The Town of Jones Falls finances its operations from revenues collected from property taxes, waste management...

 

  
 

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The Town of Jones Falls finances its operations from revenues collected from property taxes, waste management fees, municipal court fines, and interest on investments. Jones Falls maintains only a general fund. Suppose the following information is available for the year ended September 30, 2020: 1. Following is the general fund trial balance on October 1, 2019: Dr (Cr) $5,000,000 2,500,000 515,000 550,000 (515,000) (8,050,000) Investments Cash Waste management supplies Accounts receivable-waste management Fund balance-nonspendable Fund balance-unassigned Total 2. The budget for fiscal 2020, adopted by the town board, follows: Property taxes Waste management costs Court costs Waste management revenues Court fines Salaries and operating expenditures Investment income Supplies expenditures Miscellaneous expenditures $3,200,000 4,300,000 950,000 3,700,000 800,000 $0 920,000 400,000 250,000 180,000 3. All property taxes were collected in cash. Waste management costs, all paid in cash, were $4,290,000. Court costs, all paid in cash, were $920,000. 4. Waste management revenues of $2,800,000 were billed during the year. All outstanding waste management bills on October 1, 2019, were collected during fiscal 2020. All fiscal 2020 billings were paid with the exception of $320,000, which were mailed to customers the last week of the fiscal year. 5. Court fines of $850,000 were collected in cash. Salaries and operating expenditures, all paid in cash, were $880,000. Investment income of $450,000 accumulates in the investments account until the investments mature. No investments matured in fiscal 2020. 6. Miscellaneous expenditures, all paid in cash, were $160,000. 7. Waste management supplies on hand at year-end were $265,000. The town uses the consumption method to report supplies. For all numerical answers, enter all zeros - do not abbreviate to millions or thousands. a. Prepare fiscal 2020 journal entries to record the above events and to close the books for the year. General Fund Journal Estimated revenues Description Fund balance unassigned Appropriations To record 2020 budget. Taxes receivable Tax revenues To accrue taxes receivable. Cash Taxes receivable To record collection of property taxes. Waste management expenditures Cash + ♦ + → + : ✔ ✓ ✓ ✓ ✓ ✔ Debit 3,700,000 x 0✓ 0✔ 3,200,000 ✓ 0✓ 5,000,000 x 0✔ 2,500,000 * 0✓ Credit 0 3,700,000 x 3,700,000 x 0✔ 3,200,000 ✓ 0✓ 5,000,000 x 0 2,500,000 * To record expenditures for waste management. Court expenditures Cash To record expenditures for court costs. Cash Accounts receivable -- waste management To record receipt of payment on 2019 waste management bills. Cash Accounts receivable -- waste management Waste management revenues To record revenues from waste management. Cash Court fines To record revenues from court fines. Salaries and operating expenditures Cash To record salaries and operating expenditures. Investments Interest revenue To record interest revenue from investments Miscellaneous expenditures Cash To record miscellaneous expenditures. Supplies expenditures Waste management supplies To record consumption of supplies inventory. Fund balance -- nonspendable Fund balance -- unassigned To adjust the nonspendable fund balance. O O → O O 47 O 46 O O > > S > S > S S 2,500,000 * 2,500,000 * 0✓ 0 x 0x 0✓ 0 x 0✓ 0x 0✔ 0 x 0✓ 0 x 0x 0✓ 0 x 0✓ 0 2,500,000 x 0 2,500,000 * 0✓ 0 0x 0 ✓ 0x 0✔ 0x 0✓ 0x 0 ✓ 0x 0✔ 0x 0✓ 0x Closing entries: Tax revenues Waste management revenues Court fines Interest revenue Fund balance -- unassigned Estimated revenues To close revenues to fund balance. Appropriations Waste management expenditures Court expenditures Salaries and operating expenditures Miscellaneous expenditures Supplies expenditures Fund balance -- unassigned To close expenditures to fund balance. Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended September 30, 2020 Revenues: Property taxes Waste management Court fines Interest ♦ ✓ ♦ ✔ $ 0x 0 x 0x 0 x 0x 0✓ 0 x 0x 0 x 0x 0x 0 x 0 ✓ 0✔ 0✓ 0✓ 0✔ 0✔ b. Prepare a statement of revenues, expenditures, and changes in fund balances for fiscal 2020, and the balance sheet at September 30, 2020, for Jones Falls' general fund. Use a negative sign with your answer for excess of revenues over (under) expenditures, if "under" applies. Otherwise, do not use negative signs with your answers. Town of Jones Falls General Fund 0✔ 0✔ 0✔ 0✓ 0✔ 0x 0✔ 0x 0x 0x 0x 0x 0 x Waste management Court fines Interest Expenditures: Waste management Court costs Salaries and expenditures Supplies Miscellaneous Total expenditures Excess of revenues over (under) expenditures Fund balance - October 1, 2019 Fund balance -- September 30, 2020 Assets Cash Investments Account receivable waste mgmt. Waste mgmt. supplies $ $ $ 0x 0 x 0x 0 x 0 x 0x 0x 0x 0 x 0x 0x 0x 0 x Town of Jones Falls General Fund Balance Sheet September 30, 2020 Liabilities and fund balance 0 x Fund balance -- nonspendable $ 0 x Fund balance -- unassigned 0 x 0x 0 x $ 0 x 0 x 0 x The Town of Jones Falls