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

'Chapter 4: Problems 4â€4, 4â€6, 4â€10, and 4â€11 3â€9. presenting oecumenic gillyflower Operating Budget and Operating Transactions. The townspeopleship of Bedford F each(prenominal)s authorise a global inscription direct figure for the pecuniary division refinement June 30, 2011. The budget provides for estimated revenues of $2,700,000 as follows: spot measure revenue incomees, $1,900,000; licenses and permits, $350,000; fines and forfeits, $250,000; and intergovernmental ( affirm gifts), $200,000. The budget approved appropriations of $2,650,000 as follows: habitual Government, $500,000; semipublic Safety, $1,600,000; existence works, $350,000; pose and Recreation, $150,000; and Miscellaneous, $50,000. Summary\r\n commonplace origin direct budget: fiscal stratum terminate June 30, 2011 Budget: revenues of $2,700,000 property evaluatees: $1,900,000 licenses and permits: $350,000 fines and forfeits: $250,000 intergovernmental (state parcel o uts):$200,000 The budget approved appropriations of $2,650,000 as follows: oecumenic Government:$500,000 earthly concern Safety: $1,600,000 humans Works: $350,000 park and Recreation: $150,000 Miscellaneous:$50,000 take : a. hold the ledger entry (or entries), including adjunct book of account entries, to go in the townsfolk of Bedford F solelys’s habitual stemma operating budget on July 1, 2010, the beginning of the Town’s 2011 fiscal year.\r\nAnswer: General LedgerSubsidiary al-Quran Estimated RevDR: $2,700,000 budgetary p bentage Bal. CR: $2,700,000 TaxesDR: $1,900,000 Intergovernmental Rev. DR: $200,000 Licenses & international ampere; PermitsDR: $350,000 b. Prepare journal entries to express the adjacent proceedings that occurred during the month of July 2010. 1. Revenues were collected in cash joining to $31,000 for licenses and permits and $12,000 for fines and forfeits.\r\nAnswer: licenses and permits (Subsidiary Ledger) DR: Licenses & Per mits $31,000 CR: specie $31,000 fines and forfeits (general ledger) DR: Estimated Rev $12,000 CR: Budgetary ancestry bal. $12,000 2.\r\nSupplies were ordered by the pastime functions in early July 2010 at the estimated be shown:\r\nAnswer: Appropriations LedgerSubsidiary ledger General GovernmentCR: $7,400 domain SafetyCR: $11,300 unrestricted WorksCR: $6, ascorbic acid park & RecreationCR: $4,200 Misc. CR: $900 Encumbrances subsidiary LedgerSubsidiary ledger General GovernmentDR: $7,400 Public SafetyDR: $11,300 Public WorksDR: $6, nose candy greens & RecreationDR: $4,200 Misc. DR: $900 3. During July 2010, supplies were standard at the actual costs shown down the stairs and were give in cash. General Government, viriditys and Recreation, and Miscellaneous trustworthy all supplies ordered.\r\nPublic Safety and Public Works accepted part of the supplies ordered earlier in the month at estimated costs of $10,700 and $5,900, respectively. c. train and show in good dramatis personae the fall of budgeted but unrealized revenues in match and from each source as of July 31, 2010.\r\nAnswer: Budgeted but unrealized revenues: General Govn †$100 Public Safety †($100) Public Works †($200) parking area & Rec †$100 Misc. †$0 d. Calculate and show in good form the come in of operable appropriation in total and for each function as of July 31, 2010.\r\nAnswer: useable appropriation: General Govn. †$100 Public Safety †$0\r\nPublic Works †$0 common & Rec †$100 Misc. †$0 4â€4 prop Tax Calculations and Journal Entries. The small town of Darby’s budget calls for property tax revenues for the fiscal year ending declination 31, 2011, of $2,660,000. Village records indicate that, on average, 2 part of taxes levied are non collected. The county tax tax assessor has assessed the cheer of taxable property situated in the village at $135,714,300. demand: a. Calculate to the nearest p enny what tax rate per $100 of assessed valuation is inevitable to generate a tax bill that will produce the required amount of revenue for the year.\r\nAnswer: 2,700,000%. 096= $2,812,500 b. Record the tax impose for 2011 in the General Fund. ( dismiss subsidiary decimal point and entries at the government-wide level. )\r\nAnswer: DR: General Revenue-Property Taxes CR: Property Taxes c. By celestial latitude 31, 2011, $2,540,000 of the current property tax bill had been collected. Record the amounts collected and reclassify the garner amount as delinquent. Interest and penalties of 6 per centum were immediately due on the delinquent taxes, but the finance manager estimates that 10 percent will non be collectible.