Acct 562 Assignment 2 – The town of bedford falls approved a general fund

Chapter 4 Problems 44, 46, 410, and 411 39. come ining public investment company Operating reckon and Operating Transactions. The townsfolk of Bedford go authorise a habitual Fund operating budget for the pecuniary year ending June 30, 2011. The budget provides for estimated receiptss of $2,700,000 as follows property evaluatees, $1,900,000 licenses and permits, $350,000 fines and forfeits, $250,000 and intergovernmental (state dole outs), $200,000. The budget approved appropriations of $2,650,000 as follows popular Government, $500,000 earthly concern Safety, $1,600,000 universe Works, $350,000 super acids and Recreation, $150,000 and discordant, $50,000. Summary full general Fund operating budget financial year ending June 30, 2011 Budget revenues of $2,700,000 property valuatees $1,900,000 licenses and permits $350,000 fines and forfeits $250,000 intergovernmental (state lots)$200,000 The budget approved appropriations of $2,650,000 as follows cosmopolitan Gove rnment$500,000 Public Safety $1,600,000 Public Works $350,000 greenss and Recreation $150,000 Miscellaneous$50,000 require a. evolve the daybook entry (or entries), including subsidiary account book entries, to picture the Town of Bedford Fallss oecumenic Fund operating budget on July 1, 2010, the beginning of the Towns 2011 financial year. coiffure General LedgerSubsidiary book of account Estimated RevDR $2,700,000 Budgetary bloodline Bal. CR $2,700,000 appraiseesDR $1,900,000 Intergovernmental Rev. DR $200,000 Licenses & PermitsDR $350,000 b. Prepare journal entries to record the by-line minutes that occurred during the month of July 2010. 1. Revenues were collected in cash doing to $31,000 for licenses and permits and $12,000 for fines and forfeits.Answer licenses and permits (Subsidiary Ledger) DR Licenses & Permits $31,000 CR Cash $31,000 fines and forfeits (general leger) DR Estimated Rev $12,000 CR Budgetary gun clove pink bal. $12,000 2.Supplies were ordered by the sideline functions in early July 2010 at the estimated be shownAnswer Appropriations LedgerSubsidiary ledger General GovernmentCR $7,400 Public SafetyCR $11,300 Public WorksCR $6,100 commons & RecreationCR $4,200 Misc. CR $900 Encumbrances subsidiary LedgerSubsidiary ledger General GovernmentDR $7,400 Public SafetyDR $11,300 Public WorksDR $6,100 Parks & RecreationDR $4,200 Misc. DR $900 3. During July 2010, supplies were authoritative at the unquestionable costs shown below and were paying in cash. General Government, Parks and Recreation, and Miscellaneous received all supplies ordered.Public Safety and Public Works received part of the supplies ordered earlier in the month at estimated costs of $10,700 and $5,900, respectively. c. address and show in good turn the amount of budgeted entirely unrealized revenues in numerate and from each source as of July 31, 2010.Answer Budgeted save unrealized revenues General Govn $100 Public Safety ($100) Public Works ($200 ) Park & Rec $100 Misc. $0 d. Calculate and show in good form the amount of available appropriation in come up and for each function as of July 31, 2010.Answer Available appropriation General Govn. $100 Public Safety $0Public Works $0 Park & Rec $100 Misc. $0 44 Property Tax Calculations and Journal Entries. The Village of Darbys budget calls for property valuate revenues for the fiscal year ending celestial latitude 31, 2011, of $2,660,000. Village records indicate that, on average, 2 percent of appraisees levied are not collected. The county task assessor has assessed the value of rateable property located in the village at $135,714,300. Required a. Calculate to the nearest penny what tax rate per $100 of assessed valuation is requisite to generate a tax impose that exit produce the needed amount of revenue for the year.Answer 2,700,000%. 