Question

$614,400 $614,400 Assigned fund balance consists of outstanding encumbrances. Required Prepare the budget entry that was made at January 1,2020. b. Calculate the balance in fund balance-unassigned on December 31, 2019. Prepare the required closing entries at year-end d. Prepare the general fund statement of revenues, expenditures, and changes in fund balances for 2020. Prepare the general fund balance sheet at December 31, 2020. C. e P10.12 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. LO Credit Debit Cash... Taxes receivable. Allowance for uncollectible taxes. Due from special revenue fund $120,000 22,500 $14,000 15,000 Inventories.. 7,500 Accounts payable. Fund balance-nonspendable. Fund balance-assigned.. Fund balance-unassigned 7,500 7,500 3,000 133,000 Totals $165,000 $165,000 State and Local Governments: Introduction and General Fund Transactions Montana County uses the purchases method for inventories, and the GAAP budgetary basis for encum- brances outstanding at year-end. Assigned fund balance consists of outstanding encumbrances. The begin- ning 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 trans fers out of $50,00o. Accrued the state grants 2. Levied property taxes of $300,000, of which 5 percent are estimated to be uncollectible. Collected $280,000 of these taxes. 3. Received $25,000 in state grants 4. Collected $10,000 in 2019 taxes; wrote off the remainder. 5. Transferred $50,000 to the special revenue fund. 6. Received $65,000 in cash for fees and licenses. 7. Received the inventories connected with purchase orders outstanding The bill was $3,200 8. Paid $8,000 to the capital projects fund, as a temporary loan. 9. Received $12,000 from the special revenue fund as partial repayment of a loan made in fiscal 2019 10. Purchased inventories of $45,000 on account. 11. Made other expenditures of $320,000 during the year. Purchase orders outstanding at year-end total $1,600 12. Total accounts payable paid in fiscal 2020 amounted to $367,000. Included are amounts related to expenditures and inventory purchases. 13. Inventories on hand at year-end total $6,000 14. Of the fiscal 2020 taxes uncollected at year-end, $8,000 are expected to be collected within 60 days. as of the end of fiscal 2019 Required Prepare entries necessary at the beginning of the year to record the budget and make any other neces- sary adjustments or accruals. b. a. Prepare entries necessary to record the events of the year and any year-end adjustments Prepare the necessary closing entries for June 30, 2020. d. C. Present, in good form, the statement of revenues, expenditures and changes in fund balances for Montana County for fiscal 2020. Include a reconciliation of beginning and ending fund balances. Present, in good form, the balance sheet for the general fund of Montana County for June 30, 2020. e. 13 Capital Asset and Debt Transactions: Modified Accrual and Full Accrual Accounting A major difference between modified accrual accounting used for the general fund and full accrual accounting

Answer 1

Account Title & Explanation Debit Credit 40 Estimated Revenues (370500+40000) 41 410500 Fund Balance - unassigned 42 9500 43 Appropriations 370000 Estimated Other Financing Uses 44 50000 (To record establishment of Budget) 45 46 Encumbrances 47 3000 Fund Balance - Unassigned 48 3000 (To reverse outstanding encumbrances closing entry from last year) 49 50 State Grant Receivable 40000 51 40000 52 State Grant Revenue (To accrue state grant) 53 54 b) Transactions for the Year 55 56 Account Title & Explanation Debit Credit 57 2 Taxes Receivable 300000 58 59 Property Tax Revenue 285000 Allowance for Uncollectible Taxes (300000*5%) 60 15000 (To record Property Tax Bill) 61

Cash 280000 63 Taxes Receivable 64 280000 (To record receipt of taxes) 65 66 3 Cash 25000 67 State Grant Receivable 68 25000 (To record State grant received) 69 70 4 Cash 10000 71 Property Tax Revenue (To record collection of Delinquent taxes) 10000 72 73 74 75 Allowance for Uncollectible Taxes Delinquent 22500 Taxes Receivable Delinquent 22500 76 (To write off uncollected delinquent taxes) 77 78 Transfers Out 50000 79 Cash 80 50000 (To record transfer to special revenue fund) 81 82 6 Cash 65000 83 Fee & License Revenue 84 65000 (To record collection of Fee and license) 85 86 8

7 Fund Balance -assigned 87 3000 Encumbrances 88 3000 (To record fund balance assigned) 89 90 Expenditures Accounts Payable 91 3200 92 3200 (To record receipt of inventories) 93 94 8 Due from Capital Projects 95 8000 Cash 96 8000 (To record amount given to Capital projects) 97 98 9 Cash 99 Due from Special Revenue Fund 100 12000 (To record amount received) 101 12000 102 10 Expenditures 103 45000 Accounts Payable 104 45000 (To record purchase of inventories) 105 106 11 Expenditures 320000 107 Accounts Payable 320000 108 (To record other expenditures) 109

Encumbrances 4000 111 Fund Balance Unassigned 112 4000 (To record purchase orders outstanding at year end) 113 114 12 Accounts Payable 367000 115 116 Cash 367000 (To record amount paid) 117 118 Adjusting entries 119 120 13 Fund Balance-nonspendable 1500 121 1500 122 Inventories (To record use of inventories) 123 124 5000 125 14 Property Tax Revenue Allowance for Uncollectible Taxes 5000 126 (To record uncollected taxes at year end) 127 128 Taxes Receivable Delinquent 129 20000 Allowance for Uncollectible Taxes 20000 130 131 Taxes Receivable 20000 Allowance for Uncollectible Taxes Delinquent 20000 132 (To reclassify uncollected taxes as delinquent) 133 134