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:


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.


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  • CreatedOctober 25, 2014
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