Professional Documents
Culture Documents
Continuing Problem 1
ACCT 2050: Governmental Accounting
GENERAL JOURNAL
Da
te
Account Names
Debit
400,0
00
70,00
0
10,00
0
300,0
00
40,00
0
80,00
0
45,00
0
15,00
0
Appropriations-police salaries
Appropriations-police supplies
Appropriations-parks salaries
Appropriations-transfer to Debt Service Fund
Budgetary fund balance
To record the budget for 2013 in the general
ledger.
2 Encumbrances-police supplies
Budgetary fund balance reserved for
encumbrances
To record encumbrances for purchase orders.
Budgetary fund balance reserved for
3a encumbrances
Encumbrances-police supplies
Credi
t
39,00
0
39,00
0
35,00
0
35,00
0
3b Expenditures-police supplies
33,00
0
Vouchers payable
To record purchase of police cars.
33,00
0
4 Vouchers payable
33,00
0
Cash
To record payment of vouchers for police cars.
c) Post the
Budgetary
fund balance
reserved for
Vouchers encumbrance
payable
s
33,000
35,00 39,00
33,000 0
0
Encumbrancespolice supplies
39,000
35,000
4,000
0
4,000
Expenditurespolice supplies
33,000
Cash
33,0
00
33,000
33,0
00
d) Prepare an appropriations ledger for police supplies and post the budgetary
transactions.
Coco City
General Fund
Appropriations Ledger
For the Year 2013
Object Code: Police Supplies
Appropriat
ions
Da
te
1
2
3
4
Item
Budget
Order Materials
Receive
Materials
Record
expenditure
Cr
40,000
Encumbra
nces
Dr
Cr
Expendit
ures
Available
Appropria
tion
Dr
Cr
40,000
1,000
39,000
35,000
36,000
33,000
3,000
GENERAL JOURNAL
Da
te
Account Names
Debit
404,0
00
4,000
400,0
00
Revenues-property taxes
To record 2013 property tax levy.
2 Allowance for refunds and uncollectible taxes
Property taxes receivable
To write off property taxes as uncollectible.
3 Cash
Credi
t
3,000
3,000
370,0
00
370,0
00
31,00
0
31,00
0
4b Revenues-property taxes
10,00
0
10,00
0
5a Cash
1,000
1,000
68,00
0
68,00
0
Revenues-sales taxes
To record sales tax collections.
5b Sales taxes receivable
Revenues-sales taxes
To record sales taxes not received until Jan. 20,
2014.
6 Cash
6,000
6,000
18,00
0
18,00
0
7 Vouchers payable
Cash
35,00
0
35,00
0
To record payment of unpaid vouchers.
290,0
00
70,00
0
8 Expenditures-police salaries
Expenditures-parks salaries
360,0
00
Cash
To record payment of salaries.
9 Expenditures-police salaries
Expenditures-parks salaries
8,000
5,000
Property taxes
receivabledelinquent
31,000
6,000
3,000
1,000
31,000
Revenues-sales
taxes
6,000
refunds and
uncollectible
accounts
4,000
13,00
0
68,000
6,000
Revenues-parks
admission fees
18,000
74,000
Vouchers payable
35,000
35,000
18,000
Expenditurespolice salaries
290,000
8,000
Expenditures-parks
salaries
70,000
5,000
Accrued salaries
and other payables
13,000
298,000
75,000
Transfer out to Debt
Cash
Service Fund
13,000
370,0 35,000
45,000
00
68,00 360,000
0
18,000
45,000
Part D (Chapter 6-Capital Projects Fund
and Debt Service Fund transactions)
16,00
Prepare journal entries for all funds, as appropriate,
0 45,000
to record these transactions and post the journal
entries to T-accounts for each fund.
GENERAL JOURNAL
Da
te
Account Names
1 In the Capital Projects Fund:
Debit
Credit
Cash
500,00
0
500,00
0
500,00
0
500,00
0
Cash
To record purchase of police station.
3a In the Debt Service Fund:
Cash
Transfer in from General Fund
To record transfer in from General Fund.
3b In the General Fund:
Transfer out to Debt Service Fund
Cash
To record transfer out to Debt Service Fund.
4 In the Debt Service Fund:
Expenditures-bond principal
Expenditures-bond interest
Matured principal payable
Matured interest payable
To record matured debt service.
5 In the Debt Service Fund:
Matured principal payable
Matured interest payable
Cash
To record the payment of debt service.
