****Please answer question # 1.****

1AF-10-2012 07:43P FROM: I CHOICE LLC 9145123003 TO:5123000 P.2 Practice Set CHART OF ACCOUNTS General Fund -General Ledger Account Codes Assets A200 Cash A201 Cash in Time Deposits A250 Taxes Receivable, Current A410 State and Federal, Other A440 Due from Other Governments Budgetary and Expenditure Accounts A510 Estimated Revenues A521 Encumbrances A$22 Expenditures A599 Appropriated Fund Balance Liabilities A600 Accounts Payable A601 Accrued Liabilities Fund Balance, Reserved A821 Reserve for Encumbrances Fund Balance, Unreserved A909 Fund Balance, Unreserved Budgetary and Revenue Accounts A960 Appropriations A980 Revenues 2 MAR-15-2010 07:43F FROM: I CHOICE LLC 9145123000 TO: 3123000 P.3 Practice Set Kor.B General Fund - Individual Revenue and Expenditure Account Codes Revenue Account Codes A1001 A1090 A1120 A1255 A3820 Real Property Taxes Interest on Taxes Non-Property Tax Distribution by County (Sales Tax) Clerk Fees Youth Programs Expenditure Account Codes A1990.4 A3120.1 A3120.2 A3120.4 A7110.1 A7110.2 A7110.4 Contingent Account Police - Personal Services Police-Equipment and Other Capital Outlay Police - Contractual Expenditure Parks - Personal Services Parks - Equipment and Other Capital Outlay Parks - Contractual Expenditure Practice Set - Assumptions and Exhibits The following assumptions and exhibits will be used in preparing the practice set. The Town's opening balances are: 200 410 440 909 Cash State and Federal, Other Due from Other Governments Fund Balance $40,000 $10,000 $10,000 $60,000 (General Ledgers are already posted) Exhibit. A The following budget was approved for 20XX year: $ 100,000 A510 Estimated Revenues A1001 Real Property Taxes A1120 Sales Tax A3820 State Aid A599 Appropriated Fund Balance $50,000 40,000 10,000 $ 30,000 A960 Appropriations $ 130,000 INTRODUCTION TO GOVERWHENTAL ACCOUNTING 3 MAR 10 2010 07:43T CROM: I CLOICC LLC 9145123000 TO: 5123000 1.4 Practice Set Appropriation Subsidiaries A31201 A3120.2 A3120.4 A7110.1 A7110.2 A7110.4 A1990.4 Police - Personal Services Police-Equipment Police - Contractual Parks - Personal Services Parks - Equipment Parks - Contractual Contingent Account $ 50,000 21,000 11,000 25,000 12,000 10,000 1.000 $130.000 Exhibit. The following payrolls were prepared and recorded during the first two months. The town pays all employees on a bi- weekly basis. Payroll #1 Police 3120.1 $1,500.00 Parks 7110.1 $ 750.00 (only gross payroll entries will be made) Police Payroll #2 3120,1 7110.1 $ 1,500.00 $ 750.00 Parks Police Parks Payroll #3 3120.1 7110.1 $ 1,500.00 $ 750.00 Palice Parks Payroll #4 3120.1 7110.1 $ 1,500.00 $ 750.00 4 MAR-10-2010 07:43P FROM: I CHOICE LLC 9145123000 TO:5123000 P.5 Practice Set PROFB The following abstracts were paid during the two month period of our practice set. Exhlbltc Abstract #1 Check # Clalm # 1 2 3 4 5 Clalmant ABC Park Equipment Lewis Uniforms Handy Plumbing King Hardware Eager Janitorial Service Account 7110.2 3120,4 7110.4 7110.4 3120.4 Amount $ 300.00 500.00 100.00 250.00 100.00 $1,250.00 Summary 3120.4 7110.2 7110.4 $ 600.00 300.00 350.00 $1,250,000 Abstract #2 Check # Claim # 6 7 8 9 to Clalmant Jack's Printing Company XYZ Equipment Jones Lumber Handy Plumbing Lewis Uniforms Account 7110.4 3120.2 7110.4 7110.4 3120.4 Amount 200.00 *12,400.00 100.00 100.00 400.00 $13.200.00 Summary 3120.2 $ 12,400.00 3120.4 400.00 7110.4 400.00 $13,200.00 * This was originally encumbered. INTRODUCTION TO GOVERNMENTAL ACCOUNTING 5 MAR-10-2010 07:44P FROM: I CHOICE LLC 9145123000 TO: 5123000 P.6 Practice Set A. Accounting Entries January 2 The budget included in Exhibit A is journalized and posted to the appropriate ledgers. January 2 Real Property Tax bills are prepared