Question

Saved Help Chesterfield County had the following transactions. a. A budget is passed for all ongoing activities. Revenue is anticipated to be $934,000 with approved spending of $568,000 and operating transfers out of $312,00o. b. A contract is signed with a construction company to build a new central office building for the government at a cost of $8,100,000. A budget for this project has previously been recorded. c. Bonds are sold for $8,100,000 (face value) to finance construction of the new office building. d. The new building is completed. An invoice for $8,100,000 is received and paid. e. Previously unrestricted cash of $1,520,000 is set aside to begin paying the bonds issued in (c). f. A portion of the bonds comes due and $1,520,000 is paid. Of this total, $90,000 represents interest. The interest had not been previously accrued. g. Citizens' property tax levies are assessed. Total billing for this tax is $840,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90 percent is assumed to be collectible in this period with receipt of an additional 6 percent during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible. h. Cash of $167,000 is received from a toll road. This money is restricted for highway maintenance. i. The county received investments valued at $306,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks. Prepare the entries first for fund financial statements and then for government-wide financial statements. Complete this question by entering your answers in the tabs below. FUND FIN STMT GOVT WIDE FIN STMT Coare ane me

Answer 1

Chesterfield County Journal Enteries Trans. Particulars Debit in $ Credit in $ General Fund Estimated Revenue Control a/c Dr. 934000 To Appropriations Control 568000 To Estimated Other Financing Uses - Operating Transfers 312000 To Budgetary Balance 54000 (There is no entry for government wide financial statement since budgets are not required to be reported) Capital Projects Fund Encumbrance Control a/c Dr. 8100000 To Fund Balance - Reserved for Encumbrances 8100000 (There is no entry for government wide financial statement since commitments are not required to be reported) Capital Projects Fund Cash a/c To Other Financing Sources Control Dr. 8100000 8100000 Governmental Activities Cash a/c Dr. 8100000 To Bonds Payable 8100000 Any transaction that is recorded in a government wide financial statement is categorized as governmental activities since it measures the finances as a whole instead of categorizing funds. d. Capital Projects Fund Fund Balance Reserved for Encumbrances a/c To Encumbrances Control account Dr. 8100000 8100000 8100000 Expenditures Control a/c To Contracts Payable 8100000 8100000 Contracts Payable a/c To Cash 8100000 Governmental Activities Buildings a/c To Cash 8100000 8100000 e. General Fund Other Financing Uses Control a/c To Cash Dr. 1520000 1520000 Debt Service Fund Cash a/c Dr. 1520000 To Other Financing Resources 1520000 (There is no entry for government wide financial statement since this was an inter activity transfer. Remember that inter activities are for transfers within the government.) The payment is still under the executive Control and it is realized that only a portion of the $1520000 is for the bonds and that $90000 is for payment on interest.Calculate the amount of the bonds. Bonds = Total Cash - Interest amount = 1520000 - 90000 = 1430000 Debt Service Fund Expenditures Control - Bonds a/c Expenditures Control - Interest a/c To Cash Dr. Dr. 1430000 90000 1520000 Since government wide financial statements record all activities as a whole, the enteries are written as for profit organization. Governmental Activities Bonds Payable a/c Interest Expense a/c To Cash Dr. Dr. 1430000 90000 1520000 Total Collectible Tax = 90% +6% = 96% It is stated that 90% is assumed to be collected and the city receives a receipt for 6% to be collected in subsequesnt periods. Therefore this 6% can still be used for the current period even though it will not be collected in the current period. Tax Income = 840000 x 96% = 806400 Uncollectible Tax = Total Tax-tax income = 840000 - 806400 = 33600 Dr. 840000 General Fund Property Tax Receivable a/c To Revenues Property Tax To Uncollectible Taxes 806400 33600 Dr. 840000 Governmental Activities Property Taxes Receivable a/c To Revenues Property Tax To Uncollectible Taxes 806400 33600 h. Special Revenue Fund Cash a/c To Revenue control Dr. 167000 167000 Governmental Activities Cash a/c Dr. To Revenue - Reserved for Highway Maintenance 167000 167000 Permanent Fund Investments a/c To Contribution Revenue Dr. 306000 306000 Governmental Activities Investments a/c To Revenue Donations 306000 306000