Question City of Good Citizen has the following transactions during fiscal year 2009

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Question City of Good Citizen has the following transactions during fiscal year 2009.

(a)    The legal budget for the year provided for $5,040,000 of estimated revenues and $4,960,000 appropriations.

 

(b)    Assume there are $ 150,000 of purchase orders outstanding at the end of last year and that these will be honored in the current year. Prepare the entries to re-establish the encumbrance.

 

(c)    Property taxes were levied in the amount of $3,200,000. It is estimated that 2.5 percent of the taxes will never be collected. Note: The $3,200,000 is the final calculation. Do not re-calculate the property taxes.

 

1. Purchase orders were issued for equipment and supplies in the amount of $3,040,000.
2. Supplies, relating to all of the prior year purchase orders ($150,000), were received along with invoices amounting to $144,000.
3. Equipment and supplies related to current year purchase orders ($3,040,000), were received along with invoices amounting to $3,046,000.
4. Accounts payable were paid in the amount of $3,190,000.
5. Salaries were paid in the amount of $1,000,000.  Do not use encumbrance account.
6. Collections of current property taxes amounted to $2,750,000.
7. It was estimated that $190,000 in property taxes would be collected in the first 60 days of 2010 and that $180,000 would be collected in later periods.

 

Required: Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2009. Use modified accrual accounting in Excel Format

 

Parte II:

The City of Stromfield had the following partial list of account balances (trial balance) in its General Fund as of June 30, 2009

 

 

Debit

Credit

Appropriations Control

 

3,000,000

Budgetary Fund Balance

 

250,000

Reserve for Encumbrances

 

102,000

Due to other Funds

 

35,000

Encumbrances Control

102,000

 

Estimated other Financing Uses Control

 

300,000

Estimated Revenues Control

3,550,000

 

Expenditures Control

2,798,000

 

Fund Balance - Unreserved

 

297,000

Other Financing Uses Control-Transfer Out

309,000

 

Revenues Control

 

3,750,000

Taxes Receivable

75,000

 

Vouchers Payable

 

275,000

 

Required:

a)      Prepare the Statement of Revenues, Expenditures and Change in Fund Balances in Excel Format