Acct 522 81 E September 16 Fall, 2014 Wilson

Chapter Three: Q 2; and, E 5, 6, and 7, and Chapter Four: E 4, 5, 6, 7, 9, and 10.

3-2. Using the net (expense) or revenue format recommended by GASB standards requires reporting
of expenses that are directly related to a function or program on the same line as that function or
program. Indirect expenses, those that are not directly related to a function or program, such as
interest on long-term debt, should be reported on a separate line. It is important to correctly
identify the nature of the expenses so they will be reported on the line of the right function or
program, or as a separate line item. Otherwise, incorrect amounts will be reported for particular
functions/program costs.

3-5. City of Jackson
a. Estimated revenues totalFY 2014 $ 4,650,000
Appropriations totalFY 2014 4,850,000
Therefore, unassigned fund balances at the
end of FY 2013 must be at least $ (200,000)
or else the fund would be thrown into a deficit.

General Ledger Subsidiary Ledger
Debits Credits Debits Credits
b. ESTIMATED REVENUES 4,650,000
BUDGETARY FUND
BALANCE 200,000
APPROPRIATIONS 4,850,000

Estimated Revenues Ledger:
TAXES 3,000,000
INTERGOVERNMENTAL REVENUES 1,000,000
LICENSES AND PERMITS 400,000
FINES AND FORFEITS 150,000
MISCELLANEOUS REVENUES 100,000

Appropriations Ledger:
GENERAL GOVERNMENT 1,000,000
PUBLIC SAFETY 2,000,000
PUBLIC WORKS 950,000
HEALTH AND WELFARE 850,000
MISCELLANEOUS 50,000


3-6. City of Jackson (Contd)
General Ledger Subsidiary Ledger
Debits Credits Debits Credits
a. ENCUMBRANCES2014 395,000
ENCUMBRANCES
OUTSTANDING2014 395,000

Encumbrances Ledger:
GENERAL GOVERNMENT 50,000
PUBLIC SAFETY 200,000
PUBLIC WORKS 75,000
HEALTH AND WELFARE 65,000
MISCELLANEOUS 5,000

b. Purchase orders issued by a governmental fund have the effect of using all or a portion of one
or more appropriations for that fund. Issuance of purchase orders or other commitment
documents is a step in the expenditure of an appropriation; administrators may be subject to
legal penalties if they expend more resources than were appropriated. Recording
encumbrances helps administrators avoid over-expending appropriations.
The same legal issues do not exist in business organizations, although a well-managed business
should certainly keep track of outstanding purchase orders and contracts to have a clear
understanding of what transactions are in process that will result in the acquisition of assets,
the incurring of expenses, and the incurring of liabilities.


3-7.
General Ledger Subsidiary Ledger
Debits Credits Debits Credits
a. ESTIMATED REVENUES 2,700,000
BUDGETARY FUND
BALANCE 50,000
APPROPRIATIONS 2,650,000

Estimated Revenues Ledger:
TAXES 1,900,000
LICENSES AND PERMITS 350,000
FINES AND FORFEITS 250,000
INTERGOVERNMENTAL
REVENUES 200,000
Appropriations Ledger:
GENERAL GOVERNMENT 500,000
PUBLIC SAFETY 1,600,000
PUBLIC WORKS 350,000
PARKS AND RECREATION 150,000
MISCELLANEOUS 50,000

b.
General Ledger Subsidiary Ledger
Debits Credits Debits Credits
1. CASH 43,000
REVENUES 43,000
Revenues Ledger:
LICENSES AND PERMITS 31,000
FINES AND FORFEITS 12,000

General Ledger Subsidiary Ledger
Debits Credits Debits Credits
2. ENCUMBRANCES2014 29,900
ENCUMBRANCES
OUTSTANDING2014 29,900
Encumbrances Ledger:
GENERAL GOVERNMENT 7,400
PUBLIC SAFETY 11,300
PUBLIC WORKS 6,100
PARKS AND RECREATION 4,200
MISCELLANEOUS 900

