For use with McGraw Hill
Accounting for Governmental & Nonprofit Entities
19th Edition
By Jacqueline L. Reck, Suzanne L. Lowensohn, and Daniel G. Neely
Solution Set
City of Bingham
Full Version
Computerized Cumulative Problem
Description Debit Credit
Cash 742,125
Taxes Receivable-Delinquent 426,250
Allowance for Uncollectible Delinquent Taxes 36,231
Sales Taxes Receivable 14,132
Vouchers Payable 260,210
Due to Other Funds 19,400
Deferred Inflows of Resources 441,202
Fund Balance-Committed-Public Safety 18,275
Fund Balance-Committed-Culture and Recreation 22,650
Post-closing Trial Balance as of 2022
City of Bingham
1 – General Fund
Post-closing Trial Balance Prepared by: Instructor Page 1 of 1
Requirement 2-b
Description Debit Credit
Cash 1,692,125
Taxes Receivable-Delinquent 513,875
Allowance for Uncollectible Delinquent Taxes 43,681
Land 2,310,000
Improvements other than Buildings 8,900,000
Accumulated Depreciation-Improvements other than Buildings 3,310,000
Infrastructure 33,109,000
Accumulated Depreciation-Infrastructure 22,408,000
Vouchers Payable 260,210
Internal Payables to Business-Type Activities 19,400
Current Portion of Long-Term Debt 500,000
Serial Bonds Payable-3% 3,750,000
Premium on Serial Bonds Payable 43,900
Deferred Inflows of Resources 25,000
Net Position-Net Investment in Capital Assets 27,025,600
Post-closing Trial Balance as of 2022
City of Bingham
5 – Governmental Activities, Governmental-Wide level
Post-closing Trial Balance Prepared by: Instructor Page 1 of 1
Requirement 2-e
Ref Year Account Description Est. Revenues Dr(Cr) Revenues Cr(Dr) Balance
Dr(Cr)
Estimated Revenues-Property Taxes
102 2023 Budget authorization 7,672,500 7,672,500
Estimated Revenues-Licenses and Permits
102 2023 Budget authorization 485,000 485,000
Estimated Revenues-Fines and Forfeits
102 2023 Budget authorization 515,000 515,000
Estimated Revenues-Miscellaneous Revenues
102 2023 Budget authorization 220,000 220,000
Revenues Ledger
City of Bingham
1 – General Fund
Revenues Ledger Prepared by: Instructor Page 1 of 1
Requirement 3-b
Ref Account Description Enc.
Increase
Enc.
Decrease
Enc.
Balance
Exp.
Dr(Cr)
Exp.
Balance
Approp.
Cr(Dr)
Balance
Cr(Dr)
Appropriations-General
Government
102 Budget authorization 2,605,000 2,605,000
Appropriations-Health and
Welfare
102 Budget authorization 1,165,000 1,165,000
Appropriations-Culture and
Recreation
102 Budget authorization 1,075,000 1,075,000
Appropriations Ledger
City of Bingham
1 – General Fund
Appropriations Ledger Prepared by: Instructor Page 1 of 1
Requirement 3-b
Description Debit Credit
Cash 742,125
Taxes Receivable-Delinquent 426,250
Allowance for Uncollectible Delinquent Taxes 36,231
Vouchers Payable 260,210
Due to Other Funds 19,400
Deferred Inflows of Resources 441,202
Fund Balance-Committed-Public Safety 18,275
Fund Balance-Committed-Culture and Recreation 22,650
Fund Balance-Assigned-Health and Welfare 24,750
Fund Balance-Unassigned 385,972
Pre-closing Trial Balance as of 2023
City of Bingham
1 – General Fund
Pre-closing Trial Balance Prepared by: Instructor Page 1 of 1
Requirement 3-b
Debits Credits
Cash $ 799,643
Taxes Receivable-Delinquent 478,250
Allowance for Uncollectible Delinquent Taxes $ 95,731
Interest and Penalties Receivable on Taxes 64,142
Allowance for Uncollectible Interest and Penalties 11,989
Sales Taxes Receivable 21,722
Inventory of Supplies 7,000
Vouchers Payable 281,396
Due to Other Funds 35,000
Deferred Inflows of Resources 434,672
Fund Balance-Nonspendable-Inventory of Supplies 7,000
Fund Balance-Committed-Public Safety 20,300
