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

Chapter 4 Problems 44, 46, 410, and 411 39. move intoing widely distributed monetary broth run reckon and operating(a) Transactions. The townsfolk of Bedford Falls approved a general farm animal operating reckon for the monetary socio-economic class remnant June 30, 2011. The budget provides for estimated tax revenues of $2,700,000 as follows property valuatees, $1,900,000 licenses and permits, $350,000 fines and forfeits, $250,000 and intergovernmental ( stir grants), $200,000. The budget approved appropriations of $2,650,000 as follows General Government, $500,000 normal Safety, $1,600,000 Public works, $350,000 greennesss and Recreation, $150,000 and Miscellaneous, $50,000. SummaryGeneral Fund operating budget fiscal course of instruction ending June 30, 2011 Budget revenues of $2,700,000 property taxes $1,900,000 licenses and permits $350,000 fines and forfeits $250,000 intergovernmental (state grants)$200,000 The budget approved appropriations of $2,650,000 as f ollows General Government$500,000 Public Safety $1,600,000 Public industrial plant $350,000 Parks and Recreation $150,000 Miscellaneous$50,000 Required a. Prep ar the daybook entry (or entries), including subsidiary book of account entries, to demonstrate the Town of Bedford Fallss General Fund operating budget on July 1, 2010, the beginning of the Towns 2011 fiscal mould. help General LedgerSubsidiary account book Estimated RevDR $2,700,000 Budgetary fund Bal. CR $2,700,000 TaxesDR $1,900,000 Intergovernmental Rev. DR $200,000 Licenses & PermitsDR $350,000 b. Prepare ledger entries to come in the following transactions that occurred during the month of July 2010. 1. Revenues were collected in cash get alonging 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 immediate payment $31,000 fines and forfeits (general ledger) DR Estimated Rev $12,000 CR Budgetary fund bal. $1 2,000 2.Supplies were ordered by the following functions in early July 2010 at the estimated costs carrynAnswer Appropriations LedgerSubsidiary ledger General GovernmentCR $7,400 Public SafetyCR $11,300 Public whole shebangCR $6,100 Parks & 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 received at the actual 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. Calculate and show in good seduce the amount of budgeted but unrealized revenues in total and from each seed as of July 31, 2010.Answer Budgeted but unrealized revenues General Govn $100 Public Safety ($100) Publ ic Works ($200) Park & Rec $100 Misc. $0 d. Calculate and show in good form the amount of obtainable appropriation in total 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 tax revenues for the fiscal stratum ending December 31, 2011, of $2,660,000. Village records indicate that, on average, 2 portion of taxes levied are not collected. The county tax assessor has assessed the value of taxable 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 required to give in a tax levy that provide produce the required 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-wide 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 juvenile delinquent. Interest 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 rice beer and penalties receivable. (Round all amounts to the nearest dollar. ) 46 Special 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 whitethorn 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 utilization in each of the metropoliss fiscal years ending June 30, 2012, and June 30, 2013.Any amounts not exp terminate during FY 2012 freighter 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 make 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 Grant $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 Financial Statements. The City of Ashlands General Fund had the following post-closing trial ratio 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 201 1 provided for General Fund estimated revenues totaling $3,140,000 and appropriations totaling $3,100,000. . The city council authorized temporary borrowing of $300,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a can 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. Purchase 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 adjust the Estimated bad Current Taxes account. ) 6. $1,961,000 of current taxes, $383,270 of delinquent taxes, and $20,570 of absorb and penalties were collected. 7. Additional stakes 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 balance 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 filled at a net cost of $ 1,987,570, which was vouchered. 14. Vouchers collectible totaling $2,301,660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures). 15. The tax anticipation note of $300,000 was repaid. 16. whole costless current years property taxes became delinquent. The balances of the current tax receivables and related uncollectibles were transferred to delinquent accounts. 7. A physiological 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 levyt ax levyCash b. Record in general journal form entries to close the budgetary and operating teaching 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 tilt 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 section 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 Endowment Fund. Under terms of the agreement, the town must invest and conserve the principal amount of the contribution in perpetuity. Earnings, measured on the accrual basis, must be used to maintai n Alex Benton Park in an attractive manner. All 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 forethought 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 face value of $400,000 were purchased for $406,300, plus three months of accrued interest of $6,000. A certificate of deposit with a face and fair value of $70,000 was also purchased on this date. 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, June 30, September 30, and December 31.3. On Ja nuary 2, 2011, the town council approved a budget for the Alex Benton Park aliment 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 immaterial in amount.8. On June 30, 2011, bonds with face value of $100,000 were s old for $102,000 plus accrued interest of $1,500. On the same date, 2,000 shares of ABC breadbaskets stock were purchased at $52 per share. Required a. Prepare in general journal form the entries required in the Alex Benton Park Endowment 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 twain 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 ended June 30, 2011.