Waynesville had the following General Fund trial balance on January 1, 20X1, after the reversing entry for the 20X0 encumbrances closing entry was made:

The following information summarizes the transactions of the General Fund during 20X1:
1. The city council approved the following budget for 20X1:
Expenditures: 
City Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000
Police Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13,000
Fire Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10,000
Streets and Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20,000
  $63,000
Revenues: 
Property Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $75,000
Fines and Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
  $85,000
2. The council levied property taxes of $75,000. It was estimated that $2,000 of the taxes would never be collected.
3. Cash collected during the year may be summarized as follows:
Prior years’ levies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,000
20X1 levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,000
Fines and fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,000
Taxes written off in prior years . . . . . . . . . . . . . . . . . . . . . 500
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
Service charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,000
  $98,000
4. With council approval, $5,000 was borrowed on a 90-day note.
5. Orders placed during the year were as follows:
City Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,000
Police Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,000
Fire Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,000
Streets and Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5,000
  $15,000
6. Payrolls vouchered during the year were as follows:
City Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000
Police Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7,000
Fire Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,500
Streets and Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000
  $42,500
7. Invoices vouchered during the year were as follows:
City Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,500
Police Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,100
Fire Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,000
Streets and Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,000
Repayment of note plus interest (see item 4) . . . . . . . . .5,200
  $22,800
The preceding invoices completed all orders except one, dated June 1, 20X1, for an attachment for a Streets and Roads road grader for $950.
8. Payments to other funds:

9. Analysis of collections revealed that taxpayer A, to whom the city owed $1,000 on January 1, 20X1, for overpayment of taxes, had paid his tax for 20X1 minus $1,000.
10. The Streets and Roads Department rendered services in the amount of $250 to the Water Fund.
11. The city council made an additional appropriation in the amount of $5,000 (including $600 interest) for a long-term note maturity that was overlooked in preparing the budget.
12. The note matured and was vouchered.
13. Vouchers of $70,000 were paid.
14. Delinquent taxes of $500 were written off on the authority of the council.
15. Current taxes became delinquent, and the allowance for uncollectible delinquent taxes was reduced by $2,400.

Required
a. Prepare a worksheet or worksheets summarizing the year’s operations in such a way that the General Ledger closing entries and required statements may be easily prepared.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the
General Fund of Waynesville for the year ended December 31,20X1.

Transcribed Image Text:

7,000 48,000 Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes Due from Water Fund Vouchers Payable Due to Taxpayers ENCUMBRANCES Deferred Revenu ENCUMBRANCES OUTSTANDING. Fund Balance.... S 4,000 500 11,000 1,000 3,000 3,000 3,000 36,500 S58,500 es $58,50) Fund Purpose Amout Debt Service Capital Projects Water Fund 8,000 City contribution to construction of city park facilities15,000 1.500 24500 Provide for payment of bond principal and interest Water supply for Streets and Roads Department