Cash
500,0
500,0
00
00
45,00
40,00
45,000
45,000
45,000
45,000
25,000
15,000
25,000
15,000
25,000
15,000
40,000
5,000
0
Other
financing
sourceproceeds of
bonds
500,000
Transfer in from
General Fund
45,000
500,000
Expenditurescapital outlay
500,000
45,000
Expenditures-bond
principal
25,000
500,000
Expenditures-bond
interest
15,000
25,000
15,000
GENERAL JOURNAL
Da
te
Account Names
1 No journal entry is required.
Debi
t
70,0
00
2 Cash
70,0
00
3 Salaries expense
8,00
0
Cash
To record payment of salaries to lifeguard and clerk.
24,0
00
40,0
00
4 Interest expense
Bonds payable
64,0
00
Cash
To record payment of debt service on swimming
pool.
30,000
Cred
it
24,000
30,0
00
30,0
00
Coco City
General Fund
Preclosing Trial Balance
December 31, 2013
Account Name
Debit
Budgetary Accounts
$
Estimated revenues-property taxes
400,000
Estimated revenues-sales taxes
70,000
Estimated revenues-parks admission fees
10,000
Appropriations-police salaries
Appropriations-police supplies
Appropriations-parks salaries
Appropriations-transfer to Debt Service
Fund
Budgetary fund balance
Financial Accounts
Encumbrances-police supplies
Budgetary fund balance reserved for
encumbrances
Cash
Sales taxes receivable
Property taxes receivable-delinquent
Accrued salaries and other payables
Deferred property tax revenues
Unassigned fund balance
Revenues-property taxes
Revenues-sales taxes
Revenues-parks admissions fees
Expenditures-police supplies
Expenditures-police salaries
Expenditures-parks salaries
Transfer out to Debt Service Fund
Credit
$
300,000
40,000
80,000
45,000
15,000
4,000
4,000
23,000
6,000
31,000
13,000
10,000
5,000
391,000
74,000
18,000
33,000
298,000
75,000
45,000
$
995,000
$
995,000
Coco City
Capital Projects Fund
Preclosing Trial Balance
December 31, 2013
Account Name
Debit
Other financing source-proceeds of
bonds
$
Expenditures-capital outlay
500,000
$
500,000
Cash
Coco City
Debt Service Fund
Preclosing Trial Balance
December 31, 2013
Account Name
Debit
$
5,000
Credit
$
500,000
$
500,000
Credit
$
45,000
25,000
15,000
$
45,000
Coco City
Enterprise Fund
Preclosing Trial Balance
December 31, 2013
Account Name
Debit
$
Cash
3,000
Swimming pool
510,000
Accumulated depreciationswimming pool
$
45,000
Credit
$
30,000
Bonds payable
Net position
Revenues-swimming pool
admissions fees
Salaries expense
Interest expense
Depreciation expense-swimming
pool
440,000
35,000
70,000
8,000
24,000
30,000
$
575,000
$
575,000
Coco City
Balance Sheet
Governmental Funds
December 31, 2013
General
Fund
Capital
Project
s Fund
Debt
Service
Fund
Assets
Cash
Sales taxes receivable
Property taxes receivabledelinquent
Total assets
Liabilities
Accrued salaries and other
payables
Deferred Inflows of Resources
Deferred property tax revenues
Fund Balances
Assigned
Unassigned
Total fund balances
Total liabilities, deferred
inflows of
Resources and fund
$
23,000
6,000
31,000
$
60,000
$
5,000
$
5,000
$
13,000
10,000
5,000
37,000
37,000
$
60,000
5,000
$
5,000
balances
Coco City
Governmental Funds
Statements of Revenues, Expenditures, and Changes in
Fund Balances
For the Year Ended December 31, 2013
General
Fund
Capital
Projects
Fund
Debt
Service
Fund
Revenues
Property taxes
Sales taxes
Parks admission fees
Total revenues
Expenditures
Current:
Police supplies
Police salaries
Parks salaries
Debt service:
Principal
Interest
$
391,000
74,000
18,000
483,000
33,000
298,000
75,000
$
25,000
15,000
Capital outlay
Total expenditures
Excess (deficiency) of
revenues over
expenditures
Other Financing Sources
(Uses)
Proceeds of bonds
Transfers in
Transfers out
Total other financing sources
(uses)
Net change in fund balances
Fund balances-beginning
Fund balances-ending
406,000
$
500,000
500,000
40,000
(500,000)
(40,000)
77,000
500,000
45,000
(45,000)
(45,000) 500,000
32,000
0
5,000
0
$
$
37,000
-
45,000
5,000
0
$
5,000
Coco City
General Fund
Budgetary Comparison Schedule
Year Ended December 31, 2013
Original
and Final
Budgets
Actual
Varianc
e
$
400,000
70,000
10,000
480,000
$
391,000
74,000
18,000
483,000
$
(9,000)
4,000
8,000
3,000
40,000
300,000
33,000
298,000
7,000
2,000
Revenues
