 75,300 2,434,700 75,300 2,434,700 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,240,000. 4 General Fund Encumbrances Encumbrances Outstanding 5a 5b 5. $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 5c Governmental Activities No Journal Entry Required 5d General Fund Governmental Activities 2,240,000 Cash Taxes Receivable-Current Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Taxes Receivable-Delinquent Interest and Penalties Receivable 2,683,640 2,240,000 423,640 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Deferred Inflows of Resources-Unavailable Revenues Revenues 2,260,000 401,270 22,370 2,683,640 423,640 Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Cash Taxes Receivable-Current Taxes Receivable-Delinquent Interest and Penalties Receivable 2,260,000 401,270 22,370 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. No Journal Entry Required 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $40,230, of which 30 percent was estimated to be uncollectible. 6 General Fund Interest and Penalties Receivable 40,230 Allowance for Uncollectible Interest and Penalties Revenues Governmental Activities Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties General Revenues 7. Because of a change in state law, the city was notified that it will receive $116,000 less in intergovernmental revenues than was budgeted. General Fund 7 116,000 Budgetary Fund Balance Estimated Revenues Governmental Activities No Journal Entry Required 8. Delinquent taxes of $13,508 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. 8 General Fund Allowance for Uncollectible Delinquent Taxes 13,508 Allowance for Uncollectible Interest and Penalties 1,005 Taxes Receivable-Delinquent Interest and Penalties Receivable 40,230 Governmental Activities Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 13,508 1,005 12,069 28,161 12,069 28,161 116,000 13,508 1,005 13,508 1,005 9. Total payroll during the year was $999,490. Of that amount, $80,690 was withheld for employees' FICA tax liability, $121,710 for employees' federal income tax liability, and $36,200 for state taxes; the balance was paid to employees in cash. 9 General Fund Expenditures Due to Federal Government Due to State Government Cash Governmental Activities Expenses Due to Federal Government Due to State Government Cash 10. The employer's FICA tax liability was recorded for $80,690. 10 General Fund Expenditures Due to Federal Government Governmental Activities Expenses Due to Federal Government 11. Revenues from sources other than taxes were collected in the amount of $965,000. General Fund 11 Cash Revenues Governmental Activities Cash General Revenues 999,490 999,490 80,690 80,690 965,000 965,000 202,400 36,200 760,890 202,400 36,200 760,890 80,690 80,690 965,000 965,000 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund 13b Due to Federal Government Due to State Government Vouchers Payable 13c Governmental Activities Due to Federal Government Due to State Government Vouchers Payable 13. Purchase orders and contracts encumbered in the amount of $2,168,040 were filled at a net cost of $2,167,570, which was vouchered. General Fund 13a Record the encumbrances outstanding for 2020. Encumbrances Outstanding Encumbrances Record the total expenditures against vouchers payable for 2020. Expenditures Vouchers Payable Governmental Activities Record the total expenses against vouchers payable for 2020. Expenses Vouchers Payable 360,580 36,200 Governmental Activities Vouchers Payable Cash Expenses 360,580 36,200 2,168,040 14. Vouchers payable totaling $2,481,660 were paid after deducting a credit for purchases discount of $9,830 (credit Expenditures). General Fund 14 Vouchers Payable Cash Expenditures 2,167,570 2,167,570 2,481,660 2,481,660 396,780 396,780 2,168,040 2,167,570 2,167,570 2,471,830 9,830 2,471,830 9,830 15. The tax anticipation note of $680,000 was repaid. 15 General Fund Tax Anticipation Notes Payable Cash Governmental Activities Tax Anticipation Notes Payable Cash 680,000 680,000 680,000 680,000 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund 16b 16c 16d 16e 16f Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource Revenues Deferred Inflows of Resources-Unavailable Revenues Governmental Activities Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource No Journal Entry Required 250,000 75,300 250,000 75,300 250,000 75,300 250,000 75,300 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $22,700. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal. Recorded entry to reclassify the fund balance.) 17 General Fund Inventory of Supplies Fund Balance-Nonspendable-Inventory of Supplies Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transactions Fund 1. Record the closure of budgetary statements account. 