QuestionChapter 4 Recording operating Transactions affect the GeneralFund and Governmental activities at the Government-wideLevelPresented listed below are a variety of transactions for the City that Smithville that occurredduring the budget year because that which the budget given in chapter 3 was recorded, the calendaryear 2014. Review all instructions carefully.a. After opened the data record containing your data indigenous Chapters 2 and also 3 that this project,record the following transactions in the basic journal for the General fund and, ifapplicable, in the basic journal for governmental activities at the government-widelevel. For every entries, the day selected need to be year 2014. For each of theparagraphs that calls for entries in both the general Fund and also governmental activitiesjournals, you have the right to either document them in both newspaper on a paragraph-by-paragraphbasis or, alternatively, document all the General fund journal entries very first for allparagraphs, then complete the governmental activities journal entries because that allparagraphs next. If you pick the last method, it could be valuable to print theGeneral money general newspaper entries from the Reports menu to assist in do theentries in the governmental tasks journal. Regardless of the technique you choose,we recommend the you refer to the illustrative journal entries in thing 4 that theReck, Lowensohn, and also Wilson textbook (16h edition) for guidance in do allentries.For every entry affecting budgetary account or operating statement accounts, theDetail journal will instantly open, as was the instance in chapter 3, to record theappropriate quantities in the information budgetary or actual accounts.Please psychic that prior to closing the City the Smithville, friend mustclick top top , and also to conserve your work. Your occupational isNOT automatically saved.1. ~ above January 2, 2014, real building taxes to be levied because that the year inthe lot of $1,697,000. That was approximated that 3 percent that the levy would beuncollectible.Required: record this transaction in both the basic Fund and governmentalactivities journal. (Note: kind 4-a-1 together the paragraph number in the crate for this entry; 4-a-2 for the following transaction, etc. Carefulreferencing by i number is very helpful have to you have to determinewhere you may have actually omitted a required journal entry or do an error.) (Select“Accrued Revenue” in the drop down food selection in theDetail Journal regarded the General money entry.)2. Encumbrances were tape-recorded in the following amounts for purchaseorders issued versus the appropriations indicated:22General GovernmentPublic SafetyPublic WorksHealth and also WelfareCulture and RecreationMiscellaneousTotal$ 98,453185,259247,675173,469108,92741,563$855,346Required: record the encumbrances in the General money general journal andDetail newspaper as appropriate. In the information Journal, choose “Purchase Orders”from the drop under menu. You can also form in analternative description, if desired.3. Cash was received during the year in the total amount the $5,821,280for collections from the complying with receivables and cash revenues, as indicated:Current property TaxesDelinquent building TaxesInterest and also Penalties union on TaxesDue from State GovernmentRevenues: (total: $3,380,210)Sales TaxesLicenses and also PermitsFines and ForfeitsIntergovernmentalCharges because that ServicesMiscellaneousTotal$1,546,800360,00034,270500,0001,886,860583,800423,360168,000225,07093,120$5,821,280Required: document the receipt of cash and also the associated credits come receivables andrevenues accounts, as applicable, in both the basic Fund and also governmentalactivities journals. (Select “Received in Cash” in the drop down menu in the detail Journal concerned the General fund revenueentries.)For functions of the governmental activities entries at the government-wide levelassume the adhering to classifications:General FundSales TaxesLicenses and also PermitsFines and ForfeitsGovernmental ActivitiesGeneral Revenues—Taxes—SalesProgram Revenues—General Government—Charges because that ServicesProgram Revenues—General Government—Charges because that Services23IntergovernmentalCharges because that ServicesMiscellaneousProgram Revenues—Public Safety—OperatingGrants and also ContributionsProgram Revenues—General Government—Charges for Services, $140,100Program Revenues—Culture and also Recreation—Charges because that Services, $84,970General Revenues—Miscellaneous4. added interest and also penalties were accrued ~ above delinquentproperty count in the lot of $2,836, of which 10 percent was approximated to beuncollectible. (Note: ring the approximated uncollectible come the nearest wholedollar.)Required: document this accrual in both the basic Fund and also governmentalactivities general journals.5. General money payrolls because that the year totaled $3,822,600. Of thatamount, $472,040 to be withheld because that employees" federal earnings taxes; $291,740for employees’ share of FICA taxes; $171,610 for employees’ state income taxes;and the continuing to be $2,887,210 was paid to employee in cash. The City ofSmithville does not document encumbrances for payrolls. The payrolls werechargeable versus the adhering to functions’ appropriations:General GovernmentPublic SafetyPublic WorksHealth and WelfareCulture and RecreationTotal$ 476,3762,013,110612,881397,673322,560$3,822,600Required: Make summary journal entries for payroll in both the general Fundand governmental tasks general journals because that the year.6. The city’s share of FICA taxes, $291,740, and the city"scontribution the $195,380 come retirement accumulation administered by the stategovernment were taped as liabilities.Required: record this transaction in both the basic Fund and governmentalactivities general journals. Assume the the full $487,120 have to be allocated inthe very same proportions together in i 4-a-5 above; that is:General Government: ($476,376/$3,822,600) x $487,120 = $60,705Public Safety: ($2,013,110/$3,822,600) x $487,120 = $256,534Public Works: ($612,881/$3,822,600) x $487,120 = $78,101Health and Welfare: ($397,673/$3,822,600) x $487,120 = $50,676Culture and also Recreation: ($322,560/$3,822,600) x $487,120 = $41,10424(Note: The allocated amount because that Public works was rounded increase one dissension tocompensate for rounding error.)7. Invoices for few of the products recorded together encumbrances intransaction 4-a-2 to be received and vouchered for later on payment, as noted below.Related encumbrances were canceled in the quantities shown (Select “Elimination”in the drop down menu in the detail Journal):General GovernmentPublic SafetyPublic WorksHealth and also WelfareCulture and RecreationMiscellaneousExpenditures$ 93,838173,669190,596176,400109,28041,160$784,943Encumbrances$ 94,752173,356190,512173,124108,92741,563$782,234Required: record the receipt of this goods and also the associated vouchers payable inboth the general Fund and also governmental tasks journals. In ~ the governmentwide level, you should assume the city offers the regular inventory method. Thus,the invoiced amounts above should be tape-recorded as costs of the appropriatefunctions, except that $27,800 of the amount charged to the public Worksfunction to be for a vehicle (debit tools for this item in ~ the government-widelevel). Expenditures charged to the assorted appropriation need to berecorded in this instance as general Government costs at the government-widelevel.8. throughout FY 2014, the City the Smithville received an alert thatthe state federal government would assigned work $165,000 come it early on in the next fiscal year,although this lot is intended come finance certain public security operations of gift year. This amount had actually been anticipated and was included in the budgetfor the existing year as "Intergovernmental Revenue.”Required: record this transaction together a receivable and also revenue in the GeneralFund and governmental activities journals. (Note: choose “Accrued Revenue” inthe box in the information Journal). In ~ the governmentwide level, assume the this item is one operating give to the public Safetyfunction.9. check were written in the total amount the $2,809,090 throughout 2014.These checks were in payment of the adhering to items:Vouchers PayableTax Anticipation notes PayableExpenditures (Interest on taxanticipation notes)$ 995,600375,000 (see thing 2)8,40025Due to federal GovernmentDue to State GovernmentTotal quantity paid1,068,400361,690$2,809,090(Note: attention expenditures on tax anticipation notes to be budgeted in theMiscellaneous category. Record them together a basic Government expense at thegovernment-wide level.)Required: record the payment of this items in both the General money andgovernmental tasks general journals.10. present taxes union uncollected at year-end, and the relatedEstimated Uncollectible present Taxes account, were both reclassified asdelinquent.Required: document these reclassifications in the basic Fund and governmentalactivities journals.11. The city’s budget for 2014 was legally amended as follows:Estimated Revenues:Licenses and also permitsIntergovernmentalCharges for ServicesMiscellaneousTotalAppropriations:General GovernmentPublic SafetyPublic WorksHealth and also WelfareCulture and RecreationDecreases$ 5,000Increases$ 5,0005,000$10,00010,000$15,000$22,0003,50015,0005,500$8,000$8,000$46,000Note: these amendments decrease the balance that the Budgetary fund Balanceaccount by $33,000.Required: document the spending plan amendments in the General fund general journalonly. Budgetary items do not impact the government-wide bookkeeping records.(Note: select “Budget Amendment” in the box in theDetail Journal.)12. Interest and penalties unification on delinquent taxes was increasedby $11,000; $3,500 of this was approximated as uncollectible.26Required: document this transaction in the general Fund and also governmentalactivities journals.13. Services received by the general Government function of theGeneral money from the Solid rubbish Disposal money amounted to $16,500 duringthe year. The this amount, $10,100 was paid in cash and also $6,400 continued to be unpaid atyear-end.Required: document the receipt of these services, quantities paid during the year,and remaining liability in the basic Fund and governmental tasks journals.At the government-wide level the liability need to be attributed to interior Payablesto Business-type Activities. Perform not document these items in the solid WasteDisposal fund until instructed to execute so in thing 7 the this case.14. Delinquent counting receivable in the quantity of $17,150 to be writtenoff as uncollectible. Interest and penalties already recorded together receivable on thesetaxes, amounting come $8,820, were additionally written off. Added interest ~ above thesetaxes that had actually legally accrued was not recorded since it was deemed uncollectiblein its entirety.Required: document this transaction in the general Fund and governmentalactivities journals.15. the was found that goods in the lot of $12,000 had beenrecorded in error as an expenditure against the basic Government appropriationof the basic Fund. These products should have been charged to the solid WasteDisposal Fund, an enterprise fund and a business-type activity at the governmentwide level. This item had also been charged together an price of the GeneralGovernment role at the government-wide level. One interfund invoice wasprepared to minimize expenditures the the General money for the $12,000 andrecognize one interfund receivable. This item will certainly be known later in chapter 7of this situation as an expense of the heavy Waste handle Fund.Required: record this reimbursement transaction in the General fund andgovernmental tasks journals, debiting early from other Funds in the GeneralFund and Internal Receivables from Business-type tasks at the governmentwide level. Perform not make any entries in the Solid garbage Disposal fund at thistime. (Note: choose “Goods Received” in the crate