The chief accountant for Ramsey City needed to make adjusting entries before preparing the citys financial statements
Question:
The chief accountant for Ramsey City needed to make adjusting entries before preparing the city’s financial statements for calendar year 2022. She wrote a brief paragraph to guide her assistant in making the adjusting entries for the General Fund and then gave her assistant data regarding the accounts that might be affected by the adjustments.
Use the following information to make the year-end adjusting journal entries, if needed. Identify the expenditure accounts at the object-of-expenditure level.
1. At December 31, the Property taxes receivable account showed a balance of $420,000, all of which was considered to be collectible. She estimated that $315,000 of that amount would be collected in the first 60 days of 2023.
2. City employees are allowed to accumulate up to 30 days’ vacation leave and to get cash for unused leave when they are terminated or retire. The total liability to city employees for earned, but unused, vacation leave increased from $1,210,000 to $1,290,000 during 2022. Two employees retired during the last week of December and will be paid $22,000 for unused leave with their final paychecks in January.