3. ENCUMBRANCES
OUTSTANDING2014 29,100
ENCUMBRANCES2014 29,100
EXPENDITURES2014 29,200
CASH 29,200
Encumbrances Ledger:
GENERAL GOVERNMENT 7,400
PUBLIC SAFETY 10,700
PUBLIC WORKS 5,900
PARKS AND RECREATION 4,200
MISCELLANEOUS 900
Expenditures Ledger:
GENERAL GOVERNMENT 7,300
PUBLIC SAFETY 10,800
PUBLIC WORKS 6,100
PARKS AND RECREATION 4,100
MISCELLANEOUS 900






















c. CALCULATION OF BUDGETED BUT UNREALIZED REVENUES
AS OF JULY 31, 2013
UNREALIZED
SOURCE BUDGETED ACTUAL REVENUE
PROPERTY TAXES $1,900,000 $ -0- $1,900,000
LICENSES AND PERMITS 350,000 31,000 319,000
FINES AND FORFEITS 250,000 12,000 238,000
INTERGOVERNMENTAL 200,000 -0- 200,000
TOTAL $2,700,000 $43,000 $2,657,000


d. CALCULATION OF AVAILABLE APPROPRIATIONS, AS OF JULY 31, 2013
AVAILABLE
APPROPRIATIONS ENCUMBRANCES EXPENDITURES APPROPRIATIONS
GENERAL GOVERNMENT $ 500,000 $ -0- $ 7,300 $ 492,700
PUBLIC SAFETY 1,600,000 600 10,800 1,588,600
PUBLIC WORKS 350,000 200 6,100 343,700
PARKS AND RECREATION 150,000 -0- 4,100 145,900
MISCELLANEOUS 50,000 -0- 900 49,100
TOTAL $2,650,000 $800 $29,200 $2,620,000

Chapter Four: E 4, 5, 6, 7, 9, and 10.
4-4. Village of Darby

a. Revenues = levy (.03 X levy) = .97 X levy = $2,660,000

Levy = $2,660,000 .97 = $2,742,268 (rounded to nearest dollar)

Rate X (assessed valuation 100) = levy

Rate = levy (assessed valuation 100)

Rate = $2,742,268 1,357,143 = $2.02 per $100 of assessed valuation

Debits Credits

b. TAXES RECEIVABLECURRENT 2,742,268
ESTIMATED UNCOLLECTIBLE CURRENT TAXES 82,268
REVENUES 2,660,000

c. CASH 2,540,000
TAXES RECEIVABLECURRENT 2,540,000

TAXES RECEIVABLEDELINQUENT 202,268
TAXES RECEIVABLECURRENT 202,268

ESTIMATED UNCOLLECTIBLE CURRENT TAXES 82,268
ESTIMATED UNCOLLECTIBLE DELINQUENT
TAXES 82,268

INTEREST AND PENALTIES RECEIVABLE 12,136
ESTIMATED UNCOLLECTIBLE INTEREST
AND PENALTIES 1,214
REVENUES 10,922


4-5. a. City of Troy
Calculation of Estimated Required
Tax Anticipation Financing

Estimated Expenditure Requirements:
Budgeted expenditures, remainder of FY 2014 $2,500,000
Current liabilities payable 830,000 $3,330,000
Estimated Resources Available:
Cash on hand, April 1, 2014 770,000
Collections of budgeted FY 2014 revenues
and delinquent property taxes, including
interest and penalties 1,100,000 1,870,000
Estimated Amount of Required Tax
Anticipation Note Financing $1,460,000

b. General Fund and Governmental Activities: Debits Credits
CASH 1,460,000
TAX ANTICIPATION NOTES PAYABLE 1,460,000

b. General Fund:
TAX ANTICIPATION NOTES PAYABLE 1,460,000
EXPENDITURES2014 43,800
CASH 1,503,800

Governmental Activities:
TAX ANTICIPATION NOTES PAYABLE 1,460,000
EXPENSESGENERAL GOVERNMENT 43,800
CASH 1,503,800

(Note: Interest on notes is $1,460,000 X .06 X 6/12
=$43,800)



4-6. CITY OF MARSHALL
GENERAL JOURNAL

Debits Credits
a. General Fund:
INVENTORY OF SUPPLIES 12,000
FUND BALANCENONSPENDABLE
INVENTORY OF SUPPLIES 12,000


b. General Fund:
APPROPRIATIONS 6,224,000
ESTIMATED OTHER FINANCING USES 2,776,000
ESTIMATED REVENUES 7,997,000
BUDGETARY FUND BALANCE 1,003,000

REVENUES 7,980,000
FUND BALANCEUNASSIGNED 982,000
EXPENDITURES 6,192,000
OTHER FINANCING USES 2,770,000



























4-7. CITY OF SMITHTON
GENERAL JOURNAL

(1) May 1, 2014
Debits Credits

DUE FROM STATE GOVERNMENT 200,000
DEFERRED REVENUES 200,000

(Note: There are no eligibility requirements stipulated in the
grant. Thus, the grant can be recorded upon
notification. There are, however, time requirements
that half of the grant is to be used in each of the
2015 and 2016 fiscal years. Therefore, revenues
cannot be recognized until the period for which
use of the grant is intended.)