096= $2,812,500 b. Record the tax levy for 2011 in the General Fund. (Ignore subsidiary detail and entries at the government-wi de level. )Answer DR General Revenue-Property Taxes CR Property Taxes c. By December 31, 2011, $2,540,000 of the current property tax levy had been collected. Record the amounts collected and reclassify the uncollected amount as delinquent. vex group and penalties of 6 percent were immediately due on the delinquent taxes, but the finance director estimates that 10 percent will not be collectible.Record the interest and penalties receivable. (Round all amounts to the nearest dollar. ) 46 exceptional Revenue Fund, Voluntary Nonexchange Transactions. The City of Eldon applied for a competitive grant from the state government for park improvements such as upgrading hiking trails and bike paths. On May 1, 2011, the City was notified that it had been awarded a grant of $200,000 for the program, to be received in two installments on July 1, 2011, and July 1, 2012. The grant stipulates that $100,000 is for use in each of the citys fiscal years ending June 30, 2012, and June 30, 2013.Any amounts not expended during FY 2012 notify be carried over for use in FY 2013. During FY 2012, the city expended $90,000 for park improvements from grant resources. Required For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following 1. May 1, 2011, notification of grant approval.Answer No Entry 2. July 1, 2011, receipt of first installment of the grant.Answer CR sacrifice $1,000,000 DR Cash $1,000,000 3. During FY 2011 to record expenditures under the grant.Answer No Entry 4. July 1, 2012. CR Grant- park improvements, $90,000 DR Cash- grant resources, $90,000 410 Operating Transactions, Special Topics, and monetary Statements. The City of Ashlands General Fund had the following post- ending trial proportionateness at April 30, 2010, the end of its fiscal year ? During the year ended April 30, 2011, the following transactions, in summary form, with subsidiary ledger detail omitted, occurred 1. The budget for FY 2011 provid ed for General Fund estimated revenues totaling $3,140,000 and appropriations totaling $3,100,000. . The city council authorized temporary espousal of $300,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local shore at a discount of 6 percent per annum (debit Expenditures for discount). 3. The property tax levy for FY 2011 was recorded. Net assessed valuation of taxable property for the year was $43,000,000, and the tax rate was $5 per $100. It was estimated that 4 percent of the levy would be uncollectible. 4. acquire orders and contracts were issued to vendors and others in the amount of $2,059,000. 5.The County Board of Review discovered unassessed properties with a total taxable value of $500,000. The owners of these properties were charged with taxes at the citys General Fund rate of $5 per $100 assessed value. (You need not alter the Estimated Uncollectible Current Taxes account. ) 6. $1,961,000 of current taxes, $383,270 of delinquent taxes , and $20,570 of interest and penalties were collected. 7. Additional interest and penalties on delinquent taxes were accrued in the amount of $38,430, of which 30 percent was estimated to be uncollectible. 8.Because of a change in state law, the city was notified that it will receive $80,000 less in intergovernmental revenues than was budgeted. 9. Total payroll during the year was $819,490. Of that amount, $62,690 was withheld for employees FICA tax liability, $103,710 for employees federal income tax liability, and $34,400 for state taxes the brace was paid to employees in cash. 10. The employers FICA tax liability was recorded for $62,690. 11. Revenues from sources other than taxes were collected in the amount of $946,700. 12. Amounts due the federal government as of April 30, 2011, and amounts due forFICA taxes, and state and federal withholding taxes during the year were vouchered. 13. Purchase orders and contracts encumbered in the amount of $1,988,040 were alter at a net c ost of $1,987,570, which was vouchered. 14. Vouchers payable totaling $2,301,660 were paid by and by deducting a credit for purchases discount of $8,030 (credit Expenditures). 15. The tax anticipation note of $300,000 was repaid. 16. on the whole unpaid current years property taxes became delinquent. The balances of the current tax receivables and related uncollectibles were transferred to delinquent accounts. 