Chapter 04 – Accounting for Governmental Operating Activities
4-16
Ch. 4, Solutions, (Cont’d)
4-21. CITY OF WATERVILLE
GENERAL JOURNAL
(1) May 1, 2017
NO ENTRY REQUIRED – Eligibility requirements must be met before an
asset and revenue can be recognized.
(2) May 5, 2017
Debits Credits
(3) During FY 2017
Debits Credits
EXPENDITURES 165,000
(While the city can record this entry, the final determination that eligibility
requirements have been met is determined by the state.)
(4) December 13, 2017
(5) December 31, 2017
(Note that no additional entries need to be made, since eligibility
requirements have not been met as of year end for the remaining $35,000 of
grant funds awarded.)
Chapter 04 – Accounting for Governmental Operating Activities
4-17
Ch. 4, Solutions, 4-21 (Cont’d)
General Problem Information: Special revenue fund and voluntary nonexchange transactions
Learning Objective: 4-1
Learning Objective: 4-3
Learning Objective: 4-6
Topic: Special Revenue Funds
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application
Level of Difficulty: Medium
Chapter 04 – Accounting for Governmental Operating Activities
4-18
Ch. 4, Solutions (Cont’d)
4-22.a. CITY OF EVERGREEN⎯JOURNAL ENTRIES
GENERAL LEDGER SUBSIDIARY LEDGER
Debits Credits Debits Credits
General Fund:
(1) ESTIMATED REVENUES 2,774,000
Estimated Revenues Ledger:
TAXES 1,943,000
Appropriations Ledger:
General Fund:
(2) ENCUMBRANCES⎯2017 931,000
ENCUMBRANCES
OUTSTANDING⎯2017 931,000
Encumbrances Ledger—2017:
Chapter 04 – Accounting for Governmental Operating Activities
4-19
Ch. 4, Solutions 4-22a (Cont’d)
GENERAL LEDGER SUBSIDIARY LEDGER
Debits Credits Debits Credits
General Fund:
(3) TAXES RECEIVABLE⎯
Revenues Ledger:
PROPERTY TAXES 1,940,000
Governmental Activities:
TAXES RECEIVABLE⎯
General Fund and Governmental Activities:
(4) CASH 1,591,000
TAXES RECEIVABLE⎯
General Fund:
Chapter 04 – Accounting for Governmental Operating Activities
4-20
Ch. 4, Solutions, 4-22, a (5) (Cont’d)
GENERAL LEDGER SUBSIDIARY LEDGER
Debits Credits Debits Credits
Expenditures Ledger—2017:
GENERAL GOVERNMENT 411,000
PUBLIC SAFETY 635,000
Governmental Activities:
EXPENSES—GENERAL
*Miscellaneous items are included in General Government
General Fund:
(6) ENCUMBRANCES
OUTSTANDING—2016 14,000
ENCUMBRANCES—2016 14,000
Encumbrances Ledger
⎯
2016:
PUBLIC SAFETY 14,000
Expenditures Ledger
⎯
2017:
Expenditures Ledger
⎯
2016:
Chapter 04 – Accounting for Governmental Operating Activities
4-21
Ch. 4, Solutions, 4-22, a (6) (Cont’d)
GENERAL LEDGER SUBSIDIARY LEDGER
Debits Credits Debits Credits
Governmental Activities:
General Fund:
(7) ENCUMBRANCES—
Encumbrances Ledger—2017:
GENERAL GOVERNMENT 52,200
EXPENDITURES⎯2017 850,500
VOUCHERS PAYABLE 850,500
Expenditures Ledger—2017:
GENERAL GOVERNMENT 52,700
Chapter 04 – Accounting for Governmental Operating Activities
4-22
Ch. 4, Solutions, 4-22, a (7) (Cont’d)
GENERAL LEDGER SUBSIDIARY LEDGER
Debits Credits Debits Credits
Governmental Activities:
EXPENSES—GENERAL
GOVERNMENT 123,700
General Fund:
(8) CASH 839,000
REVENUES 839,000
Revenues Ledger:
Governmental Activities:
CASH 839,000
PROGRAM REVENUES—
GENERAL GOVERNMENT—
Chapter 04 – Accounting for Governmental Operating Activities
4-23
Ch. 4, Solutions, 4-22, a. (Cont’d)
GENERAL LEDGER SUBSIDIARY LEDGER
Debits Credits Debits Credits
General Fund and Governmental Activities:
Note: The Governmental Activities ledger is not shown here.