(2) July 1, 2014

CASH 100,000
DUE FROM STATE GOVERNMENT 100,000

DEFERRED REVENUES 100,000
REVENUES 100,000

(3) During FY 2015

EXPENDITURES 90,000
VOUCHERS PAYABLE (or CASH) 90,000

(4) July 1, 2015

Same entries as part (2).

4-9. a. CITY OF ATWATER
Debits Credits
1. General Fund:
EXPENDITURES 100,000
CASH 100,000

Governmental Activities:
EXPENSESPUBLIC SAFETY 100,000
CASH 100,000

Enterprise Fund:
CASH 100,000
REVENUES 100,000


2. General Fund:
CASH 500
EXPENDITURES 500

Governmental Activities:
A
CASH 500
EXPENSESGENERAL GOVERNMENT 500

Note A: There is no business-type activities ledger since the government-wide data
will be the same as that of the enterprise fund.

Debits Credits

Enterprise Fund:
SUPPLIES EXPENSE 500
CASH 500


3. General Fund:
INTERFUND LOANS RECEIVABLE
NONCURRENT 50,000
CASH 50,000

FUND BALANCEUNASSIGNED 50,000
FUND BALANCENONSPENDABLE
NONCURRENT INTERFUND LOANS
RECEIVABLE 50,000

Governmental Activities: NO EFFECT

Internal Service Fund:
CASH 50,000
INTERFUND LOANS PAYABLE
NONCURRENT 50,000

4. General Fund:
OTHER FINANCING USESINTERFUND
TRANSFERS OUT 100,000
CASH 100,000

Governmental Activities: NO EFFECT

Debt Service Fund:
CASH 100,000
OTHER FINANCING SOURCES
INTERFUND TRANSFERS IN 100,000

)
Debits Credits
5. General Fund:
CASH 5,000
OTHER FINANCING SOURCES
INTERFUND TRANSFERS IN 5,000

Governmental Activities:
NO EFFECT

Capital Projects Fund:
OTHER FINANCING USES
INTERFUND TRANSFERS OUT 5,000
CASH 5,000

b. Proprietary funds, such as the enterprise fund, measure total economic resources using the
accrual basis of accounting. Since this is the same measurement focus and basis of accounting
used at the government-wide level, there would be no difference between entries in the
enterprise fund and a business-type activities journal. Note that although the internal service
funds are proprietary funds focusing on total economic resources using the accrual basis of
accounting, they are combined with governmental activities if they predominantly provide
services to departments within the government rather than to enterprise funds.



4-10. a. CITY OF HINTON
JOURNAL ENTRIES FY 2014
Debits Credits
General Fund:
(1) ESTIMATED REVENUES 3,140,000
APPROPRIATIONS 3,100,000
BUDGETARY FUND BALANCE 40,000

General Fund:
(2) CASH 490,000
EXPENDITURES2014 10,000
TAX ANTICIPATION NOTES PAYABLE 500,000
(COMPUTATION OF DISCOUNT: $500,000 X .06 X 1/3 YEAR = $10,000.)

Governmental Activities:
CASH 490,000
EXPENSESGENERAL GOVERNMENT 10,000
TAX ANTICIPATION NOTES PAYABLE 500,000


Debits Credits
General Fund:
(3) TAXES RECEIVABLECURRENT 2,150,000
ESTIMATED UNCOLLECTIBLE CURRENT
TAXES 64,500
REVENUES 2,085,500
(COMPUTATIONS: $43,000,000 ASSESSED VALUATION X $5 TAX RATE PER $100 = $2,150,000 GROSS
LEVY; $2,150,000 GROSS LEVY X .03 = $64,500 ESTIMATED UNCOLLECTIBLE.)

Governmental Activities:
TAXES RECEIVABLECURRENT 2,150,000
ESTIMATED UNCOLLECTIBLE CURRENT
TAXES 64,500
GENERAL REVENUESPROPERTY TAXES 2,085,500

General Fund:
(4) ENCUMBRANCES2014 2,060,000
ENCUMBRANCES OUTSTANDING2014 2,060,000

General Fund and Governmental Activities:
(5) TAXES RECEIVABLECURRENT 25,000
REVENUES (General Revenues in Governmental Activities) 25,000
($500,000 X $5 PER $100 OF VALUATION)

