Question

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

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