and malled amounting to $50,000. January 5 Sales Tax Revenues ($10,000) for the 4" quarter of last year is received. January 10 A State aid youth claim is prepared and submitted for $1,000. Moneys are anticipated to be received during the town's fiscal year. January 15 Payroll #1 in Exhibit B is paid. January 20 Received prior year State aid claim accrued minus $500 disallowance. January 29 Payrolt #2 in Exhibit B is paid. January 30 Abstract #1 in Exhibit C is paid. January 31 Tax Collector rernits tax moneys in the amount of $40,000. February 1 The Police Department issues purchase order #1 for equipment (3120.2) in the amount of $13,000. February 2 Receives State aid for youth program in the amount of $1,100 ($100 adjustment for mathematical mistake). February 10 Tax Collector submits balance of taxes ($10,000) in addition to $200 in interest. February 16 Payroll #3 in Exhibit B is paid. February 17 The Police Department issues purchase order #2 for equipment in the amount of $9,000. (Hint: If there is insufficient appropriatlons, transfer from 3120.4.) February 22 - Paid Abstract Exhibit C 6 MER-10-2010 07:47P FROM: I CHOICE LLC 9:45123000 TO:5123000 P.7 Practice Set February 28 Record Payroll #4 Exhibit B. Payroll should charge 80 percent to month of February, 20 percent should be attributed to March. B. Adjusting Entries 1. Park equipment in the amount of $4,000. (7110.2) was received but never recorded. 2. A State aid claim has just been submitted $5,000 (youth program). C. Prepare Closing Entries D. Prepare Year-End Financial Statements (Form of Statements in Packet) INTRODUCTION TO GOVERNMENTAL ACCOUNTING 7 MAR-10-2010 08:01P FROM: I CHOICE LLC 9145123000 TO:5123000 P.1 Practice Set E. Prepare Interim Financial Statement - Expenditures/Expenses (Form at the end of Packet) GENERAL JOURNAL Page No. 1 Date 20XX Account and Explanation Ref. Debit Credit 8 1AF-10-2012 07:43P FROM: I CHOICE LLC 9145123003 TO:5123000 P.2 Practice Set CHART OF ACCOUNTS General Fund -General Ledger Account Codes Assets A200 Cash A201 Cash in Time Deposits A250 Taxes Receivable, Current A410 State and Federal, Other A440 Due from Other Governments Budgetary and Expenditure Accounts A510 Estimated Revenues A521 Encumbrances A$22 Expenditures A599 Appropriated Fund Balance Liabilities A600 Accounts Payable A601 Accrued Liabilities Fund Balance, Reserved A821 Reserve for Encumbrances Fund Balance, Unreserved A909 Fund Balance, Unreserved Budgetary and Revenue Accounts A960 Appropriations A980 Revenues 2 MAR-15-2010 07:43F FROM: I CHOICE LLC 9145123000 TO: 3123000 P.3 Practice Set Kor.B General Fund - Individual Revenue and Expenditure Account Codes Revenue Account Codes A1001 A1090 A1120 A1255 A3820 Real Property Taxes Interest on Taxes Non-Property Tax Distribution by County (Sales Tax) Clerk Fees Youth Programs Expenditure Account Codes A1990.4 A3120.1 A3120.2 A3120.4 A7110.1 A7110.2 A7110.4 Contingent Account Police - Personal Services Police-Equipment and Other Capital Outlay Police - Contractual Expenditure Parks - Personal Services Parks - Equipment and Other Capital Outlay Parks - Contractual Expenditure Practice Set - Assumptions and Exhibits The following assumptions and exhibits will be used in preparing the practice set. The Town's opening balances are: 200 410 440 909 Cash State and Federal, Other Due from Other Governments Fund Balance $40,000 $10,000 $10,000 $60,000 (General Ledgers are already posted) Exhibit. A The following budget was approved for 20XX year: $ 100,000 A510 Estimated Revenues A1001 Real Property Taxes A1120 Sales Tax A3820 State Aid A599 Appropriated Fund Balance $50,000 40,000 10,000 $ 30,000 A960 Appropriations $ 130,000 INTRODUCTION TO GOVERWHENTAL ACCOUNTING 3 MAR 