inthe information Journal).16. <4-a-16> In December 2014, the General fund made a temporary loan the $20,000to the Street improvement Bond Debt business Fund to assist with payment of aninterest payment due on January 1, 2015.27Required: record this transaction in the General fund only. The transaction hasno impact at the government-wide level due to the fact that it occurs between two governmentalactivities.17. <4-a-17> Adjusting Entry. A physical counting of consumable offers at year-endshowed an ending balance of $66,000, boost of $6,000 throughout the year. Thecity supplies the purchases technique of accountancy for its inventory in the GeneralFund and also the consumption an approach at the government-wide level. Since the cityuses a routine inventory system, both at the fund and also governmental levels, itrecords all purchases of inventory together expenditures in the basic Fund and also asexpenses in ~ the government-wide level. These were included as part of theamounts videotaped in i 4-a-7. Adjustments come the costs accountsshould be made to the public Works function, where many supplies are used.Required: Prepare the adjusting journal entries in the General fund journal toadjust the perform of Supplies and also Fund Balance—Nonspendable—Inventory ofSupplies accounts to the exactly balances and the governmental tasks journalto adjust the Expenses—Public Works and Inventory of supplies accounts.Post all newspaper entries to the general and also subsidiary ledgers: after ~ reviewingall entries because that accuracy, including year and paragraph numbers, write-up all entries tothe general ledger accounts and to every subsidiary ledger accounts, by clicking on. Additionally post every entries in the governmental tasks journal.18. Closeup of the door Entry. Complying with the indict in the following paragraph, prepare and postthe crucial entries to close the estimated Revenues and also Appropriationsaccounts to Budgetary money Balance, and also Revenues and also Expenditures come FundBalance—Unassigned. Since the City that Smithville honors all outstandingencumbrances in ~ year-end, it is not vital to near Encumbrances toEncumbrances exceptional at year-end because encumbrances execute not affect theGeneral fund balance paper or declare of revenues, expenditures, and changesin fund balances. If, however, you would like to avoid having actually these accountsappear in the post-closing attempt balance, you have the right to opt to close Encumbrances toEncumbrances Outstanding. If the accounts are closed, lock would must bereestablished in ~ the start of the following year, although entries are not forced inthis difficulty for the following year.To nearby the temporary accounts, you must click on the examine mark because that , “Closing Entry” will appear in the box. Besure the inspect mark in package for is showing prior to closingeach separation, personal, instance account. Also, you will be sent to the detail Journal whereby youmust close each individual budgetary or operating statement account. Todetermine the closing amounts for both general Ledger and subsidiary ledgeraccounts, friend should first print the pre-closing variation of this ledgers for year2014 from the menu.28At year-end, an evaluation by the city’s finance department figured out thefollowing border on resources in the general Fund. Prepare the appropriatejournal entry in the General money to reclassify quantities between money Balance—Unassigned and also the fund balance accounts equivalent to the constraints shownbelow. (Note: friend should think about the start of year balances in fundbalance accounts in calculating the quantities to be reclassified.)AccountFund Balance—Restricted—Public SafetyFund Balance—Committed—Public WorksFund Balance—Assigned—Culture and also RecreationAmount$15,00029,70056,800Note: carry out NOT PREPARE closeup of the door ENTRIES because that GOVERNMENTALACTIVITIES at this time since governmental tasks will not be closeduntil thing 9, after the funding projects money (Chapter 5) and debt company fund(Chapter 6) transactions influence governmental activities at the government-widelevel have been recorded.b. Select “Export” from the drop down menu to produce an Excel worksheet that theGeneral fund post-closing attempt balance together of December 31, 2014. Usage Excel toprepare in good form a balance sheet because that the General money as that December 31, 2014.Follow the format displayed in Illustration 4-3 the Reck, Lowensohn, and Wilson,Accounting because that Governmental and also Nonprofit Entities, 16th version textbook (hereafterreferred to together “the textbook”). Alternatively, you can click on to print thepost-closing trial balance and also use the published copy come manually prepare a balancesheet.c. Select “Export” indigenous the drop under food selection to develop an Excel worksheet of theGeneral money pre-closing subsidiary ledger account balances for the year 2014. UseExcel to prepare in good form a statement of revenues, expenditures, and also changes infund balance because that the General money for the year ended December 31, 2014. (SeeIllustration 4-4 in the textbook for an example format.)d. Usage the Excel worksheet of the General money pre-closing subsidiary ledger accountbalances produced in part c over to prepare in good type a schedule that revenues,expenditures, and also changes in fund balance—budget and actual for the general Fundfor the year ended December 31, 2014. (See Illustration 4-5 in the textbook for anexample format.)e. Prepare a reconciliation of complete expenditures reported in your systems to component c the thisproblem through the full expenditures and also encumbrances report in your systems to29part d the this problem.
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(In chapter 4 listed below Illustration 4-5, see conversation andexample i beg your pardon compares Illustrations 4-4 and also 4-5.)Before closing the City that Smithville, click on , and also to save your work. Your work-related is NOT immediately saved.