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Item 5. Debt Service Fund:
PART E (20 minutes) Enterprise Fund entries
Item 1. No entry needed. Record opening balances in T accounts.
Item 2. Cash 70,000
Item 3. Salary expense 8,000
Item 4. Bonds payable 40,000
PART F (120 minutes)
Pre-Closing trial balances for Coco City
General Fund
December 31, 2013
Debits Credits
Budgetary Accounts
Estimated revenues – property taxes $400,000
Encumbrances – police supplies 4,000
Budgetary fund balance, reserved for encumbrances 4,000
Financial Accounts
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Capital Projects Fund
December 31, 2013
Debt Service Fund
December 31, 2013
Cash $ 5,000
Swimming Pool Enterprise Fund
December 31, 2013
Cash $ 3,000
Swimming Pool 600,000
1. Governmental Funds Balance Sheet
Coco City
Balance Sheet
Governmental Funds
December 31, 2013
Total
Debt Capital Governmental
General Service Projects Funds
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Liabilities
Salaries payable $ 13,000 $ 13,000
Deferred inflows of resources
2. Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances
Coco City
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2013
Total
Debt Capital Governmental
General Service Projects Funds
Revenues:
Property taxes $391,000 $391,000
Debt service:
Principal $ 25,000 25,000
Interest 15,000 15,000
Total other financing sources
(uses) (45,000) 45,000 500,000 500,000
Notes:
a. In this solution, the expenditures are shown in the captions generally used in preparing
b. Proceeds from bonds are shown as “proceeds from capital–related debt.” The net assets section of
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3. General Fund Budgetary Comparison Schedule
Coco City
Budgetary Comparison Schedule
General Fund
For the Year Ended December 31, 2013
Budget
Original Final Actual Variance
Revenues:
Expenditures:
Police salaries 300,000 300,000 298,000 2,000
4. Proprietary Funds Statement of Net Position
Coco City
Statement of Net Position
Proprietary Funds
December 31, 2013
Assets
Current assets – cash $ 3,000
Total current assets 3,000
Liabilities
Current liabilities – current portion of bonds payable 40,000
Net Position
Notes:
1. Current portion of bonds payable is shown separate from long-term portion.
5. Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position
Coco City
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended December 31, 2013
Operating revenues $ 70,000
CONTINUING PROBLEM 2 (T-accounts are not shown here, but students should prepare them
Part A (5 minutes)
1. General Fund
Part B (25 minutes) General Fund entries
Item 1. Estimated revenues – property taxes 9,000
Estimated revenues – personal income taxes 5,000
Item 2. Encumbrances 450
Item 3. Budgetary fund balance reserved for encumbrances 300
Encumbrances 300
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Item 4. Vouchers payable 330
Item 5. Budgetary fund balance 100
Appropriations Ledger (Public safety supplies)
Appropriation Encumbrances Expenditures Balance
Item Credit Debit Credit Debit Credit
Part C (1) (45 minutes) General Fund entries
Item 1. Cash 780
Revenues – property taxes 20
Item 2. Salaries payable 700
Item 3. Property taxes receivable 9,030
Item 4. Cash 8,100
Item 5. Cash 4,600
Item 6. Cash 700
Item 7. Expenditures – public safety salaries 6,700
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Item 8. Cash 1,000
Item 9. Expenditures – public safety salaries 350
Expenditures – public works salaries 250
Item 10. Property taxes receivable – delinquent 930
Property taxes receivable 930
Item 11. Income taxes receivable 500
Revenues – personal income taxes 500
Item 12. Expenditures – public safety salaries 10
Accrued vacation pay 10
Part C (2) (10 minutes)
Note: All these entries are made in the Library Special Revenue Fund unless indicated otherwise.
Item 1. General Fund
Transfer out to Library Special Revenue Fund 100
Item 2. Cash 300
Item 3. Cash 20
Items 4. Expenditures – culture salaries 350
Part D. (25 minutes) Capital Projects Fund entries
Item 1. Cash 1,000
Advance received on construction grant 1,000
Item 2. Encumbrances 3,000
Item 3. Budgetary fund balance reserved for encumbrances 2,800
Encumbrances 2,800
To reverse encumbrance for construction contact
Expenditures – capital outlay 2,800
Item 4. Budgetary fund balance reserved for encumbrances 200
Encumbrances 200
To reverse encumbrance for supervision contract
Retained percentage on construction contracts 140
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Part E. (20 minutes)
Note: All these entries are made in the Debt Service Fund unless otherwise indicated.
Item 1. General Fund
Transfer out to Debt Service Fund 1,200
Item 2. Expenditures – interest 50
Expenditures – bond principal 50
Item 3. Matured interest payable 50
Item 4. Expenditures – interest 470
Expenditures – bond principal 600
Matured interest payable 470
Matured bond principal payable 600
To record maturing of debt service
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Part F. (120 minutes)
Preclosing Trial Balances for Each Fund
Preclosing Trial Balance for Croton Village
General Fund
December 31, 2013
Debits Credits
Budgetary Accounts
Estimated revenues – property taxes 9,000
Estimated revenues – personal income taxes 5,000
Estimated revenues – intergovernmental 1,000
Financial Accounts
Cash 1,050
Property taxes receivable – delinquent 930
Income taxes receivable 700
Allowance for uncollectible property taxes 30
Expenditures – public safety supplies 330
Expenditures – public works salaries 4,950
Library Special Revenue Fund
December 31, 2013
Cash 35
Restricted fund balance 5
Transfer in from General Fund 100
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Capital Projects Fund
December 31, 2013
Debits Credits
Debt Service Fund
December 31, 2013
Cash 30
Governmental Funds Balance Sheet
Croton Village
Governmental Funds
Balance Sheet
December 31, 2013
Total
Debt Capital Governmental
General Library Service Projects Funds
Assets
Liabilities
Salaries payable $ 700 $ 700
Income tax refunds payable 300 300
Accrued vacation pay payable 10 _____ _____ _____ 10
Note: In the General Fund, $200 is reported as restricted fund balance because of the requirements of the
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Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances
Croton Village
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended December 31, 2013
Total
Debt Capital Governmental
General Library Service Projects Funds
Revenues:
Property taxes $ 8,880 $ 8,880
Expenditures:
Current:
Public safety 7,390 7,390
Public works 4,950 4,950
Debt service:
Principal retirement 650 650
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General Fund Budgetary Comparison Schedule
Croton Village
General Fund
Budgetary Comparison Schedule
For the Year Ended December 31, 2013
Budget
Original Final Actual Variance
Revenues:
Property taxes $ 9,000 $ 9,000 $ 8,880 $ (120)
Expenditures:
Public safety salaries 7,000 7,100 7,060 40
Public safety supplies 500 500 330 170
Other financing uses:
Transfer to Library
Fund 100 100 100 0
Transfer to Debt