1 General Fund Appropriations 2. Record the closure of operating 2 General Fund Estimated Revenues Budgetary Fund Balance General Journal statements account. Revenues Expenditures Fund Balance-Unassigned Debit 3,442,000 Credit 3,384,000 58,000 Prepare a General Fund balance sheet as of June 30, 2020. CITY OF CASTLETON General Fund Balance Sheet As of June 30, 2020 Assets Cash Taxes Receivable-Delinquent Less: Allowance for Uncollectible Taxes-Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities: Liabilities and Fund Balances Vouchers Payable Deferred Inflows of Resources-Unavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances: Nonspendable Inventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances < Required B $ $ Required D 0 0 0 0 0 Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. CITY OF CASTLETON General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2020 Revenues Taxes Interest and Penalties on Taxes Other Sources Total Revenues Expenditures Salaries and Wages Interest on Note Payable Other Total Expenditures Excess of Revenues over Expenditures Increase in Inventory of Supplies Fund Balances, July 1, 2019 Fund Balances, June 30, 2020 $ 0 0 0 The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources- Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned Debits $ 476,000 601,000 28,080 17,900 $1,122,980 Credits $ 189,120 12,960 166,500 77,490 427,000 17,900 232,010 $1,122,980 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. Transaction Fund / Governmental Activties General Journal 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,500,000 and appropriations totaling $3,442,000. 1 General Fund Estimated Revenues Appropriations Budgetary Fund Balance Governmental Activities No Journal Entry Required Cash Expenditures Tax Anticipation Notes Payable Governmental Activities Cash Expenses Tax Anticipation Notes Payable 2. The city council authorized temporary borrowing of $680,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). 2 General Fund Allowance for Uncollectible Current Taxes Revenues Debit Governmental Activities Taxes Receivable-Current 3,500,000 Allowance for Uncollectible Current Taxes General Revenues 666,400 13,600 666,400 13,600 Credit 3,442,000 58,000 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $50,200,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 3 General Fund Taxes Receivable-Current 2,510,000 2,510,000 680,000 680,000 75,300 2,434,700 75,300 2,434,700 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,240,000. 4 General Fund Encumbrances Encumbrances Outstanding 5a 5b 5. $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 5c Governmental Activities No Journal Entry Required 5d General Fund Governmental Activities 2,240,000 Cash Taxes Receivable-Current Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Taxes Receivable-Delinquent Interest and Penalties Receivable 2,683,640 2,240,000 423,640 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Deferred Inflows of Resources-Unavailable Revenues Revenues 2,260,000 401,270 22,370 2,683,640 423,640 Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Cash Taxes Receivable-Current Taxes Receivable-Delinquent Interest and Penalties Receivable 2,260,000 401,270 22,370 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. No Journal Entry Required 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $40,230, of which 30 percent was estimated to be uncollectible. 6 General Fund Interest and Penalties Receivable 40,230 Allowance for Uncollectible Interest and Penalties Revenues Governmental Activities Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties General Revenues 7. Because of a change in state law, the city was notified that it will receive $116,000 less in intergovernmental revenues than was budgeted. General Fund 7 116,000 Budgetary Fund Balance Estimated Revenues Governmental Activities No Journal Entry Required 8. Delinquent taxes of $13,508 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. 8 General Fund Allowance for Uncollectible Delinquent Taxes 13,508 Allowance for Uncollectible Interest and Penalties 1,005 Taxes Receivable-Delinquent Interest and Penalties Receivable 40,230 Governmental Activities Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 13,508 1,005 12,069 28,161 12,069 28,161 116,000 13,508 1,005 13,508 1,005 9. Total payroll during the year was $999,490. Of that amount, $80,690 was withheld for employees' FICA tax liability, $121,710 for employees' federal income tax liability, and $36,200 for state taxes; the balance was paid to employees in cash. 9 General Fund Expenditures Due to Federal Government Due to State Government Cash Governmental Activities Expenses Due to Federal Government Due to State Government Cash 10. The employer's FICA tax liability was recorded for $80,690. 