Question

1 Award 6.00 points E17-8 Computation of Revenues Reported on the Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund LO 17-7 1. The general fund levied 52,300,000 of property 1axes in July 20X7. The city estimated that 2 percent of the levy would be uncollecible and that $140 000 of the levy woud net be colected until after August 31, 20x8 2 On Ap 30 anv son tho advance of $1.650 aso was rocovod 6. in July 20X7, the general fund borowed $890,000 from a local bank using the property tax levy as collateral The loan was repaid in September 20x7 wth the proceeds from property 1ax colections. 7In Fatrilary IR The general fund recovcd $14,000 In October 20x7 from one of the city's special reenue funds. The amount recalaed represented a relmbursement for an expenditure of tha speclal reverue fund that the chy's general funa pald ollect all peaperty ta Require the geneal tund colieced $90G00 of delnquent property taes that had been classnd s deinqumnd on June 30, 2x7 in the etry to ecord the property tax ley in July 20XS the genetal ta Propare a schcduic shoatng the amount of revenue that should be rcported by Gibert City's goncral fund on the statoment of revonues, expendituros, and changes in fund balance for the yoar onded June 30, 20X3. xrevenues ty July 31, 20X natet that t wu GILBERT CITY Revenue Reported by the General Fund For the Year Ended June 30, 20XD Tatal rovenue renorted

E17-8 Computation of Revenues Reported on the Statement of Revenues,
Expenditures, and Changes in Fund Balance for the General Fund LO 17-7

Gilbert City had the following transactions involving resource inflows into its general fund for the year
ended June 30, 20X8:
1. The general fund levied $2,300,000 of property taxes in July 20X7. The city estimated that 2
percent of the levy would be uncollectible and that $140,000 of the levy would not be collected until
after August 31, 20X8.
2. On April 1, 20X8, the general fund received $55,000 repayment of an advance made to the
internal service fund. Interest on the advance of $1,650 also was received.
3. During the year ended June 30, 20X8, the general fund received $2,100,000 of the property taxes
levied in transaction (1).
4. The general fund received $260,000 in grant monies from the state to be used solely to acquire
computer equipment. During March 20X8, the general fund acquired computer equipment using
$238,000 of the grant. The city has not yet determined the use of the remainder of the grant.
5. During the year ended June 30, 20X8, the general fund received $145,000 from the state as its
portion of the sales tax. At June 30, 20X8, the state owed the general fund an additional $22,000
of sales taxes. The general fund does not expect to have the $22,000 available until early August
20X8.
6. In July 20X7, the general fund borrowed $890,000 from a local bank using the property tax levy as
collateral. The loan was repaid in September 20X7 with the proceeds from property tax collections.
7. In February 20X8, a terminated debt service fund transferred $33,000 to the general fund. The
$33,000 represented excess resources left in the debt service fund after a general long-term debt
obligation had been paid in full.
8. On July 1, 20X7, the general fund estimated that it would receive $70,000 from the sale of liquor
licenses during the fiscal year ended June 30, 20X8. For the year ended June 30, 20X8, $64,000
had been received from liquor license sales.
9. The general fund received $14,000 in October 20X7 from one of the city’s special revenue funds.
The amount received represented a reimbursement for an expenditure of the special revenue fund
that the city’s general fund paid.
10. In July 20X7, the general fund collected $90,000 of delinquent property taxes that had been
classified as delinquent on June 30, 20X7. In the entry to record the property tax levy in July 20X6,
the general fund estimated that it would collect all property tax revenues by July 31, 20X7.

Required:
Prepare a schedule showing the amount of revenue that should be reported by Gilbert City’s general
fund on the statement of revenues, expenditures, and changes in fund balance for the year ended
June 30, 20X8.

Answer 1

Gilbert City

Revenue Reported by the General Fund

For the Year Ended June 30, 20X8

Property tax revenue (2300000-140000-((2300000-140000)*2%))	2116800
Interest revenue on advance	1650
Grant revenue used to acquire computer equipment	238000
Sales tax revenue	145000
Liquor license revenue	64000
Total revenue reported	2565450