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Chapter 17 - Governmental Entities: Introduction and General Fund Accounting
17-21
E17-8 (continued)
(8) The revenue from liquor licenses is the amount collected, not the amount expected
(9) The $15,000 reimbursement is not reported as revenue in the general fund.
(10) The collection of the delinquent property taxes is not reported as revenue by the
E17-9 Computation of Expenditures Reported on the Statement of Revenues,
Expenditures, and Changes in Fund Balance for the General Fund
Benson City
Amount Reported for Expenditures by the General Fund
For the Year Ended June 30, 20X8
Computer equipment acquisitions in September, 20X7
$ 202,000
Reimbursement to special revenue fund in May, 20X8
15,000
Use of city water during the fiscal year
12,000
Supplies acquisitions
35,000
Salaries and wages of general fund employees
900,000
Interest paid on loan from local bank
15,000
Employer’s pension contribution to pension trust
95,000
Lease payments
10,000
Total amount reported for expenditures
$1,284,000
Notes:
(1) The $150,000 transfer to the capital projects fund in March, 20X8, is reported as an
(2) The amount paid for the computer equipment is the amount reported for
(3) None of the $500,000 transferred to the internal service fund should be reported as
expenditures. The $200,000 that must be repaid by the internal service fund should be
(4) The $15,000 reimbursement to the special revenue fund should be included in the
Chapter 17 - Governmental Entities: Introduction and General Fund Accounting
17-22
E17-9 (continued)
(5) The $12,000 of billings from the water department should be accounted for as
(6) The acquisition of supplies and the payment of salaries and wages by the general
(7) The outstanding encumbrances at June 30, 20X8, are not included in expenditures.
(8) The repayment of the principal of the bank loan is not an expenditure. However, the
(9) The general fund’s $95,000 contribution to the city’s pension trust should be
(10) The general fund’s lease payments should be included in the amount reported for
(11) For proper reporting on the statement of revenues, expenditures and changes in
Chapter 17 - Governmental Entities: Introduction and General Fund Accounting
E17-10 Closing Entries and Balance Sheet
a.
Closing entries for the general fund:
(1)
APPROPRIATIONS CONTROL
1,145,000
ESTIMATED OTHER FINANCING
USES– TRANSFER OUT
25,000
BUDGETARY FUND BALANCE – UNASSIGNED
30,000
ESTIMATED REVENUES CONTROL
1,200,000
Close budgetary accounts.
(2)
BUDGETARY FUND BALANCE – ASSIGNED FOR
ENCUMBRANCES
32,000
ENCUMBRANCES
32,000
Close remaining encumbrances by reversing remaining budgetary balance.
(3)
Fund Balance – Unassigned
32,000
Fund Balance – Assigned for Encumbrances
32,000
Reserve fund balance for encumbrances that lapse, but are expected to
be honored in 20X2.
(4)
Property Tax Revenue
1,130,000
Miscellaneous Revenue
40,000
Expenditures
1,140,000
Fund Balance – Unassigned
30,000
Close operating statement accounts.
(5)
Fund Balance – Unassigned
25,000
Other Financing Uses – Transfer Out
25,000
Close transfer out.
b.
General fund balance sheet:
Lone Wolf
General Fund
Balance Sheet
December 31, 20X1
Assets
Cash
$ 90,000
Property Taxes Receivable – Delinquent
$100,000
Less: Allowance for Uncollectibles –
Delinquent
(7,200)
92,800
Due from Other Funds
14,600
Total Assets
$ 197,400
Liabilities and Fund Balance
Vouchers Payable
$ 65,000
Due to Other Funds
8,400
Fund Balance:
Spendable:
Assigned to:
General Government Services
$ 32,000
Unassigned
92,000
124,000
Total Liabilities and Fund Balance
$ 197,400
Chapter 17 - Governmental Entities: Introduction and General Fund Accounting
17-24
E17-11 Statement of Revenues, Expenditures, and Changes in Fund Balance
Lone Wolf
General Fund
Statement of Revenues, Expenditures, and Changes
in Fund Balance
For the Fiscal Year Ended December 31, 20X1
Revenue:
Property Taxes
$1,130,000
Miscellaneous
40,000
$1,170,000
Expenditures
1,140,000
Excess of Revenue over Expenditures
$
30,000
Other Financing Sources (Uses):
Transfer Out
(25,000)
Net Change in Fund Balance
$ 5,000
Fund Balance, January 1, 20X1
119,000
Fund Balance, December 31, 20X1
$ 124,000
E17-12 Matching Questions Involving Interfund Transactions and Transfers in
1. B
2. C
3. C
4. C
5. C
6. B
7. A
8. D
9. A
10. B
Chapter 17 - Governmental Entities: Introduction and General Fund Accounting
17-25
P17-13 General Fund Entries [AICPA Adapted]
(1)
ESTIMATED REVENUES CONTROL
2,000,000
APPROPRIATIONS CONTROL
1,940,000
BUDGETARY FUND BALANCE – UNASSIGNED
60,000
Record the budget.
(2)
Taxes Receivable
1,870,000
Allowance for Uncollectible Taxes
10,000
Property Tax Revenue
1,860,000
Record the property tax levy.