10 General Fund Expenditures Due to Federal Government Governmental Activities Expenses Due to Federal Government 11. Revenues from sources other than taxes were collected in the amount of $965,000. General Fund 11 Cash Revenues Governmental Activities Cash General Revenues 999,490 999,490 80,690 80,690 965,000 965,000 202,400 36,200 760,890 202,400 36,200 760,890 80,690 80,690 965,000 965,000 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund 13b Due to Federal Government Due to State Government Vouchers Payable 13c Governmental Activities Due to Federal Government Due to State Government Vouchers Payable 13. Purchase orders and contracts encumbered in the amount of $2,168,040 were filled at a net cost of $2,167,570, which was vouchered. General Fund 13a Record the encumbrances outstanding for 2020. Encumbrances Outstanding Encumbrances Record the total expenditures against vouchers payable for 2020. Expenditures Vouchers Payable Governmental Activities Record the total expenses against vouchers payable for 2020. Expenses Vouchers Payable 360,580 36,200 Governmental Activities Vouchers Payable Cash Expenses 360,580 36,200 2,168,040 14. Vouchers payable totaling $2,481,660 were paid after deducting a credit for purchases discount of $9,830 (credit Expenditures). General Fund 14 Vouchers Payable Cash Expenditures 2,167,570 2,167,570 2,481,660 2,481,660 396,780 396,780 2,168,040 2,167,570 2,167,570 2,471,830 9,830 2,471,830 9,830 15. The tax anticipation note of $680,000 was repaid. 15 General Fund Tax Anticipation Notes Payable Cash Governmental Activities Tax Anticipation Notes Payable Cash 680,000 680,000 680,000 680,000 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund 16b 16c 16d 16e 16f Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource Revenues Deferred Inflows of Resources-Unavailable Revenues Governmental Activities Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource No Journal Entry Required 250,000 75,300 250,000 75,300 250,000 75,300 250,000 75,300 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $22,700. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal. Recorded entry to reclassify the fund balance.) 17 General Fund Inventory of Supplies Fund Balance-Nonspendable-Inventory of Supplies Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transactions Fund 1. Record the closure of budgetary statements account. 1 General Fund Appropriations 2. Record the closure of operating 2 General Fund Estimated Revenues Budgetary Fund Balance General Journal statements account. Revenues Expenditures Fund Balance-Unassigned Debit 3,442,000 Credit 3,384,000 58,000 Prepare a General Fund balance sheet as of June 30, 2020. CITY OF CASTLETON General Fund Balance Sheet As of June 30, 2020 Assets Cash Taxes Receivable-Delinquent Less: Allowance for Uncollectible Taxes-Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities: Liabilities and Fund Balances Vouchers Payable Deferred Inflows of Resources-Unavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances: Nonspendable Inventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances < Required B $ $ Required D 0 0 0 0 0 Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. CITY OF CASTLETON General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2020 Revenues Taxes Interest and Penalties on Taxes Other Sources Total Revenues Expenditures Salaries and Wages Interest on Note Payable Other Total Expenditures Excess of Revenues over Expenditures Increase in Inventory of Supplies Fund Balances, July 1, 2019 Fund Balances, June 30, 2020 $ 0 0 0 The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources- Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned Debits $ 476,000 601,000 28,080 17,900 $1,122,980 Credits $ 189,120 12,960 166,500 77,490 427,000 17,900 232,010 $1,122,980 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. Transaction Fund / Governmental Activties General Journal 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,500,000 and appropriations totaling $3,442,000. 1 General Fund Estimated Revenues Appropriations Budgetary Fund Balance Governmental Activities No Journal Entry Required Cash Expenditures Tax Anticipation Notes Payable Governmental Activities Cash Expenses Tax Anticipation Notes Payable 2. The city council authorized temporary borrowing of $680,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). 2 General Fund Allowance for Uncollectible Current Taxes Revenues Debit Governmental Activities Taxes Receivable-Current 3,500,000 Allowance for Uncollectible Current Taxes General Revenues 666,400 13,600 666,400 13,600 Credit 3,442,000 58,000 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $50,200,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 3 General Fund Taxes Receivable-Current 2,510,000 2,510,000 680,000 680,000 75,300 2,434,700 75,300 2,434,700 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,240,000. 