10 2010 07:43T CROM: I CLOICC LLC 9145123000 TO: 5123000 1.4 Practice Set Appropriation Subsidiaries A31201 A3120.2 A3120.4 A7110.1 A7110.2 A7110.4 A1990.4 Police - Personal Services Police-Equipment Police - Contractual Parks - Personal Services Parks - Equipment Parks - Contractual Contingent Account $ 50,000 21,000 11,000 25,000 12,000 10,000 1.000 $130.000 Exhibit. The following payrolls were prepared and recorded during the first two months. The town pays all employees on a bi- weekly basis. Payroll #1 Police 3120.1 $1,500.00 Parks 7110.1 $ 750.00 (only gross payroll entries will be made) Police Payroll #2 3120,1 7110.1 $ 1,500.00 $ 750.00 Parks Police Parks Payroll #3 3120.1 7110.1 $ 1,500.00 $ 750.00 Palice Parks Payroll #4 3120.1 7110.1 $ 1,500.00 $ 750.00 4 MAR-10-2010 07:43P FROM: I CHOICE LLC 9145123000 TO:5123000 P.5 Practice Set PROFB The following abstracts were paid during the two month period of our practice set. Exhlbltc Abstract #1 Check # Clalm # 1 2 3 4 5 Clalmant ABC Park Equipment Lewis Uniforms Handy Plumbing King Hardware Eager Janitorial Service Account 7110.2 3120,4 7110.4 7110.4 3120.4 Amount $ 300.00 500.00 100.00 250.00 100.00 $1,250.00 Summary 3120.4 7110.2 7110.4 $ 600.00 300.00 350.00 $1,250,000 Abstract #2 Check # Claim # 6 7 8 9 to Clalmant Jack's Printing Company XYZ Equipment Jones Lumber Handy Plumbing Lewis Uniforms Account 7110.4 3120.2 7110.4 7110.4 3120.4 Amount 200.00 *12,400.00 100.00 100.00 400.00 $13.200.00 Summary 3120.2 $ 12,400.00 3120.4 400.00 7110.4 400.00 $13,200.00 * This was originally encumbered. INTRODUCTION TO GOVERNMENTAL ACCOUNTING 5 MAR-10-2010 07:44P FROM: I CHOICE LLC 9145123000 TO: 5123000 P.6 Practice Set A. Accounting Entries January 2 The budget included in Exhibit A is journalized and posted to the appropriate ledgers. January 2 Real Property Tax bills are prepared and malled amounting to $50,000. January 5 Sales Tax Revenues ($10,000) for the 4" quarter of last year is received. January 10 A State aid youth claim is prepared and submitted for $1,000. Moneys are anticipated to be received during the town's fiscal year. January 15 Payroll #1 in Exhibit B is paid. January 20 Received prior year State aid claim accrued minus $500 disallowance. January 29 Payrolt #2 in Exhibit B is paid. January 30 Abstract #1 in Exhibit C is paid. January 31 Tax Collector rernits tax moneys in the amount of $40,000. February 1 The Police Department issues purchase order #1 for equipment (3120.2) in the amount of $13,000. February 2 Receives State aid for youth program in the amount of $1,100 ($100 adjustment for mathematical mistake). February 10 Tax Collector submits balance of taxes ($10,000) in addition to $200 in interest. February 16 Payroll #3 in Exhibit B is paid. February 17 The Police Department issues purchase order #2 for equipment in the amount of $9,000. (Hint: If there is insufficient appropriatlons, transfer from 3120.4.) February 22 - Paid Abstract Exhibit C 6 MER-10-2010 07:47P FROM: I CHOICE LLC 9:45123000 TO:5123000 P.7 Practice Set February 28 Record Payroll #4 Exhibit B. Payroll should charge 80 percent to month of February, 20 percent should be attributed to March. B. Adjusting Entries 1. Park equipment in the amount of $4,000. (7110.2) was received but never recorded. 2. A State aid claim has just been submitted $5,000 (youth program). C. Prepare Closing Entries D. Prepare Year-End Financial Statements (Form of Statements in Packet) INTRODUCTION TO GOVERNMENTAL ACCOUNTING 7 MAR-10-2010 08:01P FROM: I CHOICE LLC 9145123000 TO:5123000 P.1 Practice Set E. Prepare Interim Financial Statement - Expenditures/Expenses (Form at the end of Packet) GENERAL JOURNAL Page No. 1 Date 20XX Account and Explanation Ref. Debit Credit 8