\r\nRecord the take and penalties receivable. (Round all amounts to the nearest dollar. ) 4â€6 particular(prenominal) Revenue Fund, Voluntary Nonexchange Transactions. The metropolis of Eldon utilise 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 have gotd in two installments on July 1, 2011, and July 1, 2012. The grant stipulates that $100,000 is for use in each of the metropolis’s fiscal years ending June 30, 2012, and June 30, 2013.\r\nAny amounts not expended during FY 2012 can be carried over for use in FY 2013. During FY 2012, the urban center expended $90,000 for park improvements from grant resources. Required For the extra revenue fund, provide the appropriate journal entries, if any, that would be made for the succeeding(a): 1. May 1, 2011, notification of grant approval.\r\nAnswer: No Entry 2. July 1, 2011, receipt of first installment of the grant.\r\nAnswer: CR: Grant $1,000,000 DR: money $1,000,000 3. During FY 2011 to record expenditures under the grant.\r\nAnswer: No Entry 4. July 1, 2012. CR: Grant- park improvements, $90,000 DR: Cash- grant resources, $90,000 4â€10 Operating Transactions, extra Topics, and Financial Statements. The City of Ashland’s General Fund had the following post-closing trial correspondence 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 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 outlook note. The loan was obtained from a local stick at a discount of 6 percent per annum (debit Expenditures for discount). 3. The property tax levy for FY 2011 was preserve. 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 we re issued to vendors and others in the amount of $2,059,000. 5.\r\nThe County poster of Review discovered unassessed properties with a total taxable foster of $500,000. The owners of these properties were charged with taxes at the city’s General Fund rate of $5 per $100 assessed value. (You ingest not adjust the Estimated Uncollectible modern Taxes account. ) 6. $1,961,000 of current taxes, $383,270 of delinquent taxes, and $20,570 of interest and penalties were collected. 7. supererogatory interest and penalties on delinquent taxes were accrue in the amount of $38,430, of which 30 percent was estimated to be uncollectible. 8.\r\nBecause 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 stat e taxes; the rest period was gainful to employees in cash. 10. The employer’s 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 for\r\nFICA 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 due 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. tout ensemble unpaid current year’s property taxes became delinquent. The balances of the current tax receivables and related to uncollectibles were transferred to delinquent accounts. 7. A physical inventory of materials and supplies at April 30, 2011, showed a total of $19,100. muniment is recorded using the purchases manner in the General Fund; the consumption method is utilise 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.\r\nAnswer: 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 tag end as of April 30, 2011.\r\nAnswer: General Fund Cash $3,140,000 Borrowing/Lending 300,000 Total Liabilities Vouchers collectible 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.\r\nDo not prepare the gove rnment-wide financial statements. 4â€11 Permanent Fund and Related extra Revenue Fund Transactions. Annabelle Benton, great-granddaughter of the founder of the Town of Benton, made a cash character in the amount of $500,000 to be held as an endowment. To account for this endowment, the town has created the Alex Benton putting surface gift Fund. Under terms of the agreement, the town mustiness invest and conserve the principal amount of the persona in perpetuity. Earnings, measured on the accrual basis, must be used to maintain Alex Benton Park in an â€Å" captivating 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 Maintenance Fund, a special revenue fund. Information pertaining to transactions of the endowment and special revenue finances for the fiscal year ended June 30, 2011, follows:1. The contribution of $500,000 was real and r ecorded on December 31, 2010.2. On December 31, 2010, bonds having a represent value of $400,000 were purchased for $406,300, plus three months of accrue interest of $6,000. A certificate of set 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 surround 31, June 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 accepted 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 Maintenan ce 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, sustentation 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 sell for $102,000 plus accrued interest of $1,500. On the same date, 2,000 shares of ABC Corporation’s 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 governme ntal 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 1â€8. 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 ended June 30, 2011.\r\n'