Professional Documents
Culture Documents
The title of each problem is followed by the estimated time in minutes required for completion and by a
difficulty rating. The time estimates are applicable for students using the partially filled-in working papers.
Operating revenues:
Charges for services $ 324,800
Operating expenses 320,000
Increase in net assets $ 4,800
Net assets, beginning of year 1,273,600
Net assets, end of year $1,278,400
Fund:
2005
July 1 Investments 620,000
Additions—Contributions 620,000
Dec. 14 Cash 42,000
Additions—Investment Earnings 42,000
14 Transfers Out 42,000
Payable to Revenues Private-Purpose Trust
Fund 42,000
Journal entry for Roark City Endowment Revenues Expendable Private-Purpose Trust Fund:
2005
Dec. 14 Receivable from Endowment Principal Private-
Purpose Trust Fund 42,000
Transfers In 42,000
Additions:
Employee contributions $211,600
Employer contributions 318,500
Investment revenues (net) 163,900
Total additions $694,000
Deductions:
Annuity benefits $284,300
Disability benefits 52,800
Refunds of contributions 61,600
Administrative expenses 294,600
Total deductions 693,300
Net increase $ 700
Net assets held in trust for benefits, beginning of year 841,000
Net assets held in trust for benefits, end of year $841,700
Ex. 19–9 Journal entries for Local Town Enterprise Fund:
2005
Nov. 3 Cash 1,000,000
General Obligation Bonds Payable 1,000,000
30 Accounts Receivable 80,000
Charges for Services 80,000
Journal entries for Local Town General Fund:
2005
Nov. 5 Expenditures 25,000
Vouchers Payable 25,000
5 Fund Balance Reserved for Encumbrances 24,700
Encumbrances 24,700
Journal entry for Local Town General Capital Assets Account Group:
2005
Nov. 5 Machinery and Equipment 25,000
Investment in General Capital Assets from
General Fund Revenues 25,000
Journal entry for Local Town Internal Service Fund:
2005
Nov. 7 Inventory of Supplies 50,000
Cash 50,000
CASES
Case 19–1 In view of the contribution of the Ashburn City Special Revenue Fund, it is inappropriate for
the Ashburn City Electric Utility Enterprise Fund to absorb the entire $80,000 interest on the
8% general obligation serial bonds. It is preferable to account for the required Special Revenue
Fund payment of 80% of the $80,000 interest, or $64,000, as a reduction of the Interest
Expense ledger account balance of the Electric Utility Enterprise Fund, rather than as a credit
to the equity-type Contribution from Special Revenue Fund ledger account. Accounting for the
$64,000 as a reduction of interest expense would result in an increase in net assets of $24,000
for the Electric Utility Enterprise Fund instead of a decrease in net assets of $40,000 ($64,000
20 05
July 1 Taxes Receivable—Current 1 6 0 0 0 0 0
Allowance for Uncollectible Current Taxes
($1,600,000 x 0.05) 8 0 0 0 0
Revenues 1 5 2 0 0 0 0
To accrue property taxes billed and to provide for
estimated uncollectible portion.
Sept 1 Expenditures 1 0 0 0 0
Vouchers Payable 1 0 0 0 0
To record expenditure for computer.
20 05
Aug 1 Cash [($1,000,000 x 0.306557) + ($35,000 x 23.11472)] 1 1 1 5 5 7 4
General Obligation Bonds Payable 1 0 0 0 0 0 0
Premium on General Obligation Bonds Payable 1 1 5 5 7 4
To record issuance of 20–year, 7% general obligation
bonds to finance construction of power-generating facility.
20 05
Sept 1 Machinery and Equipment 1 0 0 0 0
Investment in General Capital Assets from
General Fund Revenues 1 0 0 0 0
To record acquisition of computer by General Fund.
20 05
Oct 1 Receivable from General Fund 1 2 0 0
Charges for Services 1 2 0 0
To record billing for supplies sent to General Fund.
