Question

The City of Castleton’s General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year:

	Debits				Credits
Cash	$	276,120
Taxes Receivable—Delinquent		183,000
Allowance for Uncollectible Delinquent Taxes					$	21,960
Interest and Penalties Receivable		6,280
Allowance for Uncollectible Interest and Penalties						1,160
Inventory of Supplies		6,100
Vouchers Payable						48,500
Due to Federal Government						29,490
Deferred Inflows of Resources—Unavailable Revenues						166,160
Fund Balance—Nonspendable—Inventory of Supplies						6,100
Fund Balance—Unassigned						198,130
	$	471,500			$	471,500

1. Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020.
2. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts.
3. Prepare a General Fund balance sheet as of June 30, 2020.
4. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2020. Do not prepare the government-wide financial statements.

Required A Required B Required C Required D Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020. (If no for a transaction/event, select "No Journal Entry Required in the first account field.) Credit Transaction Fund / Governmental Activities General Journal Debit 1. The budget for FY 2020 provided for General Fund estimated revenues totaling 53.140,000 and appropriations totaling $3,100,000 General Fund Governmental Activities 2. The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses-General Government in the governmental activities journal). General Fund Governmental Activities

Answer 1

Refer the below images for the above mentioned questions, in a detailed way of solution.

Solution : City of Journal Castleton entries fy 2.20 General Fund; Debits Credits 31 40000 Estimated Revenues Ale or To Appropriations To Budgetary Fond balance 3100000 4000 General Fond Jooc00 Cash ALC or 49.000 expenditures -2020 Ak Dr. 10000 To Tax anticipation notes pagable (computation of Distant & $500000 x 206 x 1/3 year = $10000) 490000 Governmental activities : Cash Ale or Expences-general govt. Alc Dr To Tax Antie pation 10000 Notes payable JODODO 3. General Fund : Gaxes Receivable -current Alcov 2150000 To Allowance for Incollectible 64 500 current taxes To Revenues 2085500 (computations : $43000OOO Assessed valuation & $5 tax rate per I 100 & $2150000 Cross levy ; $21500oo Gross levy yo 3 = $64500 estimated on Collectible).

Governmental Activities : Taxes 2150ooo Recavable 314 corrent ale or To allowance for oncollectible To Revenues corrent takes 64500 2085300 4. General Fond: Encombrances -2020 To Encombrances 20boooo alle or outstanding 3/4 2020 2060.000 s. General 2667840 Cash fund and Governmental Activities : Alc o r To goxes Receivable -corrent To Taxes Receivable - Delinquent To Interest is penalties receitable 1961600 1032 to 3570 106840 General Fund : Deferred inflows of Resources 314 unavailable revenues the Dr To Revenues 106940 6. 3430 General Fond: Interest & penalties To Allowance To Revenues Recavable Ah Dr for oncollectible interste 1029 penalties 2401 1029 Governmental Activities : Interest e penaltis Recevable Ave Dr 3430 To Allowance for oncollectible interest us pendtics To General Revenues - Interest is pinaltes on Delinquent Taxes 2401

Credits Debits General Fond : Budgetary Fund balance Ale or 80000 To estimated Revenues (This entry adjusts the original budgetary increase of $ 40000 in bodgetarg sund balance to a Net decrease of $40000). 80 000 8 General Fond and Govermental activities : Allowance for un collectible - Delinayoent Taxes 12792 Ak or a52 ale or Allowance for on-collectible interest as penaltig To Taxes Receivable 314 Delinquent To Interest y penalties Recevable. 12792 952 219490 General Fund : Expenditures Alc Dr. To Due to federal govt. To Due to state govt. To cash 166400 34400 6,8690 of 19490 Govermental Activities : Expenses - (function details omitted) Ale Dr is due to federal govt. TO Due to state govt. Go cash 166400 34400 618690 10. 62 690 62690 General Fond: Expenditures -2000 Ale or To Due to federal govt. Govermenral Activities : Expenses 34( fonction details omitted) To Due to federal govt. 62690 62690

11. Dubita Credits 947000 947000 General Fund : cash Alc Dr TO Revenues Govermental Activities: cath Ale DV To Revenues -(itemize as general and 947000 947000 program cor) by Source) 12. General Found and Govermental activities : 25850 Due to Due to 34400 Federal goverment Alc or state government Alc br. To Vouchers payable 292980 General Fond : 1988040 Encombrances outstanding 314 2620 Ale Dr go encombrances - 2020 1988040 1987570 Expenditures 314 2020 To vouchers Ale dr payable 19875to Govermental activities : Expenses 3/4 (function To vouchers 19875 details omitted) Alcor payable 1987570 14. 2201660 General Funda Vachers payable All DV то со TO expenditures 3/42020 Governmental Activities : Vouchers poyable Ale Dr 2193636 8030 To cash To Expenses (fonction detail 2201660 219360 8030 omitted)

is. General Fond & Governmental Activities: Debits credits Tax Antiapation Note) payable Ale Dr •50oooo To cash Sooooo 16 General Fund y Governmental Activities: Taxes 189000 Receivable - Delinquent Ale or To Taxes Receivable corrent 89000 64500 Allowance To for oncollectible Allowances for corrent uncollectible Gaxel Alc or Deting, vent tores 64500 General Fund Revenues To 126901 Alc or Deferred inflows of Desources 314 unavailable Revenues 126901 (This adjorts as well as that are for the the net not net property interest as Available". taxes [ 9 189000 - $64500 penalties from entry 6 [$2401) 17- General Fund: Inventory of To Fond 3.000 Supplies Alc pr Balance - Non Spendable- Inventory of supplies 1000 Govermental Activities: No expenses are recorded entry exequired - perpodically.

