Computation of Revenues Reported on the Statement of Revenues, Expenditures, and Changes i...

Computation of Revenues Reported on the Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund

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 $2,000,000 of property taxes in July 20X7. The city estimated that 2 percent of the levy would be uncollectible and that $100,000 of the levy would not be collected until after August 31, 20X8.

2. On April 1, 20X8, the general fund received $50,000 repayment of an advance made to the internal service fund. Interest on the advance of $1,500 also was received.

3. During the year ended June 30, 20X8, the general fund received $1,800,000 of the property taxes levied in transaction (1).

4. The general fund received $250,000 in grant monies from the state to be used solely for the acquisition of computer equipment. During March 20X8, the general fund acquired computer equipment using $235,000 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 $125,000 from the state as its portion of the sales tax. At June 30, 20X8, the state owed the general fund an additional $25,000 of sales taxes. The general fund does not expect to have the $25,000 available until early August 20X8.

6. In July 20X7, the general fund borrowed $800,000 from a local bank using the property tax levy as collateral. The loan was repaid in September 20X7, with the proceeds of property tax collections.

7. In February 20X8, a terminated debt service fund transferred $30,000 to the general fund. The $30,000 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 $75,000 from the sale of liquor licenses during the fiscal year ended June 30, 20X8. For the year ended June 30, 20X8, $66,000 was received from liquor license sales.

9. The general fund received $15,000 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 was paid by the city’s general fund.

10. In July 20X7, the general fund collected $80,000 of delinquent property taxes. These property taxes were 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’s general fund on the statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 20X8.