Property taxes
Sales taxes
Parks admission fees
Total revenues
Expenditures
Police supplies
Police salaries
Parks salaries
Transfer to Debt Service Fund
Total expenditures
Excess of revenues over
expenditures
Fund balance, beginning of
year
Fund balance, end of year
80,000
45,000
465,000
75,000
45,000
451,000
5,000
0
14,000
15,000
32,000
17,000
5,000
5,000
$
20,000
$
37,000
$
17,000
Coco City
Enterprise Fund
Statement of Net Position
December 31, 2013
Assets
Current assets:
Cash
Capital assets:
Swimming pool, (net of accumulated
depreciation
of $120,000)
Total assets
Liabilities
$3,000
480,000
$483,000
Current liabilities:
Current portion of bonds payable
Noncurrent liabilities:
Bonds payable
Total liabilities
Net Position
Net investment in capital assets
Unrestricted
Total net position
40,000
400,000
440,000
40,000
3,000
$
43,000
Coco City
Enterprise Fund
Statement of Revenues, Expenses, and Changes in Fund Net
Position
For the Year Ended December 31, 2013
Operating Revenues
$
Swimming pool admission fees
70,000
Operating Expenses
$
Salaries expense
8,000
30,
Depreciation expense
000
38,000
32,000
(24,000
)
8,
000
35,
000
$
43,000
GENERAL JOURNAL
Da
te
Account Names
1 Transaction 4 Part C
Deferred property tax revenues
Debit
10,00
Credi
t
0
10,00
0
500,0
00
500,0
00
Bonds payable
To reverse financing source and record liability
3 Transaction 2 Part D
Capital assets
500,0
00
500,0
00
Expenditures-capital outlay
To reverse expenditures and record capital assets
4 Transaction 4 Part D
Bonds payable
25,00
0
25,00
0
Expenditures-bond principal
To reduce expenditures.
5 Transaction 1 Part D
Depreciation expense
10,00
0
10,00
0
Accumulated depreciation
To record depreciation for 2013.
6 Transaction 2 Part D
Interest expense
Accrued interest payable
To record interest liability on an accrual basis.
7,125
7,125
7 Transaction 3 Part D
Transfer in from General Fund
Transfer out to Debt Service Fund
45,00
0
45,00
0
To eliminate transfers among governmental funds.
2. Post the journal entries to a six-column work sheet.
Debit
Cash
Sales taxes receivable
Property taxes receivabledelinquent
Accrued salaries and other
payables
Deferred property tax
revenues
Unassigned fund balance
Revenues:
Property taxes
Sales taxes
Parks admission fees
Expenditures:
Police supplies
Police salaries
Parks salaries
Bond principal
Bond interest
Capital outlay
Other financing items:
Proceeds of bonds
Transfers in
Transfers out
Capital assets
Accumulated depreciation
Accrued interest payable
Bonds payable
Depreciation expense
Credit
Adjustments
Debit Credit
Adjusted Balances
Debit
Credit
28,000
6,000
28,000
6,000
31,000
31,000
13,000
10,000
5,000
13,000
10,000
5,000
391,000
74,000
18,000
33,000
298,000
75,000
25,000
15,000
500,000
401,000
74,000
18,000
33,000
298,000
75,000
25,000
7,125
22,125
500,000
500,000
45,000
45,000
$
1,056,000
10,000
500,000
45,000
45,000
$
1,056,000
500,000
25,000
10,000
500,000
10,000
7,125
500,000
10,000
7,125
475,000
10,000
$
$
$
1,003,12
1,097,12 1,097,12
5
5
5
$
1,003,12
5
Coco City
Statement of Net Position
December 31, 2013
Assets
Cash
Sales taxes receivable
Property taxes receivable-delinquent
Capital assets, net of $10,000 accumulated
depreciation
Total assets
Liabilities
Accrued salaries and other payables
Accrued interest payable
Bonds payable
Due within 1 year
Due in more than 1 year
Total liabilities
Net Position
Invested in capital assets, net of related debt
Unrestricted
Net position
$
28,000
6,0
00
31,0
00
490,0
00
555,0
00
13,0
00
7,1
25
50,000
425,000
495,125
15,000
40,875
$
55,875
Coco City
Statement of Activities
For the Year Ended December 31, 2013
Charge
s for
Net
Expen Service (Expense)
ses
s
Revenue
Programs
$
$
Police supplies
43,000
(43,000)
298,00
(298,00
Police salaries
0
0)
$
Parks salaries
75,000 18,000
(57,000)
Interest on long-term
debt
22,125
(22,125)
Total governmental
$438,1
$
(420,12
activities
25
18,000
5)
General revenues
Property taxes
401,000
Sales taxes
74,000
Total general revenues
475,000
Change in net position
54,875
Net position, beginning
1,000
$
Net position, ending
55,875