Question

Credit General Fund - Entries and Financial Statements Below are the July 1, 2019, balances for the general fund of Montana County. The county's fiscal year ends June 30. Debit Cash $120,000 Taxes receivable 22,500 Allowance for uncollectible taxes $14,000 Due from special revenue fund 15,000 Inventories 7,500 Accounts payable 7,500 Fund balance - nonspendable 7,500 Fund balance - assigned 3,000 Fund balance - unassigned 133.000 Totals $165,000 $165,000 Montana County uses the purchases method for inventories, and the GAAP budgetary basis for encumbrances outstanding at year-end. Assigned fund balance consists of outstanding encumbrances. The beginning balance for taxes receivable are uncollected 2019 taxes. The following events occurred in fiscal 2020: 1. Passed the 2020 budget, consisting of expected revenues from property taxes, fees and licenses of $370,500, expected state grants of $40,000, estimated expenditures of $370,000, and expected transfers out of $50,000. Accrued the state grants. Required a. Prepare entries necessary at the beginning of the year to record the budget and make any other necessary adjustments or accruals. General Fund Journal Description Credit Estimated revenues Debit 0 0 0 0 0 0 0 0 0 Estimated other financing uses To establish budget 0 0 0 0 To reverse outstanding encumbrance closing entry from last year. . 0 0 0 0 To accrue state grant.

Answer 1

Montana County Requirement a Journal Enteries Date Particulars Estimated revenues Fund balance -- unassigned Apporpriations Estimated other financing uses (To establish budget) Debit in $ Credit in $ 410500 9500 370000 50000 Encumbrances 3000 Fund balance -- unassigned 3000 (To reverse outstanding encumbrance closing entry from last year) 40000 State grant receivable State grant revenue (To accrue state grant.) 40000 Requirement b Journal Enteries Date Particulars Taxes receivable Property tax revenue Allowance for uncollectible taxes (To record property tax bills.) Debit in $ Credit in $ 300000 285000 15000 280000 Cash Taxes Receivable (To record property tax bills.) 280000 25000 Cash State grant receivable (To record state grant cash received) 25000 10000 Cash Taxes Receivable (To record collection of fiscal 2019 taxes) 10000 14000 Allowance for uncollectible taxes Taxes Receivable Property tax revenue (To write off uncollected fiscal 2019 taxes) 12500 1500 50000 Transfers out Cash (To record transfer to special revenue fund) 50000 Cash 65000 Fee and license revenue (To record fee and license revenue received in cash.) 65000 3000 Fund balance - assigned Encumbrances 3000 Expenditures 3200 Accounts payable 3200 (To record receipt of inventories on purchase orders sent last year) 8000 Due from capital projects fund Cash (To record advance to capital projects fund) 8000 Cash 12000 Due from special revenue fund (To record collection of loan to special revenue fund.) 12000 45000 Expenditures Accounts payable (To record inventories purchased on account) 45000 320000 Expenditures Accounts payable (To record other expenditures for the year) 320000 Encumbrances 1600 Fund balance - assigned (To record purchase orders outstanding at year-end) 1600 Accounts payable 367000 Cash 367000 (To record payment of accounts payable)

Adjusting Enteries Date Particulars Debit in $ Credit in $ Fund balance - nonspendable 1500 Inventories (To adjust the inventories balance to current year-end amount.) 1500 3000 Allowance for uncollectible taxes Property tax revenue (Property tax revenue) 3000 Requirements Closing Enteries Date Particulars Property tax revenue Fee and license revenue State grant revenue Fund-balance - unassigned Estimated revenue (To close revenues) Debit in $ Credit in $ 289500 65000 40000 16000 410500 50000 Appropriations 370000 Estimated other financing uses 50000 Transfers out Expenditures Encumbrances Fund balance - unassigned (To close expenditures and other financing uses) 368200 1600 200

Requirement d 289500 65000 40000 394500 Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2020 Revenues : Property Taxes Fees and licenses State Grant Total Revenues Expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers Out Excess of revenues over (under) expenditures and other financing uses Fund balances - July 1, 2019 (below) Change in fund balance - nonspendable Fund balance - June 30, 2020 (below) 368200 26300 50000 -23700 143500 -1500 118300 Reconciliation of beginning and ending fund balances 1.7.2019 7500 Fund balance - nonspendable Fund balance - assigned Fund balance - unassigned 3000 30.6.2020 6000 1600 110700 118300 133000 143500 Requiremente 87000 8000 15000 3000 Balance Sheet At June 30, 2020 Assets Cash Property taxes receivable (net allowance for uncollectibles) State grant receivable Due from special revenue fund Due from capital projects fund Inventories Total Assets Liabilities and Fund Balance Accounts Payable Fund Balances: Nonspendable Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balance 8000 6000 127000 8700 6000 1600 110700 118300 127000