Jefferson County General Fund began the year 2015 with the following account bal

Question

Jefferson County General Fund began the year 2015 with the following account balances:

During 2015, Jefferson experienced the following transactions:

1. The budget was pased by the County Commission, providing estimated revenues of $250,000 and approprations of $200,000 and estimated financing uses of $40,000.

2. Encumbrances totaling $4,800 outstanding at Dec. 31, 2014, were re-established.

3. The Deferred Inflows- Property Taxes at Dec. 31, 2014 is recognized as revenue in the current period.

4. Property taxes in the amount of $265,000 were levied by the County. It is estimated 0.5% (1/2 of 1 percent) will be uncollectible.

5. Property tax collections totaled $258,000. Accounts totaling $1,020 were written off as uncollectible.

6. Encumbrances were issued for supplies in the amount of 36,000.

7. Supplies in the amount of $39,800 were received. Jefferson County records supplies as an asset when acquired. The related encumbrances for these items totaled $40,000 and included the $4,800 encumbered last year. The county paid $37,800 on accounts payable during the year.

8. The County contracted to have alarm systems (capital assets) installed in the administration building at a cost of $39,900. The systems were installed and the amount was paid.

9. Paid wages totaling $133,900, including the amount payable at the end of 2014. (these were general government operation)

10. Paid other general government operating items of $7,600.

11. The general fund transferred $43,000 to the debt service fund in anticipation of bond interest and prncipal payments.

Additional Info:

12. Wages earned but unpaid at the end of the year amounted to $850.

13. Supplies of $350 were on hand at the end of the year. (supplies are used for general government operations.)

14. A review of property taxes receivable indicates that $22,600 of the outstanding balances would likely be colected more than 60 days after year-end and should be deferred.

Question:

Prepare closing journal entries.Classify fund balances assuming thre are no restricted or committed net resources and the only assigned net resources are the outstanding encumbrances.

Debits Credits Cash $132,328 Taxes Receivable 47,220 Allowance for Uncollectible Taxes $1,570 Supplies 660 Deferred Inflows Property Taxes 21,000 Wages Payable 900 Fund Balance 156,758 Totals $180,228 $180,228

Explanation / Answer

Transaction No Account Title Dr Cr 1 Rstimated Revenue $250,000 Appropriations 200000 estimate Financing use 40000 General Fund balance 10000 2 Encumbrance 4800 Reserve for Encumbrance 4800 3 Deferred Inflow-Property tax 21000 Revenue-Property Tax 21000 4 Property Tax Receivable Current 265000 Estimated uncollectable Current 13250 Property Tax Revenue 251750 5 Cash 258000 Estimated uncollectable Current 7000 Property Tax Receivable Current 265000 Estimated uncollectable Current 6250 Property Tax Revenue 6250 6 Encumbrance (for supplies) 36000 reserve for encumbrance 36000 7 reserve for encumbrance 39800 Encumbrance (as $3800 of last year also used) 39800 Inventory of Suppilies 39800 Vouchers payable 39800 Accounts Payable 37800 Cash 37800 8 Fixed asset-Alarm sysytem 39900 Cash 39900 9 Wages expense 133000 Wages payable 900 Cash 133900 10 Operating Items 7600 Cash 7600 12 Wages expenses 850 Wages payable 850 13 Supplies expenses(660+39800-350) 40110 Inventory of Supplies 40110 14 Property Tax Receivable Current 22600 Deffered property Tax Receivable 22600

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