CHAPTER 9
SOLUTIONS TO EXERCISES AND PROBLEMS
EXERCISES
E9.1
Identify Appropriate Fund
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
special revenue
capital project
enterprise
agency
internal service
pension trust
agency
capital project
debt service or general fund
general
special revenue
debt service
permanent
private-purpose trust
E9.2
Identify Appropriate Fund(s)
1.
2.
3.
debt service fund
special revenue fund
general fund (for transfer to capital projects fund and for processing and receiving the
assessments), capital projects fund (for construction activities)
general fund (for processing assessments and receiving and distributing money from the
assessments), capital projects fund (for construction activities), and (a) debt service fund
(for receiving the assessments from the general fund and servicing the debt); (b) agency
fund (for processing the assessments, accounting for and servicing the debt)
capital projects fund
general fund (for transfer of withheld wages), pension trust fund
general fund
internal service fund
general fund
general fund
general fund (for transfer of withheld wages), agency fund
general fund (if museum activities are reported in the general fund), permanent fund
investment trust fund
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Solutions Manual, Chapter 9
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231
E9.3
Property Tax Rate and Revenues
a.
Last year’s property tax revenue was: $7,440,000 = $.93 x ($800,000,000/$100)
b.
Property tax revenue required is $8,200,000 = $9,000,000 - $800,000
$8,200,000/($850,000,000/$100) = $0.965 per $100 of assessed valuation
c.
$0.93 x ($850,000,000/$100) = $7,905,000
E9.4
Computing Available Funds
All dollar amounts in thousands
a.
Funds available for encumbrance consist of:
appropriations - expenditures - outstanding encumbrances
Appropriations are $3,000,000 (= estimated revenue of $3,100,000 – budgetary
surplus of $100,000). Thus,
available funds = $3,000,000 - 2,000,000 - 200,000 = $800,000
The other numerical data given are irrelevant to this calculation.
b.
Yes, the budget appears ripe for cutting. Operating costs average about $200,000 per month [=
(2,000,000 + 200,000)/11]. Yet there is $800,000 remaining to cover operating costs of
$200,000 in the last month of the fiscal year.
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Advanced Accounting, 1st Edition
E9.5
Reconstruct Budget Entry, Compute Fund Balance
The detailed budget may be reconstructed as follows:
Actual
Revenues:
Property taxes
Fines
Intergovernmental
Fees and service charges
Miscellaneous
Total
Expenditures:
Administration
Public safety
Health and environment
Total
Over
(Under) Budget
Budget
$2,975,000
6,000
12,000
500,000
4,000
$3,497,000
$125,000
6,000
0
(75,000)
(1,000)
$ 55,000
$2,850,000
0
12,000
575,000
5,000
$3,442,000
$ 500,000
2,050,000
950,000
$3,500,000
$
$ 501,000
2,056,000
954,000
$3,511,000
1,000
6,000
4,000
$ 11,000
Therefore, the budget entry was:
Estimated revenues
Fund balance-unreserved
3,442,000
69,000
Appropriations
3,511,000
b.
Fund balance, beginning of year
Budget entry effect (planned decrease)
Excess of actual revenues over budgeted revenues
Excess of budgeted expenditures over actual expenditures
Fund balance, end of year
Alternative calculation:
Fund balance, beginning of year
Excess of expenditures over revenues
Fund balance, end of year
Solutions Manual, Chapter 9
$2,100,000
(69,000)
55,000
11,000
$2,097,000
$2,100,000
(3,000)
$2,097,000
©Cambridge Business Publishers, 2010
233
E9.6
Transactions, Closing Entries, and Budgetary Comparison Schedule
All dollar amounts in thousands
a.
Journal entries:
(1)
Estimated revenues
51,000
Appropriations
Taxes receivable
51,000
41,000
Property tax revenues
41,000
(2)
Cash
18,500
Taxes receivable
Cash
18,500
26,500
Taxes receivable
26,500
(3)
Encumbrances
50,300
Fund balance-reserved for
encumbrances
50,300
(4)
Fund balance-reserved for
encumbrances
37,300
Encumbrances
37,300
($50,300 - $13,000 = $37,300)
Expenditures
37,500
Vouchers payable
37,500
(5)
Vouchers payable
44,000
Cash
44,000
(6)
Cash
11,000
Fee and service revenues
©Cambridge Business Publishers, 2010
234
11,000
Advanced Accounting, 1st Edition
b.
Closing entries:
Property tax revenues
Fee and service revenues
41,000
11,000
Fund balance - unreserved
Estimated revenues
1,000
51,000
Appropriations
51,000
Fund balance - unreserved
Expenditures
Encumbrances
500
37,500
13,000
c.
$38,500 = $37,000 + $1,000 + $500
d.
Budgetary Comparison Schedule
For the Year Ended December 31, 2010
VarianceC
Favorable
Budget
Actual
(Unfavorable)
Revenues
$51,000
$52,000
$ 1,000
Expenditures
51,000
37,500
13,500
Change in fund balance (1)
$
0
$14,500
$14,500
(1) Closing entries $1,000 + $500 plus increase in Fund balance—encumbrances $13,000.
E9.7
Property Tax Transactions
a.
Taxes
receivable - current
25,000,000
Allowance for uncollectible
taxes - current
Revenues
To record tax levy and establish allowance for uncollectible taxes.
Cash
Revenues
1,000,000
24,000,000
8,000,000
80,800
Taxes receivable - current
8,080,800
To record collection of taxes prior to due date and reduction of revenues by 1% discount
($8,080,800 = $8,000,000/.99).
Solutions Manual, Chapter 9
©Cambridge Business Publishers, 2010
235
Cash
15,419,200
Taxes receivable - current
To record collection of taxes prior to January 1;
$15,419,200 = $25,000,000 - $8,080,800 - $1,500,000.
15,419,200
Taxes
receivable - delinquent
1,500,000
Taxes receivable - current
To reclassify taxes declared delinquent on January 1.
1,500,000
Allow. for uncollectible
taxes - current
Revenues
1,000,000
500,000
Allow. for uncollectible
taxes - delinquent
To fully reserve delinquent taxes.
1,500,000
Cash
Allow. for uncollectible
taxes - delinquent
600,000
600,000
Taxes
Receivable - delinquent
Revenues
To record collection of delinquent taxes subsequent to January 1.
Expenditures
600,000
600,000
20,000,000
Cash
To record cash expenditures for the year.
b.