closing entries June 30 2020 2100 000 3060 000 4oooo General Fund . . Appropriations ale or To estimated Revenues To Budgetary fond balance Revenues ale or To Expenditures -2020 To Fond balance - unassigned 3014840 2871720 143120 Govermental Activities : (Not closed here since the govermental activities general ledger anclodes operating statement transactions related to all governmental fonds, not just those of the general Fond. See chapter 9 for an example of closing the governmental activities temporary accounts -)

City of castleton General Fund Balance Sheet As of June 30, 2020 Assets Cash Taxes Less $468640 Receivable 3/4 Delinquent Allowance for un collectible taxes 314 De linaloent $255938 9173668) al 182270 $188 137 3951 Interest y penalties Receivable Less: Allowance for oncollectible interest ç penaltics Inventory of supples Total Assets 9100 $ 663961 Liabilities y Fund Balances 51271 90 186221 313611 liabilities? Vouchers payable Deferred inflows of Resources - unavoslable Revenues Total leabilities & deferred inflows of Resources Fond balances: Non Spendable - inventory of Supplies hassigned Total fund balances Total liabilities is fond balances $ 9400 $341250 350350 $ 663961

City of castleton General Fond Statement of Revenues Expenditures And in fund balance for the year ended June 30, 2020 Revenues Taxes Interest other y penalties sources on tores $ 206470 3570 947000 3014840 882 180 Expenditures salaries & wages Interest on note other payable TOODO 1979540 Excess of Revenues over expenditures Increase an inventory of supplies Fond balances & July 1, 2019 fond balances June 30, 2020 2871720 143120 3000 204230 $350350 computations: Taxes = [ (3) 2085500 + (5) 103270 - (16) 124500] Interest & penalties on taxes = [(5) 3570] other sources = [(11) 947000 salaries ex wages = [(9) 819490 + (10) 62690] Interest on Noty payable = [(2) 10000] other & [(13) 1987570 - (14) 8030] The Govermental Activities general ledger is not shown here.

City of castleton General Fond General ledger (Not Reapsived) Dr cash H1119 Bal 276120 (2) 490000 (1) 2067840 (1) 947000 6/30/2020 468640 cr (9) 618690 (14) 2193630 Dr Interest la penalties Rec. 7111g Bal. 6280 (es) 3570 (6) 3430 (8) 954 (es) Tooooo 6/30/20o 5188 Bol Bola 468640 Dr Allow for Gaxes Receivable -current 19 2150000 (5) 1961000 4-27(16) 189000 6130/2000-01 (8) 9.52 oncoll interest y penalties ar 711119 Bal 1160 (6) 1029 161382020 1237 ar hopplies ON Allow for uncoll. current taxes 4-27 (16) 64500 4-27(3) 64500 Inventory of 71.119 Bal. 6100 (17) 3000 (130/2020 - Baj. 6/30/2020 9100 30. or Goxes Receivable - De Brquencer 711119 Bal. 183000 (5) 103270 (16) 189000 (8) 12792 Dr Allow-for uncoll. Delenyoent 14xest 711119 Bal 21960 (8) 12792 4-27 (16) 64500 13d2020 255939 6130/2020 73668 Bal.

br Due to Federal Govt. ar. (12) 258580 al 19 Bal 29490 Vouchers payable tr (14) 2201660 till19 Bal 48500 4-27(9) 292980 4-27(13) 1937570 6130/2020 127390 ca) (10) 1617012000 166400 62690 8- Dr Dr Due to state Gove! or Revenues (16) 12690) b. 3014840 G2) 34400 (ca) 34400 (3) 2086500 ) 106840 (6) 2401 (11) 947.000 6130/2020 -O- Bol Expenditures - 2000 er Notes poyable or (2) 10000 (9) 819490 or Gax (15) Anticipation 500 000 (14) 8630 Tea) Sooooo b 2871720 62690 (13) 1987570 6130/2020 -0- 0 or Fond balance - unassigned CV or Deferred inflows of Resoung- onavailable Revenueser (5) 166840 (alilaq Bal 166160 (16) 126901 (6130/2020 186221 lilig Bal b 6/30/2000 Revenues 198130 143120 341050 or or Estimated (1) 3140000 Fund balance - Non Spendable to Inventity if soppled 711119 Bal 6100 (17) 3000 6/30/2000 9200 80000 3060000 ( N Enambrances -2020 er (4) 2060000 (13) 1988040 IN Appropriations. b 3loODDO 16) 3100000 6/30/2020 71960/ BOL

or or Encombrances ols-2020 ar (13) 1988040 (4) 2060000 6/30/2020 H960 Budgetary (1) 20000 Fond balance or 16) 40000 b 40000 20 000 Bal.