Question

Please do not post an answer for Part 1 (It is only there for reference in Part 2). Please post a solution for Part 2 instead.

Part I. The city council of Gandy, WI. population 301.277, passed its 2020 fiscal year budget (July 1. 2019 to June 30. 2020). Gandy has a high unemployment rate for Wisconsin, as a major manufacturing plant shut down and moved to lower-costing Texas. For fiscal year 2019. Gandy closed the fiscal year with an operating deficit of S590,000. Fund balance-unassigned at June 30, 2019 before applying the operating deficit, was S965,000. Gandy has the following FY 2020 budget adoption information: Estimated Revenues: Property Taxes Fines and Forfeits Charges for Services Miscellaneous Revenues $ 1.214,000 108,000 389.600 119.000 Totals S 1,830,600 Appropriations: Education Public Safety Public Works General Government 839,600 1,425,000 633,700 1,879.000 $ 4.777.300 Totals Estimated Other Financing Sources: Transfers from State of WI Proceeds from bond issue 3,645,300 1,000,000 4,645,300 Other Financing Uses: Transfers to Debt Services Fund $ 2,050,000 Instructions: 1. Prepare the entry to adopt the FY 2020 budget. Ignore subsidiary ledgers 2. After recording the budget in No. 1, can Gandy, WI adopt this budget? Explain. Is this a surplus or deficit budget? Incorporate inter-period equity in your response. No fewer than five (5) sentences and you must include numbers to support your claim. Part II. On October 2, 2019, the Gandy. WI ordered goods and services estimated to cost the following: Education Public Safety Public Works General Government $2,749 8,496 10.213 3,565 1. Prepare the October 2 journal entry in the General Fund (indicate the fiscal year 2020 in your entries similar to the text and digests): On October 13, 2019, S24.784 of the estimated order was received and the entry to record the receipt of the goods was correctly recorded in the General Fund. All orders were received for Education, Public Safety, and General Government. On October 15, 2019, invoices totaling S24,839 were received for the lot of goods ordered and received Education Public Safety Public Works General Govermmen $2,755 8,510 9,981 3,593 2. Prepare the October 13 jounal entry to record the receipt of the goods in the General Fund (show your calculations to receive any points): 3. Prepare the October 15 journal entry to record the actual cost and liability in the General Fund (you must show your calculations to receive any points): 4. In good form, after the October 15th entry is recorded, calculate Available Appropriations for Public Works. Assume no other entries have been recorded since the adoption of the FY 2020 budget:

Answer 1

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