PROBLEM 17-6 Balance Sheet, Stalement of Revenues, Expenditures, and Changes in
ID: 2391773 • Letter: P
Question
PROBLEM 17-6 Balance Sheet, Stalement of Revenues, Expenditures, and Changes in Fund Balance LO8 Hunnington Township's adjusied trial balance for the General Fund at the close of its fiscal year ended June 30, 2016, is presenied here: General Fund Trial Balance June 30, 2016 $11,000 Cash Property Tax Receivable curret (Note 1) Eistimated Uncollectible Taxes current Property Tax Receivable deinquent Estimated Uncolloctible Taxes delinquent Accounts Receivable (Note 1) Allowance for Uncollectible Accounts Due from Inlernal Service Fund (Note 5) Expenditures (Nole 2) $1,500 25,000 4,000 0,000 755,000 37,000 Revenue (Note 3) Due to Interprise Fund (Nole ?) Vouchers Payable Surplus Roceipts(Nole 4 10,000 20,000 7,000 720,000 81,000 80,000 $1,000,000 ud Balance Assigned (Nole 6) ud Balance Unasssigaed $1,000,000 Nole 1: The current tax roll and accounts receivable, recorded on the axcrual basis as sources of revenue amounied to $500,000 and $200,000, respectively. Nole 2: Includes $42,500 paid during the fiscal year in settlement of all purchase onders outstanding at the beginning o the fiscal year Copyright 02015 John Wiley & Sons, Inc. Nole 3 Represents the difference between the budgeled (estimated) revenue of S700,000 and the actual revenue realized during the fiscal year. Nole 4 Represents the proceeds from the sale of oqripment damaged by fire. The equipment originally cost $40,000 and had been held for 80% of its useful life prior to the fire. Nole 5:The interfund payable and receivable resulled from cash advances (loans) do and from the respec tive funds Nole 6Includes $44,000 of encumbrances from prior year A. Prepare a statement of revenues, expenditures, and changes in fund balance B. Prepare a balance sheet for the General Fund at June 30, 2016 (AICPA adapted)Explanation / Answer
Solution
(A)
THE HUNNINGTON TOWNSHIP
Statement of Revenues, Expenditures and
Changes in Fund Balance
For the Year Ended June 30, 2016
The Revenue
The Expenditures:
The Current Year’s Appropriation
The Prior Year’s Appropriation
Total
Excess of Revenues over Expenditures
Sale of Equipment
Increase (Decrease) in Fund Balance
Fund Balance July 1, 2015
Fund Balance June 30, 2016
a $700,000 + $60,000 = $767,000
b $755,000 - $42,500 = $712,500
c Unreserved fund balance per trial balance
Add appropriations
Deduct estimated revenue (note 3)
The Unreserved fund balance - July 1, 2015
Reserve for encumbrances - July 1, 2015
Fund Balance - July 1, 2015
The Unreserved fund balance per trial balance
Add revenue in excess of estimated revenue ($767,000 - $700,000)
The Deduct expenditures and encumbrances in excess of appropriations
[($755,000 + $37,000) - $764,000]
The Unreserved fund balance - June 30, 2016
The Reserve for encumbrances
Fund Balance - June 30, 2016
$760,000a
712,500b
42,500
755,000
5,000
7,000
12,000
144,000c
$156,000d
$80,000
720,000
(700,000)
100,000
44,000
$144,000
$80,000
67,000
(28,000)
119,000
37,000
$156,000
(B)
THE HUNNINGTON TOWNSHIP
The General Fund
Balance Sheet
June 30, 2016
Assets
Cash
The Property Tax Receivable
Less Estimated Uncollectible Taxes
The Accounts Receivable
Less Allowance for Uncollectible Accounts
The Due from Internal Service Fund
Total
Liabilities and Fund Balance
The Vouchers Payable
The Due to Enterprise Fund
The Fund Balance:
The Unreserved
The Reserve for Encumbrances
Total
$107,000
18,000
40,000
4,000
$119,000
37,000
$11,000
89,000
36,000
50,000
$186,000
$20,000
10,000
156,000
$186,000
(A)
THE HUNNINGTON TOWNSHIP
Statement of Revenues, Expenditures and
Changes in Fund Balance
For the Year Ended June 30, 2016
The Revenue
The Expenditures:
The Current Year’s Appropriation
The Prior Year’s Appropriation
Total
Excess of Revenues over Expenditures
Sale of Equipment
Increase (Decrease) in Fund Balance
Fund Balance July 1, 2015
Fund Balance June 30, 2016
a $700,000 + $60,000 = $767,000
b $755,000 - $42,500 = $712,500
c Unreserved fund balance per trial balance
Add appropriations
Deduct estimated revenue (note 3)
The Unreserved fund balance - July 1, 2015
Reserve for encumbrances - July 1, 2015
Fund Balance - July 1, 2015
The Unreserved fund balance per trial balance
Add revenue in excess of estimated revenue ($767,000 - $700,000)
The Deduct expenditures and encumbrances in excess of appropriations
[($755,000 + $37,000) - $764,000]
The Unreserved fund balance - June 30, 2016
The Reserve for encumbrances
Fund Balance - June 30, 2016
$760,000a
712,500b
42,500
755,000
5,000
7,000
12,000
144,000c
$156,000d
$80,000
720,000
(700,000)
100,000
44,000
$144,000
$80,000
67,000
(28,000)
119,000
37,000
$156,000
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