The Town of Tyler approved the following general fund budget for the fiscal year July 1, 2014,

Question:

The Town of Tyler approved the following general fund budget for the fiscal year July 1, 2014, to

June 30, 2015:

TOWN OF TYLER GENERAL FUND BUDGET SUMMARY

FOR THE YEAR JULY 1, 2014 TO JUNE 30, 2015

Revenue Sources

Taxes............................................................$250,000

Licenses and permits.............................................20,000

Intergovernmental revenue......................................40,000

Charges for services..............................................60,000

Fines and forfeits.................................................15,000

Rents and royalties...............................................10,000

Miscellaneous revenues...........................................5,000

Total budgeted revenues.....................................$400,000

TOWN OF TYLER GENERAL FUND BUDGET SUMMARY

FOR THE YEAR JULY 1, 2014 TO JUNE 30, 2015

Expenditures

Current services

General government.......................................$45,000

Public safety................................................140,000

Highways and streets.......................................90,000

Sanitation.....................................................55,000

Health and welfare..........................................20,000

Recreation....................................................30,000

Capital outlays...............................................15,000

Total appropriations......................................$395,000

Budgeted increase in fund balance.......................$5,000

The after-closing trial balance of the Town of Tyler general fund at June 30, 2014, shows the following ledger account balances:

Debits

Cash.......................................$31,000

Tax receivable-delinquent..............15,000

Accounts receivable.........................3,000

Supplies inventory..........................6,000

Total debits...............................$55,000

Credits

Allowances for uncollectible taxes-delinquent................$1,000

Vouchers payable....................................................14,000

Note payable (short-term)..........................................15,000

Fund balance-committed..........................................9,000

Fund balance-non-spendable.......................................6,000

Fund balance-unassigned........................................10,000

Total credits........................................................$55,000

1. Prepare journal entries to record the budget and each of the following transactions:

a. The treasurer of Tyler sends out property tax bills of $200,000; 1 percent is considered uncollectible.

b. Current property taxes of $176,000 and past-due taxes of $14,000 were collected.

c. A specific property tax bill ($1,000) is determined to be uncollectible.

d. Fees in the amount of $20,000 are collected for hunting licenses.

e. Other revenues in the amount of $200,000 are collected.

f. The payroll for salaries of $20,000 is vouchered for payment.

g. Playground equipment expected to cost $15,000 is ordered.

h. The playground equipment is received and has an actual cost of $14,000.

i. Tyler received equipment that had been ordered in the previous fiscal year. The actual cost was $9,500.

j. Supplies in the amount of $11,000 were ordered. By year-end, only $5,000 worth of these supplies has been received. The consumption method is used.

k. The note payable that was outstanding at June 30, 2014, becomes due and is paid.

l. Various expenditures are paid throughout the year totaling $348,040.

m. Supplies in the amount of $3,000 are on hand at year-end.

n. Assume that uncollected taxes on June 30, 2014, are past due.

o. Closing entries are made.

2. Prepare a budgetary comparison statement for the Tyler general fund.

3. Identify the transactions above that will be reconciling items between the fund financial statements and the government-wide financial statements.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Advanced Accounting

ISBN: 978-0133451863

12th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

Question Posted: