Problem

The Town of Tyler approved the following general fund budget for the fiscal year July 1, 2...

The Town of Tyler approved the following general fund budget for the fiscal year July 1, 2014, to June 30, 2015:

TOWN OF TYLER GENERAL FUND BUDGET SUMMARY FOR THE YEAR JULY 1, 2014 TO JUNE 30, 2015

Revenue Sources

 

Taxes

$250,000

Licenses and permits

20,000

Intergovernmental revenue

40,000

Charges for services

60,000

Fines and forfeits

15,000

Rents and royalties

10,000

Miscellaneous revenues

5,000

Total budgeted revenues

$400,000

TOWN OF TYLER GENERAL FUND BUDGET SUMMARY FOR THE YEAR JULY 1, 2014 TO JUNE 30, 2015

Expenditures

 

Current services

 

General government

$45,000

Public safety

140,000

Highways and streets

90,000

Sanitation

55,000

Health and welfare

20,000

Recreation

30,000

Capital outlays

15,000

Total appropriations

$395,000

Budgeted increase in fund balance

$5,000

The after-closing trial balance of the Town of Tyler general fund at June 30, 2014, shows the following ledger account balances:

Debits

 

Cash

$31,000

Tax receivable—delinquent

15,000

Accounts receivable

3,000

Supplies inventory

6,000

Total debits

$55,000

Credits

 

Allowances for uncollectible taxes—delinquent

$1,000

Vouchers payable

14,000

Note payable (short-term)

15,000

Fund balance—committed

9,000

Fund balance—nonspendable

6,000

Fund balance—unassigned

10,000

Total credits

$55,000

1. Prepare journal entries to record the budget and each of the following transactions:

a. The treasurer of Tyler sends out property tax bills of $200,000; 1 percent is considered uncollectible.

b. Current property taxes of $176,000 and past-due taxes of $14,000 were collected.

c. A specific property tax bill ($1,000) is determined to be uncollectible.

d. Fees in the amount of $20,000 are collected for hunting licenses.

e. Other revenues in the amount of $200,000 are collected.

f. The payroll for salaries of $20,000 is vouchered for payment.

g. Playground equipment expected to cost $15,000 is ordered.

h. The playground equipment is received and has an actual cost of $14,000.

i. Tyler received equipment that had been ordered in the previous fiscal year. The actual cost was $9,500.

j. Supplies in the amount of $11,000 were ordered. By year-end, only $5,000 worth of these supplies has been received. The consumption method is used.

k. The note payable that was outstanding at June 30, 2014, becomes due and is paid.

l. Various expenditures are paid throughout the year totaling $348,040.

m. Supplies in the amount of $3,000 are on hand at year-end.

n. Assume that uncollected taxes on June 30, 2014, are past due.

o. Closing entries are made.


2. Prepare a budgetary comparison statement for the Tyler general fund.


3. Identify the transactions above that will be reconciling items between the fund financial statements and the government-wide financial statements.

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