30 Minutes, Medium
Net Assets
Net assets:
Invested in Capital, net of related debt $ 5 8 9 0 0 0
Restricted for revenue bonds retirement 7 3 0 0 0
Unrestricted 1 5 4 0 0 0
Total net assets $ 8 1 6 0 0 0
Cash 1 4 4 0 0 0 0
Expenditures 8 6 4 0 (1) 2 8 8 0 (2)
Receivable from Diggs County
Tax Agency Fund 8 7 5 5 2 0 4 2 3 3 6 0 1 4 1 1 2 0
Payable to Diggs County
General Fund ( 8 7 5 5 2 0 )(3)
Payable to Evans City General
Fund ( 4 2 3 3 6 0 )(4)
Payable to Hickman Township
General Fund ( 1 4 1 1 2 0 )(5)
Taxes Receivable—Current ( 8 6 4 0 0 0 )(6) ( 4 3 2 0 0 0 )(7) ( 1 4 4 0 0 0 )(8)
Revenues ( 1 1 5 2 0 )(9)
To record Tax Agency Fund’s
receipt of first-quarter property
taxes, net of administrative fee.
Computation:
(1) ($432,000 x 0.02) = $8,640
(2) ($144,000 x 0.02) = $2,880
(3) ($1,440,000 x 0.60) + ($432,000 x 0.02) + ($144,000 x 0.02) = $875,520
(4) ($1,440,000 x 0.30) x 0.98 = $423,360
(5) ($1,440,000 x 0.10) x 0.98 = $141,120
(6) ($1,440,000 x 0.60) = $864,000
(7) ($1,440,000 x 0.30) = $432,000
(8) ($1,440,000 x 0.10) = $144,000
(9) ($432,000 x 0.02) + ($144,000 x 0.02) = $11,520
EPF Cash 5 5 0 0
Additions—Investment earnings 5 5 0 0
ERF Cash 5 5 0 0
Receivable from Endowment Principal
Private-Purpose Trust Fund 5 5 0 0
ISF Cash 5 5 0 0 0
Other Financing Sources—Transfers In 5 5 0 0 0
SRF Cash 7 5 0 0 0
Special Assessment Receivable—
Current 7 2 0 0 0
Receivable from General Fund 3 0 0 0
(Continued on page 522.)
TPL Expenditures 7 5 0 0 0
Vouchers Payable 7 5 0 0 0
(8) GF Cash 3 9 3 0 0 0
Taxes Receivable—Current 3 8 6 0 0 0
Revenues 7 0 0 0
(9) TH Cash 5 0 0 0 0 0
Other Financing Sources 5 0 0 0 0 0
(10) GF Expenditures 1 6 0 0 0
Vouchers Payable 1 6 0 0 0
GF Vouchers Payable 1 6 0 0 0
Cash 1 6 0 0 0
(7) Cash 3 7 6 0 0 0
Receivable from General fund
($20,000 + $262,000 – $6,000) 2 7 6 0 0 0
Receivable from Enterprise Fund 8 4 0 0 0
Receivable from Special Revenue Fund
($32,000 – $16,000) 1 6 0 0 0
Revenues 8 0 0 0
Allowance for Uncollectible Current Taxes 8 0 0 0
To establish allowance for uncollectible current taxes.
$8,000 allowance divided by $270,000 total tax levy
equals 2.96%, which approximates 3% average loss
on uncollectible taxes in recent years.
Expenditures 4 8 0 0 0
Bonds Payable 4 8 0 0 0
To correct classification of $30,000 principal and
$18,000 interest paid on 12% general obligation serial
bonds issued July 1, 2001.
Encumbrances 4 1 0 0
Fund Balance Reserved for Encumbrances 4 1 0 0
To record encumbrances for purchase orders
outstanding on June 30, 2006.
Taxes Receivable—Delinquent 8 0 0 0
Allowance for Uncollectible Current Taxes 8 0 0 0
Taxes Receivable—Current 8 0 0 0
Allowance for Uncollectible Delinquent Taxes 8 0 0 0
To transfer delinquent taxes and related estimated
uncollectible amounts from the current classification.
Appropriations 3 5 0 0 0 0
Estimated Revenues 2 9 0 0 0 0
Unreserved and Undesignated Fund Balance 6 0 0 0 0
To close budgetary ledger accounts.
Equipment 1 7 0 0 0
Investment in General Capital Assets from
General Fund Revenues 1 7 0 0 0
To record cost of equipment acquired by General
Fund.