finances its operations from revenues collected from property taxes, waste management fees, municipal court fines, and interest on investments. Jones Falls maintains only a general fund. Suppose the following information is available for the year ended September 30, 2020: 1. Following is the general fund trial balance on October 1, 2019: Dr (Cr) $5,000,000 2,500,000 515,000 550,000 (515,000) (8,050,000) Investments Cash Waste management supplies Accounts receivable-waste management Fund balance-nonspendable Fund balance-unassigned Total 2. The budget for fiscal 2020, adopted by the town board, follows: Property taxes Waste management costs Court costs Waste management revenues Court fines Salaries and operating expenditures Investment income Supplies expenditures Miscellaneous expenditures $3,200,000 4,300,000 950,000 3,700,000 800,000 $0 920,000 400,000 250,000 180,000 3. All property taxes were collected in cash. Waste management costs, all paid in cash, were $4,290,000. Court costs, all paid in cash, were $920,000. 4. Waste management revenues of $2,800,000 were billed during the year. All outstanding waste management bills on October 1, 2019, were collected during fiscal 2020. All fiscal 2020 billings were paid with the exception of $320,000, which were mailed to customers the last week of the fiscal year. 5. Court fines of $850,000 were collected in cash. Salaries and operating expenditures, all paid in cash, were $880,000. Investment income of $450,000 accumulates in the investments account until the investments mature. No investments matured in fiscal 2020. 6. Miscellaneous expenditures, all paid in cash, were $160,000. 7. Waste management supplies on hand at year-end were $265,000. The town uses the consumption method to report supplies. For all numerical answers, enter all zeros - do not abbreviate to millions or thousands. a. Prepare fiscal 2020 journal entries to record the above events and to close the books for the year. General Fund Journal Estimated revenues Description Fund balance unassigned Appropriations To record 2020 budget. Taxes receivable Tax revenues To accrue taxes receivable. Cash Taxes receivable To record collection of property taxes. Waste management expenditures Cash + ♦ + → + : ✔ ✓ ✓ ✓ ✓ ✔ Debit 3,700,000 x 0✓ 0✔ 3,200,000 ✓ 0✓ 5,000,000 x 0✔ 2,500,000 * 0✓ Credit 0 3,700,000 x 3,700,000 x 0✔ 3,200,000 ✓ 0✓ 5,000,000 x 0 2,500,000 * To record expenditures for waste management. Court expenditures Cash To record expenditures for court costs. Cash Accounts receivable -- waste management To record receipt of payment on 2019 waste management bills. Cash Accounts receivable -- waste management Waste management revenues To record revenues from waste management. Cash Court fines To record revenues from court fines. Salaries and operating expenditures Cash To record salaries and operating expenditures. Investments Interest revenue To record interest revenue from investments Miscellaneous expenditures Cash To record miscellaneous expenditures. Supplies expenditures Waste management supplies To record consumption of supplies inventory. Fund balance -- nonspendable Fund balance -- unassigned To adjust the nonspendable fund balance. O O → O O 47 O 46 O O > > S > S > S S 2,500,000 * 2,500,000 * 0✓ 0 x 0x 0✓ 0 x 0✓ 0x 0✔ 0 x 0✓ 0 x 0x 0✓ 0 x 0✓ 0 2,500,000 x 0 2,500,000 * 0✓ 0 0x 0 ✓ 0x 0✔ 0x 0✓ 0x 0 ✓ 0x 0✔ 0x 0✓ 0x Closing entries: Tax revenues Waste management revenues Court fines Interest revenue Fund balance -- unassigned Estimated revenues To close revenues to fund balance. Appropriations Waste management expenditures Court expenditures Salaries and operating expenditures Miscellaneous expenditures Supplies expenditures Fund balance -- unassigned To close expenditures to fund balance. Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended September 30, 2020 Revenues: Property taxes Waste management Court fines Interest ♦ ✓ ♦ ✔ $ 0x 0 x 0x 0 x 0x 0✓ 0 x 0x 0 x 0x 0x 0 x 0 ✓ 0✔ 0✓ 0✓ 0✔ 0✔ b. Prepare a statement of revenues, expenditures, and changes in fund balances for fiscal 2020, and the balance sheet at September 30, 2020, for Jones Falls' general fund. Use a negative sign with your answer for excess of revenues over (under) expenditures, if "under" applies. Otherwise, do not use negative signs with your answers. Town of Jones Falls General Fund 0✔ 0✔ 0✔ 0✓ 0✔ 0x 0✔ 0x 0x 0x 0x 0x 0 x Waste management Court fines Interest Expenditures: Waste management Court costs Salaries and expenditures Supplies Miscellaneous Total expenditures Excess of revenues over (under) expenditures Fund balance - October 1, 2019 Fund balance -- September 30, 2020 Assets Cash Investments Account receivable waste mgmt. Waste mgmt. supplies $ $ $ 0x 0 x 0x 0 x 0 x 0x 0x 0x 0 x 0x 0x 0x 0 x Town of Jones Falls General Fund Balance Sheet September 30, 2020 Liabilities and fund balance 0 x Fund balance -- nonspendable $ 0 x Fund balance -- unassigned 0 x 0x 0 x $ 0 x 0 x 0 x

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a The fiscal Year 2020 Journal Entries General Fund Journal Description Debit Credit Estimated Revenues 810000000 Fund balance unassigned 150000000 Ap... View the full answer