Question

The following transactions occurred during the 2020 fiscal year for the City of Evergreen. For budgetary purposes, the city reports encumbrances in the Expenditures section of its budgetary comparison schedule for the General Fund but excludes expenditures chargeable to a prior year’s appropriation.

1. The budget prepared for the fiscal year 2020 was as follows:

Estimated Revenues:
Taxes	$	1,943,000
Licenses and permits		372,000
Intergovernmental revenue		397,000
Miscellaneous revenues		62,000
Total estimated revenues		2,774,000
Appropriations:
General government		471,000
Public safety		886,000
Public works		650,000
Health and welfare		600,000
Miscellaneous		86,000
Total appropriations		2,693,000
Budgeted increase in fund balance	$	81,000

2. Encumbrances issued against the appropriations during the year were as follows:

General government	$	58,000
Public safety		250,000
Public works		392,000
Health and welfare		160,000
Miscellaneous		71,000
Total	$	931,000

3. The current year’s tax levy of $2,005,000 was recorded; uncollectibles were estimated as $65,000.

4. Tax collections of the current year’s levy totaled $1,459,000. The City also collected $132,000 in taxes from the prior year’s levy in the first 60 days after year end. (These delinquent collections had been anticipated prior to year-end.)

5. Personnel costs during the year were charged to the following appropriations in the amounts indicated. Encumbrances were not recorded for personnel costs. Because no liabilities currently exist for withholdings, you may ignore any FICA or federal or state income tax withholdings. (Expenditures charged to Miscellaneous should be treated as General Government expenses in the governmental activities general journal at the government-wide level.)

General government	$	411,000
Public safety		635,000
Public works		254,000
Health and welfare		439,000
Miscellaneous		11,100
Credit to Vouchers Payable	$	1,750,100

6. Invoices for all items ordered during the prior year were received and approved for payment in the amount of $14,470. Encumbrances had been recorded in the prior year for these items in the amount of $14,000. The amount chargeable to each year’s appropriations should be charged to the Public Safety appropriation.

7. Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in Transaction (2) of this problem. The following appropriations were affected.

	Actual Liability				Estimated Liability
General government	$	52,700			$	52,200
Public safety		236,200				240,900
Public works		360,000				357,000
Health and welfare		130,600				130,100
Miscellaneous		71,000				71,000
	$	850,500			$	851,200

8. Revenue other than taxes collected during the year consisted of licenses and permits, $373,000; intergovernmental revenue, $400,000; and $66,000 of miscellaneous revenues. For purposes of accounting for these revenues at the government-wide level, the intergovernmental revenues were operating grants and contributions for the Public Safety function. Miscellaneous revenues are not identifiable with any function and, therefore, are recorded as General Revenues at the government-wide level.

9. Payments on Vouchers Payable totaled $2,505,000.

Additional information follows: The General Fund Fund Balance—Unassigned account had a credit balance of $96,900 as of December 31, 2019; no entries have been made in the Fund Balance—Unassigned account during 2020.

b. Prepare a budgetary comparison schedule for the General Fund of the City of Evergreen for the fiscal year ending December 31, 2020. (Input all amounts as positive values.) CITY OF EVERGREEN General Fund Budgetary Comparison Schedule For the Year Ended December 31, 2020 Budget (Original and Final) Actual Variance with Final Budget Over (Under) Revenues: Total Revenues Expenditures (Budget Basis): I Total Expenditures Excess of Revenues Over Expenditures Increase in Encumbrances Outstanding Increase in Fund Balances Fund Balances, 11 Fund Balances, 12/31

Answer 1

Part B

City Of Evergreen General Fund Budgetary Comparison Schedule For The Year Ended December 31, 2020
	Budget (Original And Final)	Actual	Variance With Final Budget Over (Under)
Revenues:
Taxes	1943000	1940000	(3000)
Licenses And Permits	372000	373000	1000
Intergovernmental Revenue	397000	400000	3000
Miscellaneous Revenues	62000	66000	4000
Total Revenues	2774000	2779000	5000
Expenditures (Budget Basis):
General Government	471000	469500	(1500)
Public Safety	886000	880770	(5230)
Public Works	650000	649000	(1000)
Health And Welfare	600000	599500	(500)
Miscellaneous	86000	82100	(3900)
Total Expenditures	2693000	2680870	(12130)
Excess Of Revenues Over expenditures	8100	98130	17130
Increase In Encumbrances outstanding	0	65800	65800
Increase In Fund Balances	81000	163930	82930
Fund Balances, 1/1	96900	96900	0
Fund Balances, 12/31	177900	260830	82930