(3)
Allowance for Uncollectible Taxes
8,000
Taxes Receivable
8,000
Write off uncollectible taxes receivable.
(4)
Cash
1,820,000
Taxes Receivable
1,820,000
Record property tax collections.
(5)
ENCUMBRANCES
1,070,000
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
1,070,000
Record purchase commitments.
(6)
BUDGETARY FUND BALANCE – ASSIGNED FOR
ENCUMBRANCES
1,000,000
ENCUMBRANCES
1,000,000
Reverse for purchase orders received.
(7)
Expenditures
1,840,000
Vouchers Payable
1,840,000
Record actual expenditures.
(8)
Vouchers Payable
1,852,000
Cash
1,852,000
Record payment of vouchers during period.
(9)
APPROPRIATIONS CONTROL
1,940,000
BUDGETARY FUND BALANCE – UNASSIGNED
60,000
ESTIMATED REVENUES CONTROL
2,000,000
Close budgetary accounts.
(10)
BUDGETARY FUND BALANCE – ASSIGNED FOR
ENCUMBRANCES
70,000
ENCUMBRANCES
70,000
Close remaining encumbrances by reversing remaining budgetary balance.
(11)
Fund Balance – Unassigned
70,000
Fund Balance – Assigned for
Encumbrances
70,000
Reserve fund balance for outstanding purchase commitments.
Chapter 17 - Governmental Entities: Introduction and General Fund Accounting
17-26
(12)
Property Tax Revenue
1,860,000
Expenditures
1,840,000
Fund Balance – Unassigned
20,000
Close operating statement accounts.
1.
ESTIMATED REVENUES CONTROL
3,000,000
APPROPRIATIONS CONTROL
2,980,000
BUDGETARY FUND BALANCE – UNASSIGNED
20,000
Record the budget.
Taxes Receivable
2,870,000
Allowance for Uncollectible Taxes
70,000
Revenue from Taxes
2,800,000
Record tax levy.
Cash
2,810,000
Taxes Receivable
2,810,000
Record tax collection.
Allowance for Uncollectible Taxes
40,000
Taxes Receivable
40,000
Record write-off of uncollectible taxes:
July 1, 20X1, taxes receivable balance
$ 150,000
20X2 tax levy
2,870,000
Less: Taxes collected
(2,810,000)
Taxes receivable final balance
(170,000)
Taxes written off as uncollectible
$ 40,000
Cash
130,000
Miscellaneous Revenue
130,000
Collect miscellaneous revenue.
2.
Fund Balance – Assigned for Encumbrances
60,000
Fund Balance – Unassigned
60,000
Reverse prior reserve which has been renewed.
ENCUMBRANCES
60,000
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
60,000
Renew encumbrances from prior period.
ENCUMBRANCES
2,700,000
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
2,700,000
Record encumbrances.
Chapter 17 - Governmental Entities: Introduction and General Fund Accounting
17-27
P17-14 (continued)
3.
Expenditures
142,000
Due to Other Funds
142,000
Record liability to other funds for services received.
4.
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
2,700,000
ENCUMBRANCES
2,700,000
Reverse encumbrances for items received.
Expenditures
2,700,000
Vouchers Payable
2,700,000
Record expenditures.
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
60,000
ENCUMBRANCES
60,000
Reverse reserve for encumbrances.
Expenditures (Prior Period)
58,000
Vouchers Payable
58,000
Actual expenditure for goods received.
Due to Other Funds
210,000
Vouchers Payable
210,000
Record approval for payment to other funds.
Vouchers Payable
2,640,000
Cash
2,640,000
Record voucher payments.
5.
ENCUMBRANCES
91,000
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
91,000
Record May 10 encumbrance.
Chapter 17 - Governmental Entities: Introduction and General Fund Accounting
17-28
a.
Entries for 20X2 budget and transactions:
1.
ESTIMATED REVENUES CONTROL
1,877,000
APPROPRIATIONS CONTROL
1,840,000
ESTIMATED OTHER FINANCIAL
USES – TRANSFER OUT
37,000
Record budget.
ENCUMBRANCES
21,000
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
21,000
Renew encumbrances from prior period.
Fund Balance – Assigned for Encumbrances
21,000
Fund Balance – Unassigned
21,000
Reverse reserve for renewed encumbrances.
Property Tax Receivable – Current
1,600,000
Allowance for Uncollectibles – Current
16,000
Property Tax Revenue
1,584,000
Record property tax levy.
2.
Cash
1,590,000
Property Taxes Receivable – Current
1,507,000
Property Taxes Receivable – Delinquent
83,000
Collect property taxes.
Allowance for Uncollectibles – Delinquent
9,000
Property Taxes Receivable – Delinquent
7,000
Property Tax Revenue
2,000
Write off remaining delinquent property taxes.
Property Taxes Receivable – Delinquent
93,000
Allowance for Uncollectibles – Current
16,000
Property Taxes Receivable – Current
93,000
Allowance for Uncollectibles – Delinquent
16,000
Reclassify remainder of uncollected 20X2 property taxes.
Cash
333,000
Sales Tax Revenue
284,000
Miscellaneous Revenue
39,000
Due to Motor Pool Fund
10,000
Other cash receipts.
