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Problem 15-4, Concluded
(e) Encumbrances .......................................................................... 276,000
Fund Balance—Assigned .................................................. 276,000
To record encumbrances.
Supplies Inventory .................................................................... 16,000
Expenditures ............................................................................. 244,000
Vouchers Payable ............................................................. 260,000
To record vouchers.
Fund Balance—Assigned ......................................................... 254,000
Encumbrances .................................................................. 254,000
To record encumbrance entry.
Fund Balance—Unassigned ..................................................... 6,000
Fund Balance—Nonspendable ......................................... 6,000
To establish desired fund balance designation.
(2) Appropriations .................................................................................. 362,000
Budgetary Fund Balance—Unassigned ........................................... 38,000
(3) Statement of Revenues, Expenditures, and Changes in Fund Balance:
Revenues ..................................................................................................... $284,400
15–17 Ch. 15—Problems
PROBLEM 15-5
(a) Estimated Revenues .................................................................. 400,000
Estimated Other Financing Sources .......................................... 200,000
Appropriations ...................................................................... 560,000
Estimated Other Financing Uses ......................................... 20,000
Budgetary Fund Balance—Unassigned ............................... 20,000
Encumbrances ........................................................................... 12,000
(e) Cash ........................................................................................... 664,000
Allowance for Uncollectible Delinquent Taxes ........................... 8,000
Taxes Receivable—Delinquent ............................................ 46,000
Taxes Receivable—Current ................................................. 226,000
Expenditures ........................................................................ 4,000
Vouchers Payable ................................................................ 244,000
Due to Debt Service Fund .................................................... 20,000
(h) Revenues ................................................................................... 2,000
Deferred Revenues .............................................................. 2,000
Allowance for Uncollectible Current Taxes ................................ 5,200
Problem 15-5, Concluded
(i) Vouchers Payable ...................................................................... 580,000
PROBLEM 15-6
(1) (a) Estimated Revenues ........................................................... 900,000
Estimated Other Financing Sources ................................... 27,000
Appropriations ............................................................. 875,000
Estimated Other Financing Uses ................................. 20,000
Budgetary Fund Balance—Unassigned ...................... 32,000
To record the approved budget.
(b) Encumbrances .................................................................... 15,000
Fund Balance—Unassigned ........................................ 15,000
To return encumbered amount to fund balance.
(c) Taxes Receivable—Current ................................................ 650,000
Allowance for Uncollectible Current Taxes .................. 6,500
Revenues .................................................................... 643,500
To record tax levy.
15–19 Ch. 15—Problems
Problem 15-6, Continued
Tax Liens Receivable ......................................................... 8,000
Allowance for Uncollectible Delinquent Taxes .................... 3,000
Taxes Receivable—Delinquent ................................... 8,000
Allowance for Uncollectible Tax Liens ......................... 3,000
To record tax liens and reclassify related
uncollectibles.
(g) Expenditures ....................................................................... 8,000
Supplies Inventory ....................................................... 8,000
To record consumption of inventory.
Fund Balance—Unassigned ............................................... 2,000
Fund Balance—Nonspendable ................................... 2,000
To establish supplies reserve.
(j) Other Financing Uses ......................................................... 20,000
Cash ............................................................................ 20,000
To record transfers made to other funds.
(Requires entries in other funds.)
Problem 15-6, Continued
(l) Cash ................................................................................... 100,000
Notes Receivable ................................................................ 280,000
Other Financing Sources ............................................. 250,000
Revenues .................................................................... 130,000
To record sale of land. Only the $130,000 gain is
new revenue. (Requires entry in general fixed
assets account group.)
(2) Appropriations ............................................................................ 875,000
Estimated Other Financing Uses ............................................... 20,000
Budgetary Fund Balance—Unassigned ..................................... 32,000
Estimated Revenues ........................................................... 900,000
Problem 15-6, Concluded
(3) City of Toma
General Fund
Budgetary Comparison Schedule
For Year Ended December 31, 2019
Variance—
Favorable
Budget
Actual (Unfavorable)
Revenues .................................................................... $ 900,000 $1,139,100 $ 239,100
Expenditures ............................................................... 875,000 1,007,000 (132,000)
Excess of revenues over expenditures ....................... $ 25,000 $ 132,100 $ 107,100
Other financing sources .............................................. 27,000 273,000 246,000
PROBLEM 15-7
(1) Year 1:
General Fund Expenditures ................................................. 15,000,000
Cash ....................................................... 15,000,000
Problem 15-7, Concluded
(2) Year 2:
General Fund Expenditures ................................................. 20,000,000
Cash ....................................................... 20,000,000
PROBLEM 15-8
(1) Expenditures
(3) Amount to Be Provided for Lease Payments ............................. 120,000
Capital Lease Payable ......................................................... 120,000
PROBLEM 15-9
Entry in General Fixed
Entry in General Fund Assets Account Group
(a) Expenditures .......................... 80,000 Machinery and Equipment ................. 80,000
Voucher Payable ............... 80,000 Investment in General Fixed
from equipment sale. To remove equipment sold.
