George Knudsen Comprehensive Final Problem Chapters 9-10 ‘This contains journal entries and statements required for the following funds: General Fund Capital Projects Fund Debt Service Fund Enterprise Fund ‘This also contains government-wide journal entries and financial statements,General Fund Journal Entries Ba: Debit Credit Estimated revenues - property taxes 400,000 Estimated revenues - sales taxes 70,000 Estimated revenues - park admission fees 10,000 ‘Appropriations - police salaries 300,000 Appropriations - police supplies 40,000 Appropriations - park salaries 80,000 Appropriations - transfer out to debt service fund 45,000 Budgetary fund balance 15,000 To record the adopted 2013 budget B2: Debit Credit Encumbrances - police supplies 35,000 Encumbrances - police supplies 4,000 Budgetary fund reserved for encumbrances 39,000 To record two purchase orders, one for $35,000 and the other for $4,000 Ba: Debit Credit Budgetary fund reserved for encumbrances 35,000 Encumbrances 35,000 To reverse the encumbrance for the $35,000 purchase order Ba: Debit Credit Expenditures - police supplies 33,000 Vouchers payable 33,000 To issue voucher payable for supplies that were delivered Ba: Debit Credit Vouchers payable 33,000 cash 33,000 To record payment of the voucher for the supplies ca: Debit Credit Property taxes receivable 404,000 Allowance for uncollectible property taxes 4,000 Revenues - property taxes 400,000 To record $400,000 property tax revenues (with @ $404,000 levy allowing for $4,000 uncollectible) 2 Debit Credit Allowance for uncollectible property taxes 3,000 Property taxes receivable 3,000 To record $3,000 write off for property taxes Paget: Debit cash 370,000 Property taxes receivable To record $370,000 collection of property taxes from citizens ca: Debit Property taxes delinquent 31,000 Property taxes receivable To classify the remaining property taxes that have not been paid as delinquent ca: Debit ‘Allowance for uncallectble property taxes 1,000 Revenues - property taxes To eliminate the allowance for uncollectible taxes as the rest of the taxes should be collected ca: Debit Revenues - property taxes 10,000 Revenues - deferred property taxes ‘To defer the $10,000 of property taxes expected to be collected after the first 60 days of 2014 cs: Debit cash 68,000 Revenues - sales taxes To record $68,000 collection of sales taxes from the state cs: Debit Sales taxes receivable 6,000 Revenues - sales taxes To record $6,000 of sales tax revenue that the state will pay early 2014 that were 2013 collections ce Debit Cash 18,000 Revenues - park admission fees To record $18,000 collection of admission fees throughout the year on Debit Vouchers payable 35,000 cash To record cash payment of the $35,000 outstanding vouchers payable ca: Debit Expenditures - police salaries 290,000 Expenditures - parks salaries 70,000 Cash ‘To record payment of $70,000 in parks salaries and $290,000 in police salaries Credit 370,000 Credit 31,000 Credit 1,000 Credit 10,000 Credit 68,000 Credit 6,000 Credit 18,000 Credit 35,000 Credit 360,000 Page 2Debit Credit 8,000 5,000 co: Expenditures - police salaries Expenditures - parks salaries Salaries payable 13,000 To record salaries expenses that are accrued for 2013; but will be paid in 2014 C10: No entry required for fund-level statements because claim will probably take over 18 months D3: Debit Credit Transfer out to Debt Service Fund 45,000 45,000 Cash ‘To record transfer of $45,000 to Debt Service Fund for first payment on long-term debt Page 3General Fund T-Accounts : Budgetary Accounts Est rev- prop tax Est rev- park admit Est rev- sales tax Budg fund balance “400,000 10,000 70,000 15,000 400,000 10,000 70,000 15,000 Approp - police sal ‘Approp - park sal Approp - police sup Transfer out to DSF 300,000 80,000 “40,000 45,000 300,000 80,000 140,000 ‘45,000 Non-Budgetary Accounts Cash Unassigned fund bal Encum - police supp Budg fund res enc 40,000 33,000 5,000 35,000] 35,000 35,000] 39,000 370,000 35,000 4,000 68,000| 360,000 18,000 35,000 5,000 4,000 4,000) 23,000 Prop tax receivable Allowance unc tax ___Property tax rec deling Sales tax receivable “404,000 3,000 3,000) 4,000 31,000 6,000 370,000 1,000 31,000 - F 31,000 6,000 Vouchers payable Salaries payable 33,000 35,000 13,000 35,000 33,000 13,000 Expend - police sup Expend - police sal Expend - park sal Transf out to DSF 33,000 290,000 70,000 ‘45,000 8,000, 5,000 33,000 298,000 75,000 45,000 Revenues - prop tax Rev - defer prop tax Revenues - sales tax Rev- park admit fees 10,000] 400,000 10,000 68,000 18,000 1,000 6,000 391,000 70,000 74,000 18,000 Page 4Coco City General Fund Pre-closing Trial Balance December 34, 2013 Debits Credits Estimated revenues - property taxes $ 400,000 Estimated revenues - sales taxes 70,000 Estimated revenues - park admissions 10,000 Appropriations - police salaries $ 300,000 Appropriations - parks salaries 80,000 Appropriations - police supplies 40,000 Transfer out to debt service fund 45,000 Budgetary fund balance 15,000 hates 44000 Budgetary fund reserved for encumbrances 4,000 Cash 23,000 Sales tax receivable 6,000 Property taxes receivable - delinquent 31,000 Salaries payable 13,000 Revenues - sales taxes 74,000, Revenues - property taxes 391,000 Revenues - deferred property taxes 10,000 Revenues -park admissions 18,000 Expenditures - police supplies 33,000 Expenditures police salaries 298,000 Expenditures park slares 75,000 Transfer out to Debt Service Fund 45,000 Unassigned fund balance 5,000 5 995000_ Page SCoco city General Fund Budgetary Comparison Schedule Year Ended December 31, 2013, Budgeted Amounts Original Final Actual Variance Budgetary fund balance, beginning $5000 § 5000 $ 5,000 $ - Resource inflows Property taxes 400,000 391,000 (9,000) Sales taxes 74,000 4,000 Park admission fees 18,000 8,000 ‘Amount available for appropriation 488,000 000) Charges to appropriations(outflows) Police salaries 298,000 2,000 Police supplies 37,000 3,000 Park salaries 75,000 5,000 ‘Transfer to Debt Service Fund 45,000 Total charges to appropriations 465,000 455,000 10,000 Budgetary fund balance, end $ 20,000 $ 33,000 Page 6Coco city ‘Appropriations Ledger January 1, 2013 ‘Appropriation Encumbrances Expenditures Avaliable Date __Item cr Dr cr Dr Appropriations Cr Bil Budget "40,000 "40,000 82 Order supplies 35,000 5,000 82 Order supplies 5,000 0 83 Receive supplies 35,000 35,000 B4 Record expenditures 33,000 2,000 Page 7Capital Project Fund Journal Entries pi: Debit Credit cash 500,000 Other financing sources - long-term debt 500,000 To record issuance of $500,000 in bonds, $25,000 semiannual interest due, 10-yr bond, first payment on ba: Debit Credit. Expenditures - capital outlay 500,000 Cash 500,000 To record purchase of police station, expected to have 25 years, ready for use July 1, 2013 Page 8Capital Projects Fund T-Accounts Cash (OFS - long-term debt Exp - capital outlay 500,000 500,000 500,000 500,000 - ‘500,000 500,000 PageCoco City Capital Projects Fund Pre-closing Trial Balance December 31, 2013 Debits Credits Expenditures - capital outlay $500,000 Other funding sources - long term debt $500,000 $500,000 $500,000 Page 10Debt Service Fund Journal Entries pa: Debit Credit cash 45,000 ‘Transfer in from General Fund 45,000 To record $45,000 transfer from the General Fund. Da: Debit Credit Expenditures - bond principal 25,000 Expenditures - bond interest 15,000 Matured bond interest payable 40,000 ‘To record expenditure for the matured part of the debt bs: Debit Credit Matured bond interest payable 40,000 cash 49,000 ‘To record the cash payment for the bond interest that matured Page 11,Debt Service Fund T-Accounts Exp - bond interest Cash Transfer in from GF Exp - bond principal 45,000 40,000 145,000 25,000 15,000 5,000 45,000 25,000 15,000 Matured bond int pay 40,000 ‘40,000 Page 12Coco City Debt Service Fund Pre-closing Trial