Fund Balance-Committed-Public Works 13,790
Fund Balance-Assigned-Health and Welfare 19,500
Fund Balance-Unassigned 451,379
Encumbrances Outstanding 32,820
City of Bingham
General Fund
Post-closing Trial Balance
For year 2023
Requirement 4-b
Requirement 4-b
Assets
Cash 799,643$
Sales taxes receivable 21,722
Taxes receivable—delinquent 478,250$
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Vouchers payable 281,396$
Due to other funds 35,000
Total Liabilities 316,396
Deferred inflows of resources 434,672
Fund Balances:
Nonspendable—inventory of supplies 7,000$
Committed—public safety 20,300
City of Bingham
General Fund
Balance Sheet
As of December 31, 2023
Estimated
Revenues Dr(Cr)
Revenues Dr(Cr) Balance Dr(Cr)
Acct 3020/4020 Estimated Revenues-Property Taxes $7,680,000 $7,680,000 $0
Acct 3030/4030 Estimated Revenues-Sales Taxes 775,000 775,590 (590)
Acct 3040/4040
Estimated Revenues-Interest and Penalties on Tax
22,000 22,860 (860)
Acct 3050/4050 Estimated Revenues-Licenses and Permits 479,000 479,000 0
Acct 3060/4060 Estimated Revenues-Fines and Forfeits 519,000 519,000 0
Acct 3070/4070 Estimated Revenues-Intergovernmental Revenue 545,000 545,500 (500)
Acct 3080/4080 Estimated Revenues-Charges for Services 385,000 385,750 (750)
Acct 3090/4090 Estimated Revenues-Miscellaneous Revenues 220,000 220,500 (500)
Encumberances
Dr(Cr)
Expenditures
Dr(Cr)
Appropriations
Cr(Dr)
Available Balance
Cr(Dr)
Acct 5020 / 6020 /
Appropriations-General Government $1,940 $2,606,816 $2,609,000 $244
Acct 5030 / 6030 /
Appropriations-Public Safety 5,500 3,779,294 3,785,000 206
Acct 5040 / 6040 /
Appropriations-Public Works 15,130 1,778,281 1,790,000 (3,411)
Acct 5050 / 6050 /
Appropriations-Health and Welfare 2,125 1,162,873 1,165,000 2
Acct 5060 / 6060 /
Appropriations-Culture and Recreation 8,125 1,064,614 1,072,000 (739)
Acct 5070 / 6070 /
City of Bingham
General Fund
Operating statement account balances
For year 2023
Requirement 4-c
Requirement 4-c
Revenues
Taxes—property 7,680,000$
Taxes—sales 775,590
Interest and penalties on taxes
22,860
Licenses and permits 479,000
Fines and forfeits 519,000
Expenditures
General government 2,606,816$
Public safety 3,779,294
Public works 1,778,281
Health and welfare 1,162,873
Culture and recreation 1,064,614
Miscellaneous 108,000
Total Expenditures 10,499,878
Excess of Revenues Over Expenditures 128,322
Other Financing Sources (Uses)
Interfund transfers out (75,000)
City of Bingham
Statement of Revenues, Expenditures, and Changes in Fund Balances
General Fund
For the Year Ended December 31, 2023
Requirement 4-d
Variance with
Actual Amounts Final Budget
Original Final Budget Basis Over(Under)
Revenues
Taxes—real property 7,672,500$ 7,680,000$ 7,680,000$ –$
Taxes—sales 775,000 775,000 775,590 590
Expenditures
General government 2,605,000 2,609,000 2,608,756 (244)
Public safety 3,785,000 3,785,000 3,784,794 (206)
Public works 1,795,000 1,790,000 1,793,411 3,411
Health and welfare 1,165,000 1,165,000 1,164,998 (2)
Culture and recreation 1,075,000 1,072,000 1,072,739 739
Miscellaneous 105,000 108,000 108,000 –
Total Expenditures 10,530,000 10,529,000 10,532,698 3,698
Excess of Revenues Over Expenditures
and Encumbrances
89,500 96,000 95,502 (498)
Budgeted Amounts
City of Bingham
Statement of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual
For the Year Ended December 31, 2023
General Fund
Requirement 4-e
10,532,698$
City of Bingham
General Fund
Reconciliation of Total Expenditures to Total Expenditures and Encumbrances
For the Year Ended December 31, 2023
Expenditures for 2023, budgetary basis
