The city council adopted a General Fund budget for the fiscal year. Revenues wer

Question

The city council adopted a General Fund budget for the fiscal year. Revenues were estimated at $2,030,000 and appropriations were $1,993,000.

Property taxes in the amount of $1,970,000 were levied. It is estimated that $10,500 of the taxes levied will be uncollectible.

A General Fund transfer of $26,500 in cash and $303,000 in equipment (with accumulated depreciation of $68,000) was made to establish a central duplicating internal service fund.

A citizen of Lynnwood donated marketable securities with a fair value of $830,000. The donated resources are to be maintained in perpetuity with the city using the revenue generated by the donation to finance an after school program for children, which is sponsored by the culture and recreation function. Revenue earned and received as of December 31, 2017, was $43,000.

The city’s utility fund billed the city’s General Fund $128,000 for water and sewage services. As of December 31, the General Fund had paid $127,000 of the amount billed.

During the year the internal service fund billed the city’s general government function $17,200 for duplicating services and it billed the city’s utility fund $9,600 for services.

The city council decided to build a city hall at an estimated cost of $5,030,000. To finance the construction, 6 percent bonds were sold at the face value of $5,030,000. A contract for $4,530,000 has been signed for the project; however no expenditures have been incurred as of December 31, 2017.

The general government function issued a purchase order for $33,500 for computer equipment. When the equipment was received, a voucher for $32,200 was approved for payment and payment was made.

List of Accounts:

No Journal Entry Required

Accumulated Depreciation

Allowance for Uncollectible Current Taxes

Appropriations

Billings to Departments

Bonds Payable

Budgetary Fund Balance

Cash

Charges for Services

Due from Other Funds

Due to Other Funds

Encumbrances

Encumbrances Outstanding

Equipment

Estimated Other Financing Sources

Estimated Other Financing Uses

Estimated Revenues

Expenditures

Expenditures-General Government

Expenses-Administrative

Expenses-General Government

General Revenues-Contributions for Endowment

General Revenues-Property Taxes

Internal Balances

Inventory of Supplies

Investments-Marketable securities

Other Financing Sources-Interund Transfers In

Other Financing Sources-Proceeds of Bonds

Other Financing Uses-Interfund Transfers Out

Program Revenue-General Government-Charges for Services

Program Revenue-Culture and Recreation-Operating Grants and Contributions

Program Revenue-General Government

Revenues

Revenues-Contributions for Endowment

Revenues-Investment Earnings

Taxes Receivable-Current

Using the funds you identified in part a, prepare journal entries to properly record each transaction for the fiscal year ended December 31, 2017. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

The City of Lynnwood was recently incorporated and had the following transactions for the fiscal year ended December 31, 2017. General Fund Capital projests fund CPF After School Fund (s special revenue fund) Enterprise fund SRF

Explanation / Answer

estmated revenue transfer to appropriation a/c

ESTIMATED REVENUE A/C DR

TO APPROPRIATION A/C

TO BUDGETARY FUND BALANCE A/C

$1993000

$7000

estimated uncollctible current tax a/c

TAXE RECEIVABLE A/C DR

TO ESTIMATED UNCOLLECTIBLE CURRENT TAXES A/C

TO REVENUES A/C

$10500

$1959500

cash transferred to general fund transfer a/c

GENERAL FUND TRANSFER A/C DR

TO CASH A/C

$26500

equipement and accumulated depreciation created

CASH A/C DR   

EQUIPEMENT A/C DR

TO ACCUMULATED DEPRECIATION A/C

TO TRASNFER A/C

$26500

$303000

$68000

$261500

citizens are donated marketable securities

TAXES RECEIVABLES ASSESSMENT A/C DR

TO REVENUE A/C

$43000

donated investments earn turn into deferred income

CASH A/C DR

TO DEFERRED REVENUE A/C

$43000

spent $128000 for maintenance purpose

GENERAL FUND A/C DR

TO CASH A/C

TO OUTSTANDING EXPENDITURE A/C

$127000

$1000

central duplicate fund purchase $6000 supplies

NO JOURNAL ENTRY BECAUSE IT IS DUPLICATE FUND PURCHASES

cash collections from general government

CASH A/C DR

TO PROPERTY TAX A/C

TO LICENSE AND PERMITS A/C

TO USER CHARGES A/C

$192800

$38000

$29500

internal service expenses purpose

CHARGES FOR SERVICES A/C DR

TO CASH A/C

TO UTILITY FUND A/C

$7600

$9600

construct new building for investment purpose

OTHER FINANCIANG SOURCES-PROCEEDS BOND A/C DR

TO CASH A/C

$5030000

finally contract approved at the value of $4530000

CASH A/C DR

TO OTHER FINANCING SOURCES-PROCEDD BOND A/C

$4530000

13 issued purchased order for purchasing of computer

COMPUTER EQUIPEMENT A/C DR $33500

TO PURCHASE ORDER A/C $33500

14. accept payment for purchasing the computers

COMPUTER EQUIPEMENT A/C DR $32200

TO CASH A/C $32200

DATE PARTICULARS LF DEBIT CREDIT 1

estmated revenue transfer to appropriation a/c

ESTIMATED REVENUE A/C DR

TO APPROPRIATION A/C

TO BUDGETARY FUND BALANCE A/C

$2030000

$1993000

$7000

2

estimated uncollctible current tax a/c

TAXE RECEIVABLE A/C DR

TO ESTIMATED UNCOLLECTIBLE CURRENT TAXES A/C

TO REVENUES A/C

$1970000

$10500

$1959500

3

cash transferred to general fund transfer a/c

GENERAL FUND TRANSFER A/C DR

TO CASH A/C

$26500

$26500

4

equipement and accumulated depreciation created

CASH A/C DR   

EQUIPEMENT A/C DR

TO ACCUMULATED DEPRECIATION A/C

TO TRASNFER A/C

$26500

$303000

$68000

$261500

5

citizens are donated marketable securities

TAXES RECEIVABLES ASSESSMENT A/C DR

TO REVENUE A/C

$830000

$43000

6

donated investments earn turn into deferred income

CASH A/C DR

TO DEFERRED REVENUE A/C

$43000

$43000

7

spent $128000 for maintenance purpose

GENERAL FUND A/C DR

TO CASH A/C

TO OUTSTANDING EXPENDITURE A/C

$128000

$127000

$1000

8

central duplicate fund purchase $6000 supplies

NO JOURNAL ENTRY BECAUSE IT IS DUPLICATE FUND PURCHASES

9

cash collections from general government

CASH A/C DR

TO PROPERTY TAX A/C

TO LICENSE AND PERMITS A/C

TO USER CHARGES A/C

$260300

$192800

$38000

$29500

10

internal service expenses purpose

CHARGES FOR SERVICES A/C DR

TO CASH A/C

TO UTILITY FUND A/C

$17200

$7600

$9600

11

construct new building for investment purpose

OTHER FINANCIANG SOURCES-PROCEEDS BOND A/C DR

TO CASH A/C

$5030000

$5030000

12

finally contract approved at the value of $4530000

CASH A/C DR

TO OTHER FINANCING SOURCES-PROCEDD BOND A/C

$4530000

$4530000

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