General Fund and Governmental Activities:
(6) CASH 2,364,840
TAXES RECEIVABLECURRENT 1,961,000
TAXES RECEIVABLEDELINQUENT 383,270
INTEREST AND PENALTIES RECEIVABLE 20,570
)
Debits Credits
General Fund:
(7) INTEREST AND PENALTIES RECEIVABLE 38,430
ESTIMATED UNCOLLECTIBLE INTEREST
AND PENALTIES 11,529
REVENUES 26,901
Governmental Activities:
INTEREST AND PENALTIES RECEIVABLE 38,430
ESTIMATED UNCOLLECTIBLE INTEREST
AND PENALTIES 11,529
GENERAL REVENUESINTEREST AND
PENALTIES ON DELINQUENT TAXES 26,901

General Fund:
(8) BUDGETARY FUND BALANCE 80,000
ESTIMATED REVENUES 80,000
(THIS ENTRY ADJUSTS THE ORIGINAL BUDGETARY INCREASE OF $40,000 IN BUDGETARY FUND BALANCE
TO A NET DECREASE OF $40,000.)

General Fund:
(9) EXPENDITURES2014 819,490
DUE TO FEDERAL GOVERNMENT 166,400
DUE TO STATE GOVERNMENT 34,400
CASH 618,690
Governmental Activities:
EXPENSES (function details omitted) 819,490
DUE TO FEDERAL GOVERNMENT 166,400
DUE TO STATE GOVERNMENT 34,400
CASH 618,690
Debits Credits
General Fund:
(10) EXPENDITURES2014 62,690
DUE TO FEDERAL GOVERNMENT 62,690
Governmental Activities:
EXPENSES(function details omitted) 62,690
DUE TO FEDERAL GOVERNMENT 62,690

General Fund:
(11) CASH 947,000
REVENUES 947,000

Governmental Activities:
CASH 947,000
REVENUES(itemize as program
or general and by source) 947,000

General Fund and Governmental Activities:
(12) DUE TO FEDERAL GOVERNMENT 288,580
DUE TO STATE GOVERNMENT 34,400
VOUCHERS PAYABLE 322,980

General Fund:
(13) ENCUMBRANCES OUTSTANDING2014 1,988,040
ENCUMBRANCES2014 1,988,040
EXPENDITURES2014 1,987,570
VOUCHERS PAYABLE 1,987,570
Governmental Activities:
EXPENSES(function details omitted) 1,987,570
VOUCHERS PAYABLE 1,987,570
Debits Credits
General Fund:
(14) VOUCHERS PAYABLE 2,301,660
CASH 2,293,630
EXPENDITURES2014 8,030
Governmental Activities:
VOUCHERS PAYABLE 2,301,660
CASH 2,293,630
EXPENSES(function detail omitted) 8,030

General Fund and Governmental Activities:
(15) TAX ANTICIPATION NOTES PAYABLE 500,000
CASH 500,000

General Fund and Governmental Activities:
(16) TAXES RECEIVABLEDELINQUENT 214,000
TAXES RECEIVABLECURRENT 214,000

ESTIMATED UNCOLLECTIBLE CURRENT
TAXES 64,500
ESTIMATED UNCOLLECTIBLE
DELINQUENT TAXES 64,500

General Fund:
(17) INVENTORY OF SUPPLIES 3,000
FUND BALANCENONSPENDABLE
INVENTORY OF SUPPLIES 3,000
Governmental Activities:
INVENTORY OF SUPPLIES 3,000
EXPENSES (Function details omitted) 3,000

Debits Credits
b. CLOSING ENTRIES, APRIL 30, 2014
General Fund:
APPROPRIATIONS 3,100,000
ESTIMATED REVENUES 3,060,000
BUDGETARY FUND BALANCE 40,000

REVENUES 3,084,401
EXPENDITURES2014 2,871,720
FUND BALANCEUNASSIGNED 212,681

Governmental Activities:
(Not closed here since the governmental activities general ledger includes operating
statement transactions related to all governmental funds, not just those of the General Fund.
See Chapter 9 for an example of closing the governmental activities temporary accounts.)


c.
CITY OF HINTON
GENERAL FUND BALANCE SHEET
AS OF APRIL 30, 2014

ASSETS
CASH $ 486,520
TAXES RECEIVABLEDELINQUENT $413,730
LESS: ESTIMATED UNCOLLECTIBLE
TAXESDELINQUENT 253,500 160,230
INTEREST AND PENALTIES RECEIVABLE 44,140
LESS: ESTIMATED UNCOLLECTIBLE
INTEREST AND PENALTIES 22,689 21,451
INVENTORY OF SUPPLIES 19,100
TOTAL ASSETS $ 687,301

LIABILITIES AND FUND BALANCES
LIABILITIES:
VOUCHERS PAYABLE $157,390
FUND BALANCES:
NONSPENDABLEINVENTORY
OF SUPPLIES $ 19,100
UNASSIGNED 510,811
TOTAL FUND BALANCES 529,911
TOTAL LIABILITIES AND FUND BALANCES $ 687,301


d. CITY OF HINTON
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED APRIL 30, 2014