20,000,000
Balance sheet accounts
Cash ($930,000 + $8,000,000 + $15,419,200 + $600,000 - $20,000,000)
$ 4,949,200
Taxes receivable - delinquent ($1,500,000 - $600,000)
$
900,000
Allowance for uncollectible taxes -delinquent ($1,500,000 - $600,000)
$
900,000
Fund balance:
Actual revenues ($24,000,000 - $80,800 - $500,000 + $600,000)
Estimated revenue
Increase in fund balance
Beginning fund balance (includes the $24,000,000 in the budget entry)
Ending fund balance
$24,019,200
24,000,000
19,200
4,720,000
$ 4,739,200
©Cambridge Business Publishers, 2010
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Advanced Accounting, 1st Edition
E9.8
Inventory Accounting
a.
Consumption method
Expenditures (1)
Inventory (2)
16,350,000
150,000
Cash
Vouchers payable
12,000,000
4,500,000
Purchases method
Expenditures
16,500,000
Cash
Vouchers payable
12,000,000
4,500,000
If inventory is reported under the purchases method, this additional entry is made:
Inventory (2)
150,000
Fund balance--reserved for
inventory (2)
150,000
(1) 16,350,000 = 900,000 + 16,500,000 – 1,050,000
(2) 150,000 = 1,050,000 - 900,000
E9.9
Closing Entries
a.
Revenues
3,501,000
Estimated revenues
Appropriations
3,501,000
3,449,000
Expenditures
3,449,000
b.
Revenues
3,501,000
Estimated revenues
Appropriations
3,449,000
Expenditures
Fund balance - unreserved
Solutions Manual, Chapter 9
3,501,000
3,427,000
22,000
©Cambridge Business Publishers, 2010
237
c.
Revenues
Fund balance - unreserved
3,440,000
61,000
Estimated revenues
Appropriations
3,501,000
3,449,000
Expenditures
Fund balance - unreserved
3,440,000
9,000
d.
Revenues
Fund balance - unreserved
3,495,000
6,000
Estimated revenues
Appropriations
3,501,000
3,449,000
Expenditures
Fund balance - unreserved
E9.10
Carryover Encumbrances
a.
Legal budgetary basis
Fund balance-reserved for
encumbrances
3,443,000
6,000
1,900,000
Fund balance-reserved for
encumbrances - prior year
To reclassify purchase orders outstanding at beginning of 2013.
Expenditures - prior year
encumbrances
1,900,000
1,965,000
Vouchers payable
To record invoices for goods and services ordered in 2012.
Fund Balance - reserved for
encs - prior year
Fund balance - unreserved
1,965,000
1,900,000
65,000
Expenditures - prior year
encumbrances
To close encumbrances carried over from 2012 and related expenditures.
©Cambridge Business Publishers, 2010
238
1,965,000
Advanced Accounting, 1st Edition
b.
GAAP budgetary basis
Encumbrances
1,900,000
Fund balance - unreserved
To restore encumbrances carried over from 2012.
1,900,000
Fund balance - reserved for
encumbrances
1,900,000
Encumbrances
To reverse encumbrances for goods and services received.
1,900,000
Expenditures
1,965,000
Vouchers payable
To record invoices for goods and services.
1,965,000
No special closing entry is required; expenditures are closed in the normal manner.
E9.11
Interfund Transactions
1.
2.
4.
5.
6.
Balance sheet asset: Due from special revenue fund
Statement of revenues, expenditures, and changes in fund balances: Transfers out, listed
under other financing uses
Statement of revenues, expenditures, and changes in fund balances: Transfer in, listed
under other financing sources
Statement of revenues, expenditures, and changes in fund balances: Expenditures
Balance sheet asset: Due from enterprise fund
Balance sheet: reduces Due from special revenue fund
E9.12
Adjusting and Closing Entries, Balance Sheet
3.
a.
Taxes
receivable - delinquent
800,000
Taxes receivable - current
To reclassify receivables outstanding at year end as delinquent.
Allowance for uncollectible
taxes - current
Revenues
Allowance for uncollectible
taxes -delinquent
To fully reserve delinquent taxes.
Solutions Manual, Chapter 9
800,000
450,000
350,000
800,000
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Fund balance—reserved for
supplies
30,000
Supplies
To adjust ending supplies balance.
Fund balance - reserved for
encs -prior year
30,000
450,000
Expenditures - prior year
Fund balance - unreserved
To close prior year encumbrances and related expenditures.
Revenues
420,000
30,000
13,650,000
Estimated revenues
Fund balance - unreserved
13,000,000
650,000
To close revenues.
Appropriations
11,000,000
Expenditures
Encumbrances
Fund balance - unreserved
To close expenditures and encumbrances.
10,500,000
300,000
200,000
b.
Assets
Cash
Taxes receivable-delinquent
(less $800,000 allowance for
uncollectible delinquent
taxes)
Due from other funds
Supplies
Total
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Liabilities and Fund
Balances
$3,500,000 Vouchers payable
0 Due to other funds
120,000 Fund balances:
250,000 Reserved for encumbrances
Reserved for supplies
________ Unreserved
$3,870,000 Total
$1,800,000
210,000
300,000
250,000
1,310,000
$3,870,000
Advanced Accounting, 1st Edition
Graystone General Fund
Analysis of Changes in Fund Balance - Unreserved
(not required)
Fund balance (deficit), beginning (See Note 1)
Excess of revenues over expenditures:
Revenues
$13,650,000
Expenditures (including encumbrances of $300,000)
10,800,000
Fund balance, ending
Note 1: The beginning fund balance is calculated as follows:
Fund balance, beginning (plug)
Add: amount credited in budget entry
($13,000,000 estimated revenues less $11,000,000 appropriations)
Balance per trial balance
Beginning balance implied above
Add: adjustment for excess prior year's encumbrance over expenditure
Beginning balance as adjusted
E9.13
($1,540,000)
2,850,000
$ 1,310,000
$(1,570,000)
2,000,000
430,000
(1,570,000)
30,000
$(1,540,000)
General Fund Capital Asset and Long-Term Debt Transactions
a.
1.
Capital outlay
2,250,000
Cash, vouchers payable
2,250,000
2.
Cash
370,000
Proceeds from sale of capital
assets
370,000
3.
Debt service: interest
Debt service: principal
2,000,000
500,000
Cash
Solutions Manual, Chapter 9
2,500,000
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241
b.
All transactions are reported in the general fund=s Statement of Revenues, Expenditures, and
Changes in Fund Balances.
Capital outlay of $2,250,000 is reported as an expenditure.
