QUESTION 1

Exercise Governmental Accounting

Part I: General Fund Journal Entries

City of Good Citizen has the following transactions during fiscal year 2009.

(a) The legal budget for the year provided for $5,040,000 of estimated revenues and $4,960,000 appropriations.

(b) Assume there are $ 150,000 of purchase orders outstanding at the end of last year and that these will be honored in the current year. Prepare the entries to re-establish the encumbrance.

(c) Property taxes were levied in the amount of $3,200,000. It is estimated that 2.5 percent of the taxes will never be collected. Note: The $3,200,000 is the final calculation. Do not re-calculate the property taxes.

Purchase orders were issued for equipment and supplies in the amount of $3,040,000.

Supplies, relating to all of the prior year purchase orders ($150,000), were received along with invoices amounting to $144,000.

Equipment and supplies related to current year purchase orders ($3,040,000), were received along with invoices amounting to $3,046,000.

Accounts payable were paid in the amount of $3,190,000.

Salaries were paid in the amount of $1,000,000. Do not use encumbrance account.

Collections of current property taxes amounted to $2,750,000.

It was estimated that $190,000 in property taxes would be collected in the first 60 days of 2010 and that $180,000 would be collected in later periods.

Required: Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2009. Use modified accrual accounting in Excel Format

Parte II:

The City of Stromfield had the following partial list of account balances (trial balance) in its General Fund as of June 30, 2009

Appropriations Control

Budgetary Fund Balance

Reserve for Encumbrances

Due to other Funds

Encumbrances Control

Estimated other Financing Uses Control

Estimated Revenues Control

Expenditures Control

Fund Balance Unreserved

Other Financing Uses Control-Transfer Out

Revenues Control

Taxes Receivable

Vouchers Payable

Required:

a) Prepare the Statement of Revenues, Expenditures and Change in Fund Balances in Excel Format

QUESTION 1 Exercise-Governmental Accounting Part I: General Fund Journal Entries City of Good Citizen has the following transactions during fiscal year 2009 (a) The legal budget for the year provided for $5.040,000 of estimated revenues and 54,960,000 appropriations (b) Assume there are $ 150,000 of purchase orders outstanding at the end of last year and that these will be honored in the current year. Prepare the entries to re- establish the encumbrance. (c) Property taxes were levied in the amount of $3,200,000. It is estimated that 2.5 percent of the taxes will never be collected. Note: The $3,200,000 is the final calculation. Do not re-calculate the property taxes. Purchase orders were issued for equipment and supplies in the amount of $3,040,000 Supplies, relating to all of the prior year purchase orders (S150.000), were received along with invoices amounting to $144,000. Equipment and supplies related to current year purchase orders ($3,040,000), were received along with invoices amounting to $3,046,000 Accounts payable were paid in the amount of $3.190.000 Salaries were paid in the amount of $1,000,000. Do not use encumbrance account. Collections of current property taxes amounted to $2.750.000 It was estimated that $190,000 in property taxes would be collected in the first 60 days of 2010 and that SI 0,000 would be collected in later periods. Required: Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2009. Use modified accrual accounting in Excel Format Parte II: The City of Stromfield had the following partial list of account balances (trial balance) in its General Fund as of June 30, 2009 Appropriations Control Budgetary Fund Balance Reserve for Encumbrances Due to other Funds Encumbrances Control Estimated other Financing Uses Control Estimated Revenues Control Expenditures Control Fund Balance - Unreserved Other Financing Uses Control-Transfer Out Revenues Control Taxes Receivable Vouchers Payable Required: a) Prepare the Statement of Revenues, Expenditures and Change in Fund Balances in Excel Format