REVENUES
TAXES $2,110,500
INTEREST AND PENALTIES ON TAXES 26,901
OTHER SOURCES 947,000
TOTAL REVENUES 3,084,401
EXPENDITURES
SALARIES AND WAGES 882,180
INTEREST ON NOTE PAYABLE 10,000
OTHER 1,979,540
TOTAL EXPENDITURES 2,871,720
EXCESS OF REVENUES OVER EXPENDITURES 212,681
INCREASE IN INVENTORY OF SUPPLIES 3,000
FUND BALANCES, MAY 1, 2013 314,230
FUND BALANCES, APRIL 30, 2014 $ 529,911

Computations:
Taxes = [4-10(3) 2,085,500 + 4-10(5) 25,000]
Interest and Penalties on Taxes = [4-10(7) 26,901]
Other Sources = [4-10(11) 946,700]
Salaries and Wages = [4-10(9) 819,490 + 4-10(10) 62,690]
Interest on Notes Payable = [4-10(2) $10,000]
Other = [4-10(13) 1,987,570 - 4-10(14) 8030]


NOTE: The Governmental Activities general ledger is not shown here.

CITY OF HINTON
General Fund
General Ledger (Not Required)

Cash Interest and Penalties Rec.__ ____
5/1/2013 Bal. 97,000 4-10(9) 618,690 5/1/2013 Bal.26,280 4-10(6) 20,570
4-10(2) 490,000 4-10(14) 2,293,630 4-10(7) 38,430
4-10(6) 2,364,840 4-10(15) 500,000 4/30/2014 Bal 44,140
4-10(11) 947,000
4/30/2014 Bal. 486,520

Taxes ReceivableCurrent Est. Uncollectible Interest & Penalties _
4-10(3) 2,150,000 4-10(6) 1,961,000 5/1/2013 Bal. 11,160
4-10(5) 25,000 4-10(16) 214,000 4-10(7) 11,529
4/30/2014 Bal. -0- 4/30/2014 Bal. 22,689


Est. Uncollectible Current Taxes Inventory of Supplies_________
4-10(16) 64,500 4-10(3) 64,500 5/1/2013 Bal.16,100
4/30/2014 Bal. -0- 4-10(17) 3,000
4/30/2014 Bal. 19,100

Taxes ReceivableDelinquent
5/1/2013 Bal. 583,000 4-10(6) 383,270
4-10(15) 214,000
4/30/2014 Bal. 413,730


Est. Uncollectible Delinquent Taxes Vouchers Payable___________
5/1/2013 Bal.189,000 4-10(14) 2,301,660 5/1/2013 Bal 148,500
4-10(16) 64,500 4-10(12) 322,980
4/30/2014 Bal. 253,500 4-10(13) 1,987,570 4-10(13) 1,987,570
4/30/2014 Bal. 157,390


Due to Federal Government Revenues____________
4-10(12) 288,580 5/1/2013 Bal. 59,490 4-10. b 3,084,401 4-10(3) 2,085,500
4-10(9) 166,400 4-10(5) 25,000
4-10(10) 62,690 4-10(7) 26,901
4/30/2014 Bal. -0- 4-10(11) 947,000

Due to State Government Expenditures2014_________
4-10(12) 34,400 4-10(9) 34,400 4-10(2) 10,000 4-10(14) 8,030
4/30/2014 Bal. -0- 4-10(9) 819,490 4-10. b 2,871,720
4-10(10) 62,690
4-10(13) 1,987,570

Tax Anticipation Notes Payable
4-10 (15) 500,000 4-10 (2) 500,000
4/30/2014 Bal. -0-
Fund BalanceNonspendable
Fund BalanceUnassigned ____Inventory of Supplies _
5/1/2013 Bal. 298,130 5/1/2013 Bal. 16,100
4-10. b 212,681 4-10(17) 3000
4/30/2014 Bal. 510,811 4/30/2014 Bal. 19,100

Estimated Revenues ____ Encumbrances2014__________
4-10(1) 3,140,000 4-10(8) 80,000 4-10(4) 2,060,000 4-10(13) 1,988,040
4-10. b 3,060,000 4/30/2014 Bal. 71,960

Appropriations Encumbrances Outstanding2014___
4-10. b 3,100,000 4-10(1) 3,100,000 4-10(13) 1,988,040 4-10(4) 2,060,000
4/30/2014 Bal. 71,960
Budgetary Fund Balance
4-10(8) 80,000 4-10(1) 40,000
4-10. b 40,000