Selected Transactions of the City of Miser Station General Fund

question 8

Essay

Selected transactions of the City of Miser Station General Fund for the 20X1 fiscal year are presented on the following page. All amounts are in thousands of dollars.
General instructions:
a. Dates and formal explanations may be omitted, but number your entries appropriately.
b. All interest rates are annual percentage rates (APRs).
c. Record your entries on the lined paper provided with your answer pages. Sufficient space has been provided to allow you to skip lines between entries.
d. When recording Revenues, classify them as Revenues-Property Taxes or Revenues-Other. When recording expenditures, classify them as Expenditures-Operating, Expenditures-Debt Service, or Expenditures-Capital Outlay.
e. Show all work for any amount required in an entry that is not given in the exam (except when recording the amount necessary to balance the journal entry).
Requirements:
1. Prepare the General Fund general ledger journal entries for the transactions. If no entry is required, do not leave it blank. State "No Entry Required" and briefly explain why.
2. For any transaction affecting the General Capital Assets or General Long-Term Liabilities accounts, indicate the amount of effect on each element of the accounting equation for those accounts. If a transaction has no effect on a particular element, use "NE."
Transactions:
1. The City Council approved the following budget for the fiscal year:
Estimated Revenues $20,000
Appropriations 18,900
Of these amounts, $15,000 is for operating expenditures and $12,000 is for property tax revenues.
2. The property tax levy was recorded, $12,000, of which $600 will probably prove uncollectible.
3. Purchase orders were approved and issued for the following:
Non-inventory supplies $150
Police vehicle 20
4. All of the non-inventory supplies on order from entry 3 were received. The actual cost was $155 and payment will be made at a later date.
?
5. Cash receipts were (see entry 2):
$\begin{array}{llr} \text { Property Taxes} &\$10,500\\ \text { License and Permits} &70\\ \text { Fines and Forfeits} &25\\ \text { Investment Earnings } &5\\ \text { Total Receipts } &\$10,600\\\end{array}$

6. Current taxes receivable (entries 2 and 5) and the related allowance (entry 2) were reclassified as delinquent after the due date.
7. A loan of $50 was made from the General Fund to the City Gasoline Tax Fund (CGTF), which is accounted for as a Special Revenue Fund. The loan will be repaid in five years.
8. The $10 of remaining assets (cash) from a terminated Capital Projects Fund (CPF) were received.
9. A pickup truck purchased seven years ago for $30 with General Fund money was sold for $5. The City's proprietary funds usually depreciate this type of asset over a 10-year period using straight-line depreciation with zero (0) salvage value and disposes of assets at the end of its useful life.
10. Paid $25 to City employees.
11. Sold land for $300, which had been used many years ago as a public park. The land had been purchased for $140.
12. General Fund resources of $250 were paid to a newly established Capital Projects Fund. The resources will not be repaid to the General Fund.
13. The City paid $140 from its General Fund to the fund that services the City's long-term debt.
14. The police vehicle (entry 3) was received and $19 in cash was paid to the vendor.
15. Paid $500 to the Debt Service Fund to provide for upcoming principal and interest payments.
16. Paid $5,000 to the City Airport Enterprise Fund to provide financing for a major expansion project; $2,000 is not required to be repaid, but $3,000 is to be repaid at the end of five years.
17. Loaned $320 to the Capital Projects Fund-to be repaid in 90 days.
18. Paid $12 to the Special Revenue Fund to repay it for General Fund employee salaries that were inadvertently recorded as expenditures of that fund.
19. Received a bill from the Utility Enterprise Fund for electricity usage charged to General Fund departments and agencies, $300. This bill will be paid at a later date.
20. Instructed the Library Special Revenue Fund to pay its portion of the utility bill (entry 19), $25; the cash was not immediately received.
21. The Library Special Revenue Fund paid the amount owed (entry 20).
22. Taxes receivable of $100 were determined to be uncollectible and were written off.

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