Less: Encumbrances outstanding as of December 31, 2023
Debits Credits
Revenues $ 32,500
Other Financing Sources-Proceeds of Bonds 7,500,000
Construction Expenditures $ 7,524,500
Other Financing Uses-Interfund Transfers Out 8,000
City of Bingham
City Hall Annex Construction Fund
Pre-closing Trial Balance
For year 2023
Requirement 5-b
Requirement 5-b
Revenues
Investment income 32,500$
Expenditures
Construction 7,524,500
Excess of revenues over (under) expenditures (7,492,000)
Other Financing Sources (Uses)
Proceeds of bonds 7,500,000$
City of Bingham
City Hall Annex Construction Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended December 31, 2023
Debits Credits
Cash $ 895,505
Taxes Receivable-Delinquent 86,770
Allowance for Uncollectible Delinquent Taxes $ 13,950
Interest and Penalties Receivable on Taxes 6,485
Allowance for Uncollectible Interest and Penalties 652
Deferred Inflows of Resources 78,653
Fund Balance-Restricted 1,095,505
City of Bingham
Debt Service Fund
Post-closing Trial Balance
For year 2023
Requirement 6-c
Requirement 6-c
Assets
Cash 895,505$
Taxes receivable—delinquent 86,770$
Deferred Inflows of Resources and Fund Balances
Deferred inflows of resources 78,653
Fund balance—restricted 1,095,505
Total Deferred Inflows of Resources and Fund Balances 1,174,158$
City of Bingham
Debt Service Fund
Balance Sheet
As of December 31, 2023
Total Assets 1,174,158$
Debits Credits
Cash $ 895,505
Taxes Receivable-Delinquent 86,770
Allowance for Uncollectible Delinquent Taxes $ 13,950
Interest and Penalties Receivable on Taxes 6,485
Allowance for Uncollectible Interest and Penalties 652
Deferred Inflows of Resources 78,653
Fund Balance-Restricted 950,000
Budgetary Fund Balance 145,250
Estimated Revenues-Taxes 704,000
Estimated Revenues-Interest and Penalties on Taxes 2,000
Estimated Revenues-Investment Income 5,000
Estimated Other Financing Sources-Premium on Bonds 50,000
Estimated Other Financing Sources-Interfund Transfers In 83,000
Revenues-Taxes 705,400
Revenues-Interest and Penalties on Taxes 630
Revenues-Investment Income 5,000
Other Financing Sources-Premium on Bonds 50,225
Other Financing Sources-Interfund Transfers In 83,000
Expenditures-Bond Principal 500,000
Expenditures-Bond Interest 198,750
City of Bingham
Debt Service Fund
Pre-closing Trial Balance
For year 2023
Requirement 6-d
Requirement 6-d
Revenues
Expenditures
Principal 500,000$
Interest 198,750
Total Expenditures 698,750
Excess of Revenues Over(Under) Expenditures 12,280
Other Financing Sources (Uses)
Premium on bonds 50,225
Interfund transfers in 83,000
City of Bingham
Debt Service Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended December 31, 2023
Requirement 6-e
Variance with
Actual Amounts Final Budget
Original Final Budget Basis Over(Under)
Revenues
Expenditures
Principal 500,000$ 500,000$ 500,000$ –
Interest 198,750 198,750 198,750 –
Total Expenditures 698,750 698,750 698,750 –
Excess of Revenues Over(Under)
Expenditures and Encumbrances
12,250 12,250 12,280 30
Other Financing Sources (Uses):
Premium on bonds 50,000 50,000 50,225 225
City of Bingham
Debt Service Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual
For the Year Ended December 31, 2023
Budgeted Amounts
Requirement 6-f
1,409,090,909$
70,454,545
Serial bonds outstanding subject to the limit* 11,250,000$
Less: Resources set aside for debt repayment** 1,095,505 10,154,495
City of Bingham
Computation of Legal Debt Margin
As of December 31, 2023
Total Assessed Valuation
Maximum general obligation debt, limited to 5% of assessed valuation