Question

Following are descriptions of transactions and other financial events for the City of Tetris for the year ending December 2020. Not all transactions have been included here. Only the general fund formally records a budget. No encumbrances were carried over from 2019.

 

Paid salary for police officers	$	21,000
Received government grant to pay ambulance drivers		40,000
Estimated revenues		232,000
Received invoices for rent on equipment used by fire department during last four months of the year		3,000
Paid for newly constructed city hall		1,044,000
Made commitment to acquire ambulance		111,000
Received cash from bonds sold for construction purposes		300,000
Placed order for new sanitation truck		154,000
Paid salary to ambulance drivers—money derived from state government grant given for that purpose		24,000
Paid for supplies for school system		16,000
Made transfer from General Fund to eventually pay off a long-term debt		33,000
Received but did not pay for new ambulance		120,000
Levied property tax receivables for 2020. City officials anticipate that 95% ($190,000) will be collected during the year and 5% will prove to be uncollectible		200,000
Acquired and paid for new school bus		40,000
Received cash from business licenses and parking meters (not previously accrued)		14,000
Approved appropriations		225,000

 

The following questions are independent although each is based on the preceding information. Assume that the government is preparing information for its fund financial statements.

f. What amount of revenue should the city recognize for the period?

g.What are the total expenditures? Assume that 60 percent of the school supplies are used during the year so that 40 percent remain. The City of Tetris uses the consumption method.