Question

8tcans acassess #3 100 Chapter 17 - Governmental Entities: Introduction and General Fund Accounting Chapter 17 - Governmental 84. The adjusted trial balance for White River for the fiscal year ended June 30, 20X9, is presented below. Debits Credits Cash $ 51,000 Property Taxes Receivable-Delinquent 20,000 Allowance for Uncollectible Taxes-Delinquent $ 15,000 Inventory of Supplies 2,000 Vouchers Payable 10,000 Due to Internal Service Fund 2,000 Fund Balance-Assigned for Inventories 2,000 Fund Balance-Assigned for Encumbrances 12,000 Fund Balance-Unassigned 6.000 Expenditures 718,000 Transfer Out to Internal Service Fund 40,000 Property Taxes Revenues 685,000 99,000 Fine and License Revenues Estimated Revenues Control 800,000 40,000 Estimated Transfer Out to Internal Service Fund 750,000 Appropriations Control 10,000 Budgetary Fund Balance-Unassigned Totals $ 1,631,000 $ 1,631,000 Required: a. Prepare a statement of revenues, expenditures, and changed in fund balance for White Riv for the year ended June 30, 20X9. Assume there were no supplies or outstanding encumbran at the beginning of the year. b. Prepare a balance sheet for White River at June 30, 20X9.

Answer 1

According to the requirement of the question, we have to prepare Statement of revenues, expenditures, Change in fund balance and Balance Sheet.

Requirement a. Prepare a Statement of Revenues, Expenditures and Change in Fund Balance for White River for the year ended June 30, 20X9. Assume there are no supplies or outstanding encumbrances at the beginning of the year.

Solution:-

WHITE RIVER

Statement of Revenues, Expenditures and Change in Fund Balances

For the Year Ended June 30, 20X9

Revenues:
Property Taxes	$685,000
Fines and Licences	$99,000
Total Revenues (a)	$784,000
Expenditures:
General Government	$718,000
Total Expenditures (b)	$718,000
Excess of Revenues Over Expenditures (a) - (b)	$66,000
Other Financing Uses:
Transfer out to Internal Service Fund	$40,000
Net Change in Fund Balance ($66,000 - $40,000)	$26,000
Fund Balance, July 1 ($2,000 + $12,000 + $6,000)	$20,000
Fund Balance, June 30	$46,000

Requirement b. Prepare a Balance Sheet for White River at June 30, 20X9.

WHITE RIVER

BALANCE SHEET

June 30, 20X9

ASSETS:
Cash		$51,000
Property Taxes Receivables - Delinquent	$20,000
Allowance for Uncollectible Taxes - Delinquent	$(15,000)	$5,000
Inventory of Supplies		$2,000
Total Assets		$58,000
LIABILITIES AND FUND BALANCE
LIABILITIES:
Voucher Payable		$10,000
Due to Internal Service Fund		$2,000
Total Liabilities		$12,000
FUND BALANCE:
Reserved for Encumbrances	$12,000
Reserved for Inventories	$2,000
Unreserved	$32,000
Total Fund balance (already Calculated above)		$46,000
Total Liabilities and Fund Balance		$58,000

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