Proceeds from sale of capital assets of $370,000 is reported as other financing sources.
Debt service: principal of $500,000 and Debt service: interest of $2,000,000 are reported as
expenditures.
c.
Effect on general fund unreserved fund balance: $(4,380,000) = - $2,250,000 + $370,000 $2,000,000 - $500,000.
E9.14 Identifying the Reporting Entity
1.
The school district is a discretely presented component unit. The city is financially
accountable for the school districtCthe city approves its budget and is legally liable for its
debt. The city also provides significant funding. Financial results are discretely presented
rather than blended because the district has a different governing body.
2.
The housing authority is not a component unit of the city. The city is not financially
accountable for it.
3.
The landfill is a discretely presented component unit. The city is financially accountable
because it controls the board and sets landfill rates.
4.
The sewer district is not a component unit of the city, since the city does not control its
board, and is not financially liable for its activities.
5.
The building authority is a blended component unit of the city. It is a component unit
because the city appoints the board and is liable for the authority=s debts. The building
authority=s financial information is blended with that of the city because the authority
provides services entirely to the city.
©Cambridge Business Publishers, 2010
242
Advanced Accounting, 1st Edition
PROBLEMS
P9.1
Determining the Reporting Entity
1.
Megalopolis is the primary government. The Convention Authority (CA) should be
included with Megalopolis for financial reporting purposes. The city appoints the CA's
governing board and, even though it appears that the city will not be subsidizing the CA,
bonds issued by the CA and backed (guaranteed) by the city impose a financial burden on
the city. Megalopolis is financially accountable to its constituents for the activities of the
CA.
2.
Megalopolis remains the primary government. However, the CA now appears to be a
separate financial reporting entity. Even though the city appoints the governing board,
the activities of the CA are essentially independent of the city. The CA may levy its own
sales tax and issue its own bonds. The bonds are not backed by the city and, presumably,
will be repaid with the CA's revenue. Council has no authority to approve or disapprove
the CA's plans and is neither financially impacted by nor financially accountable for the
CA's activities.
3.
Gigantic County is the primary government. Each volunteer fire department is a separate
not-for-profit financial reporting entity, not a component of the Gigantic county reporting
entity. The county has no control over the fire departments and contracts for their
services voluntarily. County expenditures for the capital equipment become analogous to
the contractual expenditures for fire-fighting services.
4.
The City of Winitville is the primary government. The Winitville Board of Education is
included with the city for financial reporting purposes. Separate election of school board
members is more than offset by the city's influence over the Board's ability to spend,
through its annual appropriation. Moreover, because the city provides the funding for the
Board of Education, the Board is fiscally dependent upon the city. In effect, the city is
accountable to taxpayers and creditors for the school board's operations.
5.
The State of Michigan is the primary government. The Great Lakes Protection Fund
(GLPF) is a separate joint venture not included with the state for financial reporting
purposes. Although Michigan is represented on the Board of the GLPF, the GLPF has its
own Articles of Incorporation and Michigan does not have control over decisions made.
The GLPF is also not fiscally dependent on the State of Michigan.
6.
The State of Georgia is the primary government. The Georgia Public
Telecommunications Commission is included as a component unit in the State financial
reports. The State has control over the Commission's ability to spend, and the
Commission is financially accountable to the State.
Solutions Manual, Chapter 9
©Cambridge Business Publishers, 2010
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P9.2
General Fund Entries and Financial Statements
a.
Journal entries for 2011:
Estimated revenues
Fund balance - unreserved
7,450,000
1,650,000
Appropriations
9,100,000
To record 2011 budget. Estimated revenues are ($2,700,000 + $3,500,000 + $1,000,000 +
$250,000) and appropriations are ($6,700,000 + $1,150,000 + $750,000 + $350,000 +
$150,000).
Taxes receivable
2,700,000
Tax revenues
2,700,000
To accrue taxes receivable.
Cash
2,700,000
Taxes Receivable
To record collection of property taxes.
Waste management
expenditures
2,700,000
6,680,000
Cash
To record expenditures for waste management.
Court expenditures
6,680,000
1,120,000
Cash
To record expenditures for court costs.
Cash
1,120,000
400,000
Accounts receivable – waste
management
To record receipt of payment on 2010 waste management bills.
Cash
Accounts receivable –
waste management
400,000
3,390,000
210,000
Waste management revenues
To record revenues from waste management.
Cash
Court fines
To record revenues from court fines.
©Cambridge Business Publishers, 2010
244
3,600,000
920,000
920,000
Advanced Accounting, 1st Edition
Salaries and operating
expenditures
745,000
Cash
To record salaries and operating expenditures.
Investments
745,000
235,000
Interest revenue
To record interest revenue from investments.
Miscellaneous expenditures
235,000
149,000
Cash
To record miscellaneous expenditures.
Supplies expenditures
149,000
340,000
Waste management supplies
To record consumption of supplies inventory.
Closing entries:
Tax revenues
Water revenues
Court fines
Interest revenue
340,000
2,700,000
3,600,000
920,000
235,000
Estimated revenues
Fund balance - unreserved
To close revenues to fund balance.
Appropriations
Waste management
expenditures
Court expenditures
Salaries and operating
expenditures
Miscellaneous expenditures
Supplies expenditures
Fund balance—unreserved
To close expenditures to fund balance.
Solutions Manual, Chapter 9
7,450,000
5,000
9,100,000
6,680,000
1,120,000
745,000
149,000
340,000
66,000
©Cambridge Business Publishers, 2010
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b.
Town of Amherst
General Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balance
For the Year Ended December 31, 2011
Revenues:
Property taxes
Waste management service
Court fines
Interest
$ 2,700,000
3,600,000
920,000
235,000
$ 7,455,000
Expenditures:
Waste management department
Court costs
Salaries and expenditures
Supplies
Miscellaneous
Total expenditures
Excess of revenues over (under) expenditures
Fund balance - January 1, 2011
Fund balance - December 31, 2011
Assets
Cash (1)
Investments
Accounts receivable-waste
management
Waste management supplies
$ 6,680,000
1,120,000
745,000
340,000
149,000
9,034,000
(1,579,000)
10,280,000
$ 8,701,000
Town of Amherst
General Fund
Balance Sheet
December 31, 2011
Liabilities
and fund balance
$2,216,000 Fund balance –unreserved (2)
6,235,000
210,000
40,000
$8,701,000
$8,701,000
________
$8,701,000
(1) $2,216,000 = $3,500,000 + $2,700,000 - $6,680,000 - $1,120,000 + $400,000 + $3,390,000 +
$920,000 - $745,000 - $149,000.
(2) $8,701,000 = $10,280,000 - $1,650,000 + $5,000 + $66,000.
©Cambridge Business Publishers, 2010
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Advanced Accounting, 1st Edition
P9.3
General Fund Adjustments and Financial Statements
(in thousands)
a.
Adjusting and closing entries for the general fund:
(1)
Due from enterprise fund
1,200
Accounts receivable
To reclassify receivable from Golf Course Fund for advance.
1,200
(2a)
Taxes receivable - delinquent
8,000
Taxes receivable - current
To reclassify outstanding taxes as delinquent.
8,000
(2b)
Revenues
8,000
Allowance for uncollectible
taxes - delinquent
To record allowance for uncollectible taxes.
8,000
(3)
Expenditures
36,000
Bonds payable
36,000
To correct recording of retirement of general obligation bonds and payment of interest.
(4)
Supplies inventory
3,900
Expenditures
To record supplies inventory at year end and reduce expenditures accordingly.
3,900
(5)
Encumbrances
4,100
Fund balance - reserved for
encumbrances
4,100
To record encumbering of appropriations for purchase orders outstanding at year end.
(6)
Due from State
8,200
Revenues
To record Town's portion of gasoline taxes collected by State.
Solutions Manual, Chapter 9
8,200
©Cambridge Business Publishers, 2010
247
(7a)
Expenditures
17,000
Town property
To correct recording of purchase of equipment.
17,000
(7b)
Town property
900
Proceeds from sale of capital
assets
To correct recording of sale of equipment.
900
Closing entries:
Appropriations
400,000
Expenditures
Encumbrances
Fund balance—unreserved
To close expenditures and encumbrances;
$393,100 = $344,000 + $36,000 + $17,000 -$3,900.
393,100
4,100
2,800
Revenues
Proceeds from sale of capital
assets
420,200
900
Estimated revenues
Fund balance - unreserved
To close revenues accounts; $420,200 = $420,000 - $8,000 + $8,200.
©Cambridge Business Publishers, 2010
248
390,000
31,100
Advanced Accounting, 1st Edition
b.
Town of Fountain Inn
General Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Year Ended June 30, 2012
Revenues
Expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):
Proceeds from sale of capital assets
Excess of revenues and other financing sources over expenditures and
other financing uses
Fund balances - July 1, 2011
Fund balances - June 30, 2012
$ 420,200
393,100
27,100
900
28,000
13,200
$ 41,200
Note: The beginning total fund balance is $13,200, calculated as follows:
Fund balances, beginning (plug)
Less: Amount debited in budget entry ($400,000 appropriation less
$390,000 estimated revenues)
Amount per trial balance
$ 13,200
$
(10,000)
3,200
Town of Fountain Inn
General Fund
Balance Sheet
June 30, 2012
(in thousands)
Assets
Cash
Taxes receivable - delinquent
Allowance for uncollectible taxes
Due from enterprise fund
Due from State
Supplies inventory
Total assets
Liabilities and fund balances
Tax anticipation notes payable
Fund balances:
Reserved for encumbrances
Unreserved
Total liabilities and fund balances
Solutions Manual, Chapter 9
$ 42,900
$ 8,000
(8,000)
0
1,200
8,200
3,900
$ 56,200
$15,000
4,100
37,100
$ 56,200
©Cambridge Business Publishers, 2010
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P9.4
Reconstructing General Fund Journal Entries
(in thousands)
Cash
35,000
Investments
To record liquidation of investments.
Due from state government
35,000
50,000
Revenues
50,000
To record anticipated state grant.
Cash
100,000
Due from federal
government
To record receipt of grant from federal government.
Fund balance - reserved for
encumbrances
100,000
7,000
Fund balance - reserved for
encumbrances - prior year
To reclassify encumbrances from prior year.
Expenditures - prior year
encumbrances
7,000
6,500
Vouchers payable
To record expenditures for prior year's encumbrances.
Expenditures
6,500
86,500
Vouchers payable
86,500
To record expenditures.
Computation of expenditures:
Fund balance decrease ($87,000 - $123,000)
Decrease from budget entry
Increase from prior year's encumbrances
Revenues less than budgeted
Expenditures less than appropriations (plug)
Fund balance decrease
Appropriations
Excess of appropriations over expenditures
Expenditures
©Cambridge Business Publishers, 2010
250
$ (36,000)
(33,000)
500
(10,000)
6,500
(36,000)
93,000
(6,500)
$ 86,500
Advanced Accounting, 1st Edition
Vouchers payable
106,000
Cash
To record payment of vouchers;
$106,000 = $40,000 + $6,500 + $86,500 - $27,000.
106,000
Revenues
Fund balance-unreserved
50,000
10,000
Estimated revenues
60,000
To close revenues.
Appropriations
93,000
Expenditures
Fund balance - unreserved
86,500
6,500
To close expenditures.
Fund balance - reserved for
encumbrances -prior year
7,000
Expenditures - prior year
encumbrances
Fund balance - unreserved
To close prior year encumbrance accounts.
6,500
500
P9.5
General Fund—Corrections, Adjustments, and Financial Statements
a.
Reclassification and adjusting entries for general fund (in thousands):
(1)
Due from Water Utility Fund
1,500
Accounts receivable
To reclassify receivable from water utility fund.
1,500
(2a)
Taxes receivable—delinquent
30,000
Taxes receivable - current
To reclassify current taxes now considered delinquent.
(2b)
Revenues
30,000
24,000
Allow. for uncollectible
taxes—delinquent
To establish an allowance account for taxes estimated to be uncollectible.
Solutions Manual, Chapter 9
24,000
©Cambridge Business Publishers, 2010
251
(3)
Expenditures
52,000
Bonds payable
52,000
To correct recording of retirement of general obligation bonds and payment of interest.
(4)
Supplies inventory
44,000
Fund balance- reserved for
inventory
44,000
To record supplies inventory at June 30, 2010: Inventory on hand at June 30, 2010
= $128,000 - $84,000 = $44,000.
(5a)
Expenditures - prior year
encumbrances
11,200
Expenditures
11,200
To record purchase orders outstanding at June 30, 2009, and charged to expenditures in the
following year.
(5b)
Fund balance - unreserved
11,200
Fund balance - reserved for
encumbrances - prior year
To adjust fund balance at beginning of year.
11,200
(5c)
Encumbrances
17,500
Fund balance - reserved for
encumbrances
To record encumbrances for purchase orders at June 30, 2010.
17,500
(6)
Due from State Revenue Dept.
34,000
Revenues
To record Town's portion of state tax due from State.
34,000
(7)
Expenditures
90,000
General property
To correct recording of purchase of equipment.
General property
Proceeds from sale of
capital assets
To correct recording of sale of equipment.
©Cambridge Business Publishers, 2010
252
90,000
4,600
4,600
Advanced Accounting, 1st Edition
Closing entries:
Appropriations
Fund balance - unreserved
400,000
130,300
Expenditures
Encumbrances
To close expenditures and encumbrances;
$512,800 = $382,000 + $52,000 - $11,200 + $90,000.
512,800
17,500
Revenues
Proceeds from sale of capital
assets
370,000
4,600
Estimated revenues
Fund balance - unreserved
To close revenues and other financing sources;
$370,000 = $360,000 - $24,000 + $34,000.
Fund balance - reserved for
encumbrances- prior year
Expenditures - prior year
encumbrances
To close prior year encumbrance accounts.
320,000
54,600
11,200
11,200
b.
Salleytown
Statement of Revenues, Expenditures, and Changes in Fund Balances
General Fund
For the Year Ended June 30, 2010
Revenues
$ 370,000
Expenditures:
Operating expenditures (1)
$ 370,800
Debt service: principal
40,000
Debt service: interest
12,000
Capital outlay
90,000
512,800
Excess of expenditures over revenues
(142,800)
Other financing sources (uses):
Proceeds from sale of capital assets
4,600
Excess of revenues and other financing sources over
(under) expenditures and other financing uses
(138,200)
196,500
Fund balancesCJuly 1, 2009 (2)
Increase in supplies reserve
44,000
$
102,300
Fund balancesCJune 30, 2010 (3)
Solutions Manual, Chapter 9
©Cambridge Business Publishers, 2010
253
(1)
(2)
(3)
Operating expenditures = total expenditures - debt service payments - capital outlays =
$512,800 - 52,000 - 90,000.
Fund balances—July 1, 2009: the preclosing balance stated in the problem must be
adjusted to back out the effect of the budget entry and remove encumbrances outstanding
at the beginning of the year: $196,500 = $127,700 + $80,000 - $11,200.
Fund Balances—June 30, 2010 = the sum of all reserved and unreserved fund balances;
see Balance Sheet in requirement c.: $102,300 = $17,500 + $44,000 + $40,800
(= $127,700 - $11,200 - $130,300 + $54,600).
c.
Salleytown
Balance Sheet—General Fund
As of June 30, 2010
(in thousands)
Assets
Cash
Short-term investments
Accounts receivable
Due from Water Utility
Due from State
Taxes receivable—delinquent (net of allowance of $24,000)
Supplies
Total assets
Liabilities and fund balances
Tax anticipation notes payable
Fund balances:
Fund balance—reserved for encumbrances
Fund balance—reserved for supplies
Fund balance—unreserved
Total fund balances
Total liabilities and fund balances
©Cambridge Business Publishers, 2010
254
$ 16,800
40,000
10,000
1,500
34,000
6,000
44,000
$152,300
$ 50,000
17,500
44,000
40,800
102,300
$152,300
Advanced Accounting, 1st Edition
P9.6
Comprehensive General Fund Review
Requirement a:
1. D
2. C
3. C
4. C
5. N
Requirement b:
6. D
7. N
8. C
9. C
10. N
Requirement e:
21. N
22. N
23. C
24. D
25. N
P9.7
Requirement c:
11. D
12. C
13. N
14. N
15. N
Requirement f:
26. C
27. N
28. D
29. D
30. C
31. D
32. C
33. N
34. N
35. N
36. N
Requirement d:
16. C
17. D
18. D
19. C
20. N
Requirement g:
37. C
38. D
39. D
40. C
Comprehensive General Fund—Entries and Statements
Journal entries for fiscal 2012 (in thousands):
(1a)
Estimated revenues
Fund balance - unreserved
28,700
1,300
Appropriations
Estimated other financing
uses
29,300
700
To record budget.
(1b)
Taxes receivable - current
30,000
Revenues
Allow. for uncollectible
taxes - current
28,700
1,300
To record tax levy.
Solutions Manual, Chapter 9
©Cambridge Business Publishers, 2010
255
(2)
Cash
28,300
Taxes receivable - current
28,300
To record collection of taxes.
(3a)
Allowance for uncollectible
taxes - current
800
Revenues
300
Taxes receivable - current
500
To increase revenue by the additional $300 (= $4,500 - $4,200) collected on 2011 taxes,
and write off remaining 2011 receivables.
(3b)
Allowance for uncollectible
taxes-current
308
Revenues
308
To correct allowance account. Taxes receivable = $5,000 + $30,000 - $28,300 - $500 =
$6,200. Allowance account = $1,300. Ending balance in allowance account should be 16% x
($6,200) = $992. Adjustment = $308.
(4)
Cash
80
Proceeds from sale of
capital assets
80
To record sale of old desks.
(5)
Expenditures
200
Cash
200
To record purchase of desks.
(6)
Expenditures
300
Vouchers payable
To record expenditures for repairs and cleaning.
300
(7)
Expenditures
27,700
Vouchers payable
27,700
To record expenditures.
©Cambridge Business Publishers, 2010
256
Advanced Accounting, 1st Edition
(8)
Expenditures
400
Inventory
400
To adjust inventory to year end balance of $1,300. Consumption method is inferred because
inventory is reported on the balance sheet, and there is no reserve for inventory.
(9a)
Vouchers payable
30,200
Cash
To record payment of vouchers; $30,200 = $2,200 + $300 + $27,700.
(9b)
Encumbrances
30,200
700
Fund balance - reserved
for encumbrances
700
To record purchase orders.
(10)
Fund balance - reserved for
encumbrances
460
Fund balance-unreserved
460
To cancel 2011 encumbrances.
(11)
Transfer out
700
Cash
700
To record transfer to enterprise fund.
Closing entries at June 30, 2012:
Revenues
Proceeds from sale of capital
assets
29,308
80
Fund balance - unreserved
Estimated revenues
To close revenues and other financing sources;
$29,308 = $28,700 + $300 + $308.
Appropriations
Estimated other financing uses
Expenditures
Encumbrances
Transfer out
To close expenditures and encumbrances;
$28,600 = $200 + $300 + $27,700 + $400.
Solutions Manual, Chapter 9
688
28,700
29,300
700
28,600
700
700
©Cambridge Business Publishers, 2010
257
b.
Pilotsville School District
General Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balances
For the Year Ended June 30, 2012
Revenues
Expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Transfer out
Proceeds from sale of capital assets
Excess of revenues and other financing sources over expenditures and
other financing uses
Fund balances—July 1, 2011
Fund balances—June 30, 2012
* Unreserved + reserved for encumbrances = $6,900 + $460.
$ 29,308
28,600
708
(700)
80
88
7,360*
$ 7,448
Pilotsville School District
General Fund
Balance Sheet
June 20, 2012
(in thousands)
ASSETS
Cash
Taxes receivable-current (net of $992 allowance for uncollectible taxes)
Inventory
Total
LIABILITIES AND FUND BALANCES
Fund balance:
Reserved for encumbrances
Unreserved
Total
©Cambridge Business Publishers, 2010
258
$ 940
5,208
1,300
$7,448
$ 700
6,748
$7,448
Advanced Accounting, 1st Edition
The T-accounts below show computations for ending balances of cash, taxes receivable,
allowance for uncollectible taxes, and fund balance. The numbers are keyed to the journal
entries from requirement a.
Cash
Beginning balance
Ending balance
3,660
(2) 28,300
(4)
80
200 (5)
30,200 (9a)
700 (11)
940
Taxes receivable-current
Beginning balance
Ending balance
5,000
(1b) 30,000
28,300 (2)
500 (3a)
6,200
Allowance for uncollectible taxes-current
Beginning balance
(3a) 800
(3b) 308
Ending balance
800
1,300 (1b)
992
Fund Balance - Unreserved
Beginning balance
(1a) 1,300
Ending balance
6,900
460 (10)
688 (c)
6,748
(Note: c-closing entry)
Solutions Manual, Chapter 9
©Cambridge Business Publishers, 2010
259
P9.8
Employee Compensated Absences
a.
Expenditures for compensated
absences
4,000,000
Cash
4,000,000
No liability for future compensated absence payments is reported.
b.
Compensated absence expense
(1)8,553,000
Cash
Liability for
compensated absences
(1) $8,553,000 = $213,715,000 - $209,162,000 + $4,000,000.
4,000,000
4,553,000
The general fund would report a total liability for compensated absences at fiscal year-end of
$213,715,000.
c.
The general fund balance sheet, prepared using modified accrual accounting, will not reveal any
information concerning the State=s future obligation for compensated absences. Expenditures
are recorded as incurred.
P9.9
a.
General Fund Reporting
Budget and encumbrance entries
Estimated revenues
Estimated other financing sources
Fund balanceCunreserved
8,500,000
500,000
50,000
Appropriations
Estimated other
financing uses
8,800,000
250,000
To record budget entry.
Encumbrances
78,000
Fund balance—
unreserved
To re-establish beginning of year encumbrances.
78,000
Net effect on fund balance—unreserved: $78,000 - $50,000 = $28,000 cr
©Cambridge Business Publishers, 2010
260
Advanced Accounting, 1st Edition
b.
Entries made during 2012 for property taxes (not required):
Property taxes receivable-current
8,600,000
Allow. for uncoll.
taxes--current
Property tax revenues
100,000
8,500,000
To accrue property taxes for 2012.
Allowance for uncollectible
taxes--current
60,000
Property taxes
receivable--current
To write off current property taxes.
Allowance for uncollectible
taxesCdelinquent
60,000
10,000
Property taxes
receivableCdelinquent
To write off delinquent property taxes.
Cash
Allowance for uncollectible
taxesCdelinquent
10,000
15,000
15,000
Property taxes
receivableCdelinquent
Property tax revenues
To record collection of delinquent property taxes.
Cash
Property taxes
receivableCcurrent
To record collection of current property taxes;
$8,420,000 = $8,600,000 - ($100,000 - $40,000) - $120,000.
Solutions Manual, Chapter 9
15,000
15,000
8,420,000
8,420,000
©Cambridge Business Publishers, 2010
261
Property taxes receivable-delinquent
Allowance for uncollectible
taxes--current
Property tax revenues
120,000
40,000
80,000
Allow. for uncoll.
taxes--delinquent
Property taxes
receivable--current
To fully reserve unpaid property taxes and reclassify them as delinquent.
120,000
120,000
Property tax revenues for 2012 = $8,500,000 + $15,000 - $80,000 = $8,435,000.
Cash collected for 2012 = $8,420,000 + $15,000 = $8,435,000.
c.
Zero. Interest is not accrued until the year it will be paid.
d.
Other entries for 2012 (not required):
Cash
500,000
Bond proceeds
500,000
To record issuance of bonds.
Cash
6,000
Proceeds from sale of
capital assets
6,000
To record sale of equipment.
Transfers out
250,000
Cash
To record transfers to capital projects and enterprise funds.
Expenditures
250,000
8,720,000
Cash or vouchers
payable
To record expenditures for the year.
Encumbrances
Fund balanceBreserved
for encumbrances
To record net increase in encumbrances for the year.
©Cambridge Business Publishers, 2010
262
8,720,000
50,000
50,000
Advanced Accounting, 1st Edition
Closing entries for 2012:
Property tax revenues
Bond proceeds
Proceeds from sale of capital
assets
Fund balance--unreserved
8,435,000
500,000
6,000
59,000
Estimated revenues
Estimated other
financing sources
To close revenue and other financing sources accounts.
Appropriations
Estimated other financing uses
Fund balance--unreserved
8,500,000
500,000
8,800,000
250,000
50,000
Expenditures
Transfers out
Encumbrances
To close expenditure, encumbrance, and other financing uses accounts.
8,720,000
250,000
130,000
e.
City of Middletown
Budgetary Comparison Schedule
For the year 2012
Property tax revenues
Expenditures
Excess of revenues over (under)
expenditures
Other financing sources (uses):
Transfers out
Proceeds from sale of capital
assets
Bond proceeds
Total other financing sources
Excess of revenues & other
sources over (under) expenditures
& other uses
Solutions Manual, Chapter 9
Budget
$ 8,500,000
8,800,000
Actual
$8,435,000
8,720,000
VarianceB
Favorable
(Unfavorable)
$ (65,000)
80,000
(300,000)
(285,000)
15,000
(250,000)
(250,000)
---
--500,000
250,000
6,000
500,000
256,000
6,000
--6,000
$ (50,000)
$ (29,000)
$
21,000
©Cambridge Business Publishers, 2010
263
P9.10
General Fund—Entries and Financial Statements
a.
2012 journal entries
Beginning of year:
Encumbrances
6,000
Fund balance--unreserved
To restore beginning of year encumbrances.
Estimated revenues-property taxes
Estimated revenues--licenses
and fines
Estimated revenues--federal
grants
Fund balance--unreserved
6,000
500,000
35,000
100,000
31,000
Appropriations-general government
Appropriations-human services
Estimated other financing uses
250,000
402,000
14,000
To establish budget.
Property taxes receivable-current
500,000
Allowance for uncollectible
taxes--current
Property tax revenues
50,000
450,000
To accrue property taxes.
Cash
430,000
Property taxes receivable-current
To record collection of current property taxes.
Cash
Allowance for uncollectible
taxesBdelinquent
Property taxes receivable-delinquent
Property tax revenues
To record collection of delinquent property taxes.
©Cambridge Business Publishers, 2010
264
430,000
60,000
60,000
60,000
60,000
Advanced Accounting, 1st Edition
Allowance for uncollectible
taxes--delinquent
5,000
Property taxes receivable—del.
To write off uncollected delinquent taxes.
Property taxes receivable-delinquent
Allowance for uncollectible
taxes--current
Property tax revenues
5,000
70,000
50,000
20,000
Property taxes receivable-current
Allowance for uncollectible
taxes--delinquent
To reclassify taxes as delinquent and fully reserve delinquent taxes.
Due from federal
government
70,000
70,000
100,000
Revenues--federal grants
100,000
To accrue federal grants.
Cash
95,000
Due from federal government
To record collection of federal grants.
Cash
95,000
34,000
Revenues--licenses and fines
To record collection of license and fine revenues.
Expenditures--general
government
Expenditures--human
services
Inventories ($18,000 $15,000)
Vouchers payable ($20,000 $15,000)
34,000
234,000
400,000
3,000
5,000
Cash
642,000
To record cash expenditures.
Fund balance—res. for encs.
Encumbrances
To record net reduction in encumbrances for the year.
Solutions Manual, Chapter 9
2,000
2,000
©Cambridge Business Publishers, 2010
265
Transfers out
14,000
Cash
To record transfers to debt service fund.
Cash
14,000
2,000
Due from other funds
To record collection of cash advance to enterprise fund.
Due from other funds
2,000
5,000
Cash
To record advance to capital projects fund.
Cash
5,000
25,000
Due to other funds
To record advance from enterprise fund.
25,000
Closing entries:
Property tax revenues
($450,000 + $60,000 $20,000)
Revenues--licenses and fines
Revenues--federal grants
Fund balance--unreserved
490,000
34,000
100,000
11,000
Estimated revenues--property
taxes
Estimated revenues--licenses
and fines
Estimated revenues--federal
grants
500,000
35,000
100,000
To close revenues.
©Cambridge Business Publishers, 2010
266
Advanced Accounting, 1st Edition
Appropriations-general government
Appropriations-Human Services
Estimated other financing
uses
250,000
402,000
14,000
Expenditures--general
government
Expenditures--human services
Transfers out
Encumbrances
Fund balance--unreserved
To close expenditures, encumbrances and transfers.
234,000
400,000
14,000
4,000
14,000
b. (1)
City of Los Alvos
Statement of Revenues, Expenditures, and
Changes in Fund BalancesCGeneral Fund
For the Year Ended December 31, 2012
Revenues
Property taxes
Licenses and fines
Federal grants
Total revenues
Expenditures
General government
Human services
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Transfers out
Total other financing sources (uses)
Excess of revenues and other financing sources over (under)
expenditures and other financing uses
Fund balances--December 31, 2011
Fund balances--December 31, 2012
Solutions Manual, Chapter 9
$ 490,000
34,000
100,000
624,000
234,000
400,000
634,000
(10,000)
(14,000)
(14,000)
(24,000)
32,000
$ 8,000
©Cambridge Business Publishers, 2010
267
(2)
City of Los Alvos
Balance SheetCGeneral Fund
December 31, 2012
Assets
Cash
Property taxes receivable Cdelinquent (net)
Due from other funds
Due from federal government
Inventories
Total assets
Liabilities and fund balances
Vouchers payable
Due to other funds
Total liabilities
Fund balances:
Reserved for encumbrances
Unreserved
Total fund balances
Total liabilities and fund balances
©Cambridge Business Publishers, 2010
268
$ 10,000
0
5,000
15,000
18,000
$ 48,000
$ 15,000
25,000
40,000
4,000
4,000
8,000
$ 48,000
Advanced Accounting, 1st Edition
(3)
City of Los Alvos
Budgetary Comparison ScheduleCGeneral Fund
For the Year Ended December 31, 2012
Budget
Revenues
Property taxes
Licenses and fines
Federal grants
Total revenues
Expenditures
General government
Human services
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources (uses)
Transfers out
Total other financing sources (uses)
Excess of revenues and other
financing sources over (under)
expenditures and other financing
uses
Fund balanceCDecember 31, 2011
Fund balanceCDecember 31, 2012
Actual
Variance-Favorable
(Unfavorable)
$ 500,000
35,000
100,000
635,000
$ 490,000
34,000
100,000
624,000
$ (10,000)
( 1,000)
-(11,000)
250,000
402,000
652,000
234,000
400,000
634,000
16,000
2,000
18,000
(17,000)
(10,000)
7,000
14,000
(14,000)
14,000
(14,000)
---
(31,000)
32,000
$
1,000
(24,000)
32,000
$ 8,000
7,000
-7,000
$
P9.11 General Fund—Budget and Closing Entries, Financial Statements
a.
Estimated revenues
Estimated other financing sources
260,000
2,000
Appropriations
Estimated other
financing uses
Fund
balanceCunreserved
257,000
4,800
200
To establish budget.
Solutions Manual, Chapter 9
©Cambridge Business Publishers, 2010
269
b.
In addition to the budget entry, an entry was made at the beginning of the year to reverse the
encumbrances write-off from 2011:
Encumbrances
800
Fund
balanceCunreserved
800
Therefore the beginning fund balance—unreserved was $23,000 - $200 - $800 = $22,000.
c.
Revenues—property taxes
Revenues—income taxes
Revenues—fines and licenses
Revenues—state grants
Proceeds from sale of capital assets
Fund balance—unreserved
55,000
180,000
18,000
6,000
2,300
700
Estimated revenues
Estimated other
financing sources
To close revenues and other financing sources.
Appropriations
Estimated other financing uses
Encumbrances
Expenditures—general
government
Capital outlay
Transfers out
Debt service—interest
Debt service—principal
Fund balance—
unreserved
To close expenditures and other financing uses.
©Cambridge Business Publishers, 2010
270
260,000
2,000
257,000
4,800
500
130,400
11,000
4,500
35,000
80,000
400
Advanced Accounting, 1st Edition
d.
City of Akron General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended December 31, 2012
(in thousands)
Revenues
Property taxes
$ 55,000
Income taxes
180,000
Fines and licenses
18,000
State grants
6,000
Total revenues
259,000
Expenditures
General government
130,400
Capital outlay
11,000
Debt service
Interest payments
35,000
Principal payments
80,000
Total expenditures
256,400
Excess of revenues over (under) expenditures
2,600
Other financing sources (uses)
Proceeds from sale of capital assets
2,300
Transfers out
(4,500)
Total other financing sources (uses)
(2,200)
Excess of revenues and other financing sources over expenditures and
other financing uses
400
22,800
Fund balancesCDecember 31, 2011 (1)
$ 23,200
Fund balancesCDecember 31, 2012 (2)
(1)
Fund balance—unreserved =
Fund balance—reserved for encumbrances =
(2)
Fund balance—unreserved: $23,000 - $700 + $400 = $22,700
Fund balance—reserved for encumbrances =
500
$23,200
Solutions Manual, Chapter 9
$22,000
800
$22,800
©Cambridge Business Publishers, 2010
271
e.
City of Akron General Fund
Balance Sheet
At December 31, 2012
(in thousands)
Assets
Cash
Investments
Property taxes receivable (net)
Due from other funds
Total assets
Liabilities and fund balances
Vouchers payable
Due to other funds
Total liabilities
Fund balances:
Reserved for encumbrances
Unreserved
Total fund balances
Total liabilities and fund balances
$
5,000
14,000
36,000
9,000
$ 64,000
$ 33,200
7,600
40,800
500
22,700
23,200
$ 64,000
P9.12 General Fund—Entries and Financial Statements
a.
Estimated revenues
Fund balance—unreserved
410,500
9,500
Appropriations
Estimated other
financing uses
370,000
50,000
To establish budget.
Encumbrances
3,000
Fund balance—
unreserved
To reverse outstanding encumbrance closing entry from last year.
State grant receivable
3,000
40,000
State grant revenue
40,000
To accrue state grant.
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Advanced Accounting, 1st Edition
b.
Transactions for the year:
Taxes receivable
300,000
Property tax revenue
Allowance for
uncollectible taxes
285,000
15,000
To record property tax bills.
Cash
280,000
Taxes receivable
280,000
To record property tax collection.
Cash
25,000
State grant receivable
25,000
To record state grant cash received.
Cash
10,000
Property tax revenue
10,000
To record collection of delinquent taxes.
Allowance for uncollectible taxes—
delinquent
22,500
Taxes receivable—
delinquent
To write off uncollected delinquent taxes.
22,500
Transfers out
50,000
Cash
To record transfer to special revenue fund.
50,000
Cash
65,000
Fee and license revenue
To record fee and license revenue received in cash.
Fund balance—reserved for
encumbrances
65,000
3,000
Encumbrances
3,000
Expenditures
3,200
Vouchers payable
To record receipt of inventories on purchase orders sent last year.
Solutions Manual, Chapter 9
3,200
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273
Due from capital projects fund
8,000
Cash
To record advance to capital projects fund.
Cash
8,000
12,000
Due from special
revenue fund
To record collection of loan to special revenue fund.
Expenditures
12,000
45,000
Vouchers payable
To record inventories purchased on account.
Expenditures
45,000
320,000
Vouchers payable
To record other expenditures for the year.
Encumbrances
320,000
4,000
Fund balance—reserved
for encumbrances
To record purchase orders outstanding at year-end.
Vouchers payable
4,000
367,000
Cash
367,000
To record payment of vouchers payable.
Adjusting entries at year-end:
Fund balance—reserved for
inventories
1,500
Inventories
To adjust the inventories balance to current year-end amount.
Property tax revenue
1,500
5,000
Allowance for
uncollectible taxes
To fully reserve uncollected taxes at year-end.
Taxes receivable—delinquent
Allowance for uncollectible taxes
Taxes receivable
Allow. for uncollectible
taxes—delinquent
To reclassify uncollected taxes as delinquent.
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5,000
20,000
20,000
20,000
20,000
Advanced Accounting, 1st Edition
c.
Closing entries:
Property tax revenue
Fee and license revenue
State grant revenue
Fund balance—unreserved
290,000
65,000
40,000
15,500
Estimated revenue
To close revenues against estimated revenues.
410,500
Appropriations
Estimated other financing uses
Fund balance—unreserved
370,000
50,000
2,200
Transfers out
50,000
Expenditures
368,200
Encumbrances
4,000
To close expenditures and other financing uses against appropriations and estimated other
financing uses.
d.
Montana County General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30, 2010
(in thousands)
Revenues:
Property taxes
$ 290,000
Fees and licenses
65,000
State grant
40,000
Total revenues
395,000
Expenditures
(368,200)
Excess of revenues over (under) expenditures
26,800
Other financing sources (uses)
Transfers out
(50,000)
Excess of revenues over (under) expenditures and other financing uses
(23,200)
Fund balances—July 1, 2009 (1)
135,000
Change in fund balance—reserved for inventories
(1,500)
Fund balances—June 30, 2010 (2)
$ 110,300
(1)
Fund balance—reserved for encumbrances
Fund balance—reserved for inventories
Fund balance—unreserved
$
(2)
Fund balance—reserved for encumbrances
Fund balance—reserved for inventories
Fund balance—unreserved
$
Solutions Manual, Chapter 9
3,000
7,500
124,500
$135,000
4,000
6,000
100,300
$110,300
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e.
Montana County General Fund
Balance Sheet
At June 30, 2010
(in thousands)
Assets
Cash
Property taxes receivable (net of $20,000 allowance for
uncollectibles)
State grant receivable
Due from special revenue fund
Due from capital projects fund
Inventories
Total assets
Liabilities and fund balances
Vouchers payable
Fund balances:
Reserved for encumbrances
Reserved for inventories
Unreserved
Total fund balances
Total liabilities and fund balances
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$ 87,000
-15,000
3,000
8,000
6,000
$ 119,000
$
8,700
4,000
6,000
100,300
110,300
$ 119,000
Advanced Accounting, 1st Edition