7. A physical inventory of materials and supplies at April 30, 2011, showed a total of $19,100. Inventory is recorded using the purchases method in the General Fund the consumption method is used at the government-wide level. Required a. Record in general journal form the effect of the above transactions on the General Fund and governmental activities for the year ended April 30, 2011. Do not record subsidiary ledger debits and credits.Answer General FundDebitCredit revenues $3,140,000 appropriations $3,100,000 borrowing of $300,000 principle and interest$300,000 roperty tax levytax levyCash b. Record in general journal form entries to close the budgetary and operating statement accounts. c. Prepare a General Fund balance sheet as of April 30, 2011.Answer General Fund Cash $3,140,000 Borrowing/Lending 300,000 Total Liabilities Vouchers payable totaling $2,301,660 materials and supplies $19,100 tax liability $62,690 d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended April 30, 2011.Do not prepare the government-wide financial statements. 411 Permanent Fund and Related Special Revenue Fund Transactions. Annabelle Benton, great-granddaughter of the founder of the Town of Benton, made a cash contribution in the amount of $500,000 to be held as an endowment. To account for this endowment, the town has created the Alex Benton Park giving Fund. Under terms of the agreement, the town moldiness invest and conserve the star topology amount of the contribution in perpetuity. cyberspace, measured on the accrual basis , must be used to maintain Alex Benton Park in an attractive manner. either changes in fair value are treated as adjustments of fund balance of the permanent fund and do not affect earnings. Earnings are transferred periodically to the Alex Benton Park Maintenance Fund, a special revenue fund. Information pertaining to transactions of the endowment and special revenue funds for the fiscal year ended June 30, 2011, follows1. The contribution of $500,000 was received and recorded on December 31, 2010.2. On December 31, 2010, bonds having a grammatical case value of $400,000 were purchased for $406,300, plus trine months of accrued interest of $6,000. A certificate of sediment with a face and fair value of $70,000 was also purchased on this fancy. The bonds mature on October 1, 2019 (105 months from date of purchase), and pay interest of 6 percent per annum semiannually on April 1 and October 1. The certificate of deposit pays interest of 4 percent per annum payable on March 31, J une 30, September 30, and December 31.3. On January 2, 2011, the town council approved a budget for the Alex Benton Park Maintenance Fund, which included estimated revenues of $13,400 and appropriations of $13,000.4.On March 31, 2011, interest on the certificate of deposit was received by the endowment fund and transferred to the Alex Benton Park Maintenance Fund.5. The April 1, 2011, bond interest was received by the endowment fund and transferred to the Alex Benton Park Maintenance Fund.6. On June 30, 2011, interest on the certificate of deposit was received and transferred to the Alex Benton Park Maintenance Fund.7. For the year ended June 30, 2011, maintenance expenditures from the Alex Benton Park Maintenance Fund amounted to $2,700 for materials and contractual services and $10,150 for wages and salaries. All expenditures were paid in cash except for $430 of vouchers payable as of June 30, 2011. Inventories of materials and supplies are deemed foreign in amount.8. On June 30, 2011, bonds with face value of $100,000 were sold for $102,000 plus accrued interest of $1,500. On the same date, 2,000 shares of ABC Corporations stock were purchased at $52 per share. Required a. Prepare in general journal form the entries required in the Alex Benton Park giving Fund to record the transactions occurring during the fiscal year ending June 30, 2011, including all appropriate adjusting and closing entries. Note Ignore related entries in the governmental activities journal at the government-wide level. ) b. Prepare in general journal form the entries required in the Alex Benton Park Maintenance Fund to record Transactions 18. c. Prepare the following financial statements (1) A balance sheet for both the Alex Benton Park Endowment Fund and the Alex Benton Park Maintenance Fund as of June 30, 2011. (2) A statement of revenues, expenditures, and changes in fund balance for both the Alex Benton Park Endowment Fund and the Alex Benton Park Maintenance Fund for the year e nded June 30, 2011.