4 General Fund Encumbrances Encumbrances Outstanding 5a 5b 5. $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 5c Governmental Activities No Journal Entry Required 5d General Fund Governmental Activities 2,240,000 Cash Taxes Receivable-Current Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Taxes Receivable-Delinquent Interest and Penalties Receivable 2,683,640 2,240,000 423,640 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Deferred Inflows of Resources-Unavailable Revenues Revenues 2,260,000 401,270 22,370 2,683,640 423,640 Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Cash Taxes Receivable-Current Taxes Receivable-Delinquent Interest and Penalties Receivable 2,260,000 401,270 22,370 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. No Journal Entry Required 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $40,230, of which 30 percent was estimated to be uncollectible. 6 General Fund Interest and Penalties Receivable 40,230 Allowance for Uncollectible Interest and Penalties Revenues Governmental Activities Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties General Revenues 7. Because of a change in state law, the city was notified that it will receive $116,000 less in intergovernmental revenues than was budgeted. General Fund 7 116,000 Budgetary Fund Balance Estimated Revenues Governmental Activities No Journal Entry Required 8. Delinquent taxes of $13,508 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. 8 General Fund Allowance for Uncollectible Delinquent Taxes 13,508 Allowance for Uncollectible Interest and Penalties 1,005 Taxes Receivable-Delinquent Interest and Penalties Receivable 40,230 Governmental Activities Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 13,508 1,005 12,069 28,161 12,069 28,161 116,000 13,508 1,005 13,508 1,005 9. Total payroll during the year was $999,490. Of that amount, $80,690 was withheld for employees' FICA tax liability, $121,710 for employees' federal income tax liability, and $36,200 for state taxes; the balance was paid to employees in cash. 9 General Fund Expenditures Due to Federal Government Due to State Government Cash Governmental Activities Expenses Due to Federal Government Due to State Government Cash 10. The employer's FICA tax liability was recorded for $80,690. 10 General Fund Expenditures Due to Federal Government Governmental Activities Expenses Due to Federal Government 11. Revenues from sources other than taxes were collected in the amount of $965,000. General Fund 11 Cash Revenues Governmental Activities Cash General Revenues 999,490 999,490 80,690 80,690 965,000 965,000 202,400 36,200 760,890 202,400 36,200 760,890 80,690 80,690 965,000 965,000 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund 13b Due to Federal Government Due to State Government Vouchers Payable 13c Governmental Activities Due to Federal Government Due to State Government Vouchers Payable 13. Purchase orders and contracts encumbered in the amount of $2,168,040 were filled at a net cost of $2,167,570, which was vouchered. General Fund 13a Record the encumbrances outstanding for 2020. Encumbrances Outstanding Encumbrances Record the total expenditures against vouchers payable for 2020. Expenditures Vouchers Payable Governmental Activities Record the total expenses against vouchers payable for 2020. Expenses Vouchers Payable 360,580 36,200 Governmental Activities Vouchers Payable Cash Expenses 360,580 36,200 2,168,040 14. Vouchers payable totaling $2,481,660 were paid after deducting a credit for purchases discount of $9,830 (credit Expenditures). General Fund 14 Vouchers Payable Cash Expenditures 2,167,570 2,167,570 2,481,660 2,481,660 396,780 396,780 2,168,040 2,167,570 2,167,570 2,471,830 9,830 2,471,830 9,830 15. The tax anticipation note of $680,000 was repaid. 15 General Fund Tax Anticipation Notes Payable Cash Governmental Activities Tax Anticipation Notes Payable Cash 680,000 680,000 680,000 680,000 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund 16b 16c 16d 16e 16f Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource Revenues Deferred Inflows of Resources-Unavailable Revenues Governmental Activities Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource No Journal Entry Required 250,000 75,300 250,000 75,300 250,000 75,300 250,000 75,300 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $22,700. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal. Recorded entry to reclassify the fund balance.) 17 General Fund Inventory of Supplies Fund Balance-Nonspendable-Inventory of Supplies Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transactions Fund 1. Record the closure of budgetary statements account. 