(c) No entry. Land ................................................... 100,000
Investment in General Fixed
Assets—Donations .................. 100,000
To record donated land.
Investment in General Fixed
Assets—General Fund
Revenues ................................ 110,000
To record new snow plow
acquired.
PROBLEM 15-10
Trans- Fund or
action Group Entry
(a) GLTDAG Amount to Be Provided for Payment
of Term Bonds ........................................... 2,700,000
Serial Bonds .............................................. 135,000
Amount to Be Provided for Payment
of Serial Bonds ............................... 135,000
(d) General Expenditures .................................................... 22,000
Fund Cash .......................................................... 22,000
15–25 Ch. 15—Problems
PROBLEM 15-11
(1) (a) Buildings ................................................................................... 850,000
Construction in Progress ................................................... 250,000
Investment in General Fixed Assets—
Capital Projects Funds ............................................... 600,000
To record completion of new school.
Investment in General Fixed Assets—General
Fund Revenues ................................................................. 65,000
Machinery and Equipment ......................................... 65,000
To record trade-in of old engine.
(e) Buildings ................................................................................... 40,000
Problem 15-11, Concluded
(2) City of Elmcreek
Schedule of Capital Assets
December 31, 2019
Beg. Balance Additions Retirements End. Balance
Governmental activities:
Land .................................................. $1,000,000 $ 140,000 $1,140,000
Buildings ............................................ 2,150,000 890,000 3,040,000
Construction in progress ................... 250,000 $ 250,000 0
Machinery and equipment ................. 800,000 120,000 65,000 855,000
PROBLEM 15-12
(1) (a) 2014
July 1 Amount to Be Provided for Payment of Term Bonds ............ 1,500,000
Term Bonds Payable ...................................................... 1,500,000
To record issuance of term bonds for school project.
15–27 Ch. 15—Problems
Problem 15-12, Continued
Dec. 31 Amount Available in Debt Service Funds—Serial Bonds ..... 5,600
Amount to Be Provided for Payment of Serial Bonds ..... 5,600
To record 2016 earnings of sinking fund
($70,000 × 8%). This same entry would be
repeated at the end of each year, using the
following annual earnings:
Serial Annual Cumulative Annual Amount Available
Redemption Deposit Balance Earnings for Serial Bond
Year January 1 January 2 January 2 at 8% Redemption December 31
2019
Jan. 1 Serial Bonds Payable ........................................................ 100,000
Amount Available in Debt Service Funds—
(c) No entry in general long-term debt account group, because proprietary funds maintain
their own records of long-term debt.
(d) 2017
Jan. 1 Amount to Be Provided for Payment of Term Bonds ......... 400,000
Term Bonds Payable ................................................... 400,000
To record issuance of term bonds.
Problem 15-12, Concluded
(2) City of Clinton
Schedule of General Long-Term Liabilities
December 31, 2019
General Long-Term Liabilities
Beginning Ending
Balance
Additions Deductions Balance
Term bonds payable .......................... $1,900,000 $ 0 $1,900,000
PROBLEM 15-13
(1) Purchases Method—When the purchases method is used, the purchase of inventory is in-
(3) $89,000—Vouchers payable is the amount due suppliers.
(5) $52,000—The debt service principal is calculated as $74,000 debt service expenditures
less $22,000 interest amount.
15–29 Ch. 15—Problems
PROBLEM 15-14
(1) Oneida Township
General Fund Worksheet
For Six Months Ended June 30, 2018
Revenues and
Trial Balance
Operating Entries Expenditures Balance Sheet
Dr.
Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash ................................................................................ 45,000 .......... (b) 120,000 (h) 204,000 ............ ............ ............... ...............
.......... .......... (d) 4,000 ............... ............ ............ ............... ...............
.......... .......... (f) 344,000 ............... ............ ............ 309,000 ...............
Vouchers Payable ........................................................... .......... 43,000 (h) 151,000 (g) 186,000 ............ ............ ............... 78,000
Due to Utility Fund ........................................................... .......... 4,000 (h) 4,000 ............... ............ ............ ............... ...............
Fund Balance—Nonspendable ....................................... .......... 5,000 ............... (i) 16,000 ............ ............ ............... 21,000
Fund Balance—Unassigned ........................................... .......... 31,000 (i) 16,000 ............... ............ ............ ............... 15,000
.......... .......... ............... (f) 23,000 ............ 447,400 ............... ...............
Expenditures ................................................................... .......... .......... (i) 10,000 ............... ............ ............ ............... ...............
.......... .......... (g) 160,000 ............... ............ ............ ............... ...............
.......... .......... (h) 49,000 ............... 219,000 ............ ............... ...............
Problem 15-14, Concluded
(2) Oneida Township
General Fund Balance Sheet
June 30, 2018
Assets and Resources
Current Assets:
Cash ........................................................................................... $309,000
Taxes receivable—current ......................................................... $140,000
Liabilities and Fund Equity
Liabilities:
Tax anticipation notes payable ................................................... $120,000
Vouchers payable ...................................................................... 78,000
Total liabilities ....................................................................... $198,000
Fund Balances:
