Question

Question 1 The Town of Elderville accounts for its revenues and day-to-day operating expenditures in its General Fund. The Town uses encumbrance accounting to keep budgetary control over the appropriation for "other expenditures" Prepare journal entries to record these transactions in the General Fund for the calendar year 2019 1. A long-time employee of the Town of Elderville retires. Per Town policy, the employee is paid $9,800 for accumulated vacation pay. 2. To raise the required $315,000 in property taxes, property owners are billed for a total of $317,000. This will allow $2,000 for estimated uncollectible property taxes and refunds. 3. To provide cash at the start of the year, the Town borrows $100,000 from the Electric Utility Enterprise Fund The borrowing will be repaid in six months. 4. The Town sends a purchase order for $4,000 to a vendor for supplies. 5. The General Fund pays $85,000 to the Debt Service Fund (DSF) to enable the DSF to pay interest and principal on Town debt 6. The vendor in 4, above, delivers the supplies ordered by the Town, and bills the Town for $4,200. The Town accepts delivery and prepares a voucher for the full amount of the bill. The Town uses the purchases method to account for supplies inventory 7. Property owners pay property taxes in the amount of $300,000. 8. The Town repays the $100,000 borrowed in 3, above 9. The voucher in 6, above, is paid. 10. The Town receives $80,000 for sales taxes collected by the state on behalf of the Town 11. Sparrow, a long-time resident, is unable to pay his $3,000 property tax bill in full. He pays $1,000, and the Town writes off the remaining $2,000 as uncollectible. 12. The Town declares all remaining unpaid property taxes to be delinquent. It also notifies delinquent property owners that they owe penalties of $2,000 on the delinquent taxes. 13. The General Fund receives a bill from the Water Utility Fund for $6,000 14. The Town pays personal services in the amount of $253,000 15. The Town is notified by the state that it collected an additional $3,000 in December 2019 sales taxes that it will remit to the Town on January 20, 2020. The Town considers sales taxes collected within 60 days of its fiscal year-end available. $4,000 of property taxes and owes penalties and interest of $400 on delinquent taxes. not yet been paid 16. The Town files a tax lien against one of the delinquent taxpayers (in 12, above). The taxpayer is past due orn 17. The city sold the property (in 16.) at auction for $6,000. The auctioneer charged $300 for his services, which has

Answer 1