1 General Fund Appropriations 2. Record the closure of operating 2 General Fund Estimated Revenues Budgetary Fund Balance General Journal statements account. Revenues Expenditures Fund Balance-Unassigned Debit 3,442,000 Credit 3,384,000 58,000 Prepare a General Fund balance sheet as of June 30, 2020. CITY OF CASTLETON General Fund Balance Sheet As of June 30, 2020 Assets Cash Taxes Receivable-Delinquent Less: Allowance for Uncollectible Taxes-Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities: Liabilities and Fund Balances Vouchers Payable Deferred Inflows of Resources-Unavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances: Nonspendable Inventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances < Required B $ $ Required D 0 0 0 0 0 Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. CITY OF CASTLETON General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2020 Revenues Taxes Interest and Penalties on Taxes Other Sources Total Revenues Expenditures Salaries and Wages Interest on Note Payable Other Total Expenditures Excess of Revenues over Expenditures Increase in Inventory of Supplies Fund Balances, July 1, 2019 Fund Balances, June 30, 2020 $ 0 0 0 The City of Castleton's General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year: Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties Inventory of Supplies Vouchers Payable Due to Federal Government Deferred Inflows of Resources- Unavailable Revenues Fund Balance-Nonspendable-Inventory of Supplies Fund Balance-Unassigned Debits $ 476,000 601,000 28,080 17,900 $1,122,980 Credits $ 189,120 12,960 166,500 77,490 427,000 17,900 232,010 $1,122,980 a. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. c. Prepare a General Fund balance sheet as of June 30, 2020. d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. Transaction Fund / Governmental Activties General Journal 1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,500,000 and appropriations totaling $3,442,000. 1 General Fund Estimated Revenues Appropriations Budgetary Fund Balance Governmental Activities No Journal Entry Required Cash Expenditures Tax Anticipation Notes Payable Governmental Activities Cash Expenses Tax Anticipation Notes Payable 2. The city council authorized temporary borrowing of $680,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). 2 General Fund Allowance for Uncollectible Current Taxes Revenues Debit Governmental Activities Taxes Receivable-Current 3,500,000 Allowance for Uncollectible Current Taxes General Revenues 666,400 13,600 666,400 13,600 Credit 3,442,000 58,000 3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $50,200,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible. 3 General Fund Taxes Receivable-Current 2,510,000 2,510,000 680,000 680,000 75,300 2,434,700 75,300 2,434,700 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,240,000. 4 General Fund Encumbrances Encumbrances Outstanding 5a 5b 5. $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end. 5c Governmental Activities No Journal Entry Required 5d General Fund Governmental Activities 2,240,000 Cash Taxes Receivable-Current Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Taxes Receivable-Delinquent Interest and Penalties Receivable 2,683,640 2,240,000 423,640 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. Deferred Inflows of Resources-Unavailable Revenues Revenues 2,260,000 401,270 22,370 2,683,640 423,640 Record the $2,260,000 of current taxes, $401,270 of delinquent taxes, and $22,370 of interest and penalties collected. Cash Taxes Receivable-Current Taxes Receivable-Delinquent Interest and Penalties Receivable 2,260,000 401,270 22,370 Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end. No Journal Entry Required 6. Additional interest and penalties on delinquent taxes were accrued in the amount of $40,230, of which 30 percent was estimated to be uncollectible. 6 General Fund Interest and Penalties Receivable 40,230 Allowance for Uncollectible Interest and Penalties Revenues Governmental Activities Interest and Penalties Receivable Allowance for Uncollectible Interest and Penalties General Revenues 7. Because of a change in state law, the city was notified that it will receive $116,000 less in intergovernmental revenues than was budgeted. General Fund 7 116,000 Budgetary Fund Balance Estimated Revenues Governmental Activities No Journal Entry Required 8. Delinquent taxes of $13,508 were deemed uncollectible and written off. The associated interest and penalties of $1,005 also were written off. 8 General Fund Allowance for Uncollectible Delinquent Taxes 13,508 Allowance for Uncollectible Interest and Penalties 1,005 Taxes Receivable-Delinquent Interest and Penalties Receivable 40,230 Governmental Activities Allowance for Uncollectible Delinquent Taxes Allowance for Uncollectible Interest and Penalties Taxes Receivable-Delinquent Interest and Penalties Receivable 13,508 1,005 12,069 28,161 12,069 28,161 116,000 13,508 1,005 13,508 1,005 9. Total payroll during the year was $999,490. Of that amount, $80,690 was withheld for employees' FICA tax liability, $121,710 for employees' federal income tax liability, and $36,200 for state taxes; the balance was paid to employees in cash. 9 General Fund Expenditures Due to Federal Government Due to State Government Cash Governmental Activities Expenses Due to Federal Government Due to State Government Cash 10. The employer's FICA tax liability was recorded for $80,690. 