CITY OF EVERGREEN
GENERAL FUND
REVENUE LEDGER (NOT REQUIRED)
ESTIMATED
REVENUES
REVENUES
BALANCE
Debit (Credit)
(1)
1,943,000
1,940,000
(3)
1,943,000
3,000
(1)
372,000
372,000
(8)
373,000
(1,000)
(1)
397,000
397,000
(8)
400,000
(3,000)
(1)
62,000
62,000
(8)
66,000
(4,000)
Chapter 04 – Accounting for Governmental Operating Activities
4-24
Ch. 4, Solutions, 4-22, a. (Cont’d)
GENERAL FUND
APPROPRIATIONS/ENCUMBRANCES/EXPENDITURES LEDGER
(NOT REQUIRED)
AVAILABLE
TRANSACTION APPROPRIATION ENCUMBRANCE EXPENDITURE BALANCE
GENERAL GOVERNMENT_______________________
1 471,000 471,000
2 58,000 413,000
5 411,000 2,000
7 (52,200) 52,700 1,500
PUBLIC SAFETY_________________________
1 886,000 886,000
Chapter 04 – Accounting for Governmental Operating Activities
4-25
Ch. 4, Solutions, 4-22 (Cont’d)
b. CITY OF EVERGREEN
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED DECEMBER 31, 2017
VARIANCE
BUDGET WITH FINAL
(ORIGINAL BUDGET
AND OVER
FINAL) ACTUALA (UNDER)
REVENUES:
TAXES $1,943,000 $1,940,000 $ (3,000)
LICENSES AND PERMITS 372,000 373,000 1,000
EXPENDITURES (BUDGET BASIS):
GENERAL GOVERNMENT 471,000 469,500 (1,500)
PUBLIC SAFETY 886,000 880,770 (5,230)
EXCESS OF REVENUES OVER
EXPENDITURES 81,000 98,130 17,130
Chapter 04 – Accounting for Governmental Operating Activities
Ch. 4, Solutions, 4-22, b. (Cont’d)
NOTES:
A The actual expenditures in this statement include encumbrances of 2017
appropriations outstanding at year-end, but do not include the expenditures of
the 2016 appropriations recorded in Entry 6.
General Problem Information: Transactions and budgetary comparison schedule
Learning Objective: 4-1
Learning Objective: 4-3
Topic: Illustrative Journal Entries
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN Reporting
Level of Difficulty: Hard
4-23. a. CITY OF BIG SPRINGS
Debits Credits
1. General Fund:
EXPENDITURES 100,000
CASH 100,000
Chapter 04 – Accounting for Governmental Operating Activities
Ch. 4, Solutions, 4-23 (Cont’d)
Debits Credits
2. General Fund:
INTERFUND LOANS RECEIVABLE—
NONCURRENT 50,000
CASH 50,000
3. General Fund:
OTHER FINANCING USES—INTERFUND
TRANSFERS OUT 100,000
4. General Fund:
CASH 5,000
OTHER FINANCING SOURCES—
Chapter 04 – Accounting for Governmental Operating Activities
4-28
Ch. 4, Solutions, 4-23 (Cont’d)
Debits Credits
5. General Fund:
INTERFUND LOANS RECEIVABLE—
CURRENT 50,000
CASH 50,000
Governmental Activities:
NO EFFECT
b. Proprietary funds, such as the enterprise fund, measure total economic
resources using the accrual basis of accounting. Since this is the same
General Problem Information: Interfund and interactivity transactions
Learning Objective: 4-4
Topic: Transactions with Proprietary Funds, Interfund Activity
Bloom’s Taxonomy: Apply
Accreditation Skills tag: Knowledge Application, AICPA: FN Reporting
Level of Difficulty: Medium