10 General Fund Expenditures Due to Federal Government Governmental Activities Expenses Due to Federal Government 11. Revenues from sources other than taxes were collected in the amount of $965,000. General Fund 11 Cash Revenues Governmental Activities Cash General Revenues 999,490 999,490 80,690 80,690 965,000 965,000 202,400 36,200 760,890 202,400 36,200 760,890 80,690 80,690 965,000 965,000 12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered. 12 General Fund 13b Due to Federal Government Due to State Government Vouchers Payable 13c Governmental Activities Due to Federal Government Due to State Government Vouchers Payable 13. Purchase orders and contracts encumbered in the amount of $2,168,040 were filled at a net cost of $2,167,570, which was vouchered. General Fund 13a Record the encumbrances outstanding for 2020. Encumbrances Outstanding Encumbrances Record the total expenditures against vouchers payable for 2020. Expenditures Vouchers Payable Governmental Activities Record the total expenses against vouchers payable for 2020. Expenses Vouchers Payable 360,580 36,200 Governmental Activities Vouchers Payable Cash Expenses 360,580 36,200 2,168,040 14. Vouchers payable totaling $2,481,660 were paid after deducting a credit for purchases discount of $9,830 (credit Expenditures). General Fund 14 Vouchers Payable Cash Expenditures 2,167,570 2,167,570 2,481,660 2,481,660 396,780 396,780 2,168,040 2,167,570 2,167,570 2,471,830 9,830 2,471,830 9,830 15. The tax anticipation note of $680,000 was repaid. 15 General Fund Tax Anticipation Notes Payable Cash Governmental Activities Tax Anticipation Notes Payable Cash 680,000 680,000 680,000 680,000 16. All unpaid current year's property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year. 16a General Fund 16b 16c 16d 16e 16f Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource Revenues Deferred Inflows of Resources-Unavailable Revenues Governmental Activities Record the delinquent amount of unpaid property taxes. Taxes Receivable-Delinquent Taxes Receivable-Current Record the adjustment for the delinquent amount of tax against the allowance. Allowance for Uncollectible Current Taxes Allowance for Uncollectible Delinquent Taxes Record the deferred inflow of resource No Journal Entry Required 250,000 75,300 250,000 75,300 250,000 75,300 250,000 75,300 17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $22,700. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal. Recorded entry to reclassify the fund balance.) 17 General Fund Inventory of Supplies Fund Balance-Nonspendable-Inventory of Supplies Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transactions Fund 1. Record the closure of budgetary statements account. 1 General Fund Appropriations 2. Record the closure of operating 2 General Fund Estimated Revenues Budgetary Fund Balance General Journal statements account. Revenues Expenditures Fund Balance-Unassigned Debit 3,442,000 Credit 3,384,000 58,000 Prepare a General Fund balance sheet as of June 30, 2020. CITY OF CASTLETON General Fund Balance Sheet As of June 30, 2020 Assets Cash Taxes Receivable-Delinquent Less: Allowance for Uncollectible Taxes-Delinquent Interest and Penalties Receivable Less: Allowance for Uncollectible Interest and Penalties Inventory of Supplies Total Assets Liabilities: Liabilities and Fund Balances Vouchers Payable Deferred Inflows of Resources-Unavailable Revenues Total Liabilities and Deferred Inflows of Resources Fund Balances: Nonspendable Inventory of Supplies Unassigned Total Fund Balances Total Liabilities and Fund Balances < Required B $ $ Required D 0 0 0 0 0 Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements. CITY OF CASTLETON General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2020 Revenues Taxes Interest and Penalties on Taxes Other Sources Total Revenues Expenditures Salaries and Wages Interest on Note Payable Other Total Expenditures Excess of Revenues over Expenditures Increase in Inventory of Supplies Fund Balances, July 1, 2019 Fund Balances, June 30, 2020 $ 0 0 0
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Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
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