Balance December 31, 2013 Debits Credits Cash $ 5,000 Transfer in from General Fund $ 45,000 Expenditures - bond principal 25,000 Expenditures - bond interest 15,000 $45,000 $45,000 Page 13,Coco City Statement of Revenues, Expenditures, and Change in Fund Balances Governmental Funds Year Ended December 31, 2013 (in thousands of dollars) Capital Total General__Debt Service Projects _ Government Revenues Property taxes oa esol ee oe tes 391 Sales taxes 74 - 74 Park admissions 18 18 Total revenues 283 5 483 Expenditures a ana Current Public safety: Police supplies 33 - 33 Police salaries 298 - 298 Parks: Park salaries 78 - 75 Debt service: Principal - 25 - 25 Interest : 15 - 15 Capital outlay - : 500 500 Total expenditures 406 0. 500 946 Excess(deficiency) Revenues over Expenditures 7 5007 (463) Other Financing Sources Transfers in : 45 : 45 Transfers out (a5) - (45) Proceeds - bond issuance : 500 500 Total other financing sources (a5) 45 500 500 Net change in fund balance 32 5 - 37 Fund balance, beginning of year 5 - - 5 Fund balance, end of year 37 a2 Page 14Coco City Balance Sheet Governmental Funds December 31, 2013 {in thousands of dollars) Capital Total General__DebtService Projects __ Government ‘Assets Cash and cash equivalents oily 23) Sis eran 28 Receivables - Property taxes - delinquent Sales taxes Total assets Liabilities Salaries payable B - - 3 Total liabilities B : - B Deferred inflows of Resources Deferred property tax revenue Siaenolhts) Seeds 10 Fund Balances Assigned 4 5 - 9 Unassigned 33 : : 33 Total fund balances 37 3 5 a2 Total liabilities, deferred inflows of resources, and fund balances $99 $ Seen 65 Page 15,Enterprise Fund Journal Entries 2: Debit Credit Cash 70,000 Revenues - pool admissions 70,000 To record pool admission fees received through the year Ea: Debit Credit Expenses - pool salaries 8,000 Cash 8,000 To record salaries paid to the lifeguard and clerk. Ea: Debit Credit Bonds payable 40,000 Expenses - interest 24,000 Cash 64,000 To record bond payment $40,000 principal, $24,000 interest (5% per annum, $480,000 outstanding) ES: Debit Credit Expenses - depreciation 30,000 ‘Accumulated depreciation - swimming pool 30,000 To record straight-line depreciation on pool ($600,000 / 20 years) Page 16Enterprise Fund T-Accounts Cash Swimming pool Accumulated dep-pool 5,000 8,000 600,000 90,000 70,000 64,000 30,000 3,000 600,000 120,000 Bonds payable Fund balance Revenues - pool admit 40,000] 480,000 35,000 70,000 ‘440,000 Expenses - depreciation 35,000 Expenses - pool sal 70,000 Expenses - interest 30,000 8,000 24,000 30,000 8,000 24,000 Page 17Coco City Enterprise Fund Pre-closing Trial Balance December 31, 2013 Debits Credits Cash 3 3,000 ‘Swimming pool 600,000, ‘Accumulated depreciation - swimming pool $ 120,000 Bonds payable 440,000 Revenues - pool admissions 70,000 Expenses - pool salaries 8,000 Expenses - interest 24,000 Expenses - depreciation 30,000 Unassigned fund balance 35,000 $665,000 _$ 665,000 Page 18Coco City Enterprise Fund Swimming Pool Fund Statement of Revenues, Expenses, and Changes in Fund Net Position Operating Revenues: For the Year Ended December 31, 2013 (in thousands of dollars) Charges for services, 70 Total revenues s 70 Operating Expenses Current: Poo! salaries 8 Depreciation 30 Total operating expenses 38 Operating profit 32 Non-operating expenses Interest 24 Change in net position 8 Net Position Beginning of Year Net Position End of Year Coco City Enterprise Fund ‘Swimming Pool Fund Statement of Net Position December 31, 2013 {in thousands of dollars) ‘Assets Current assets: cash $ 3 Total current assets s 3 Noncurrent assets: Capital assets, depreciable, net 480 Total noncurrent assets 480 Total assets 283 Liabilities, Noncurrent liabilities Bonds payable 440 Total noncurrent liabilities 440 Total liabilities 420 Net Position Unassigned fund balance 43 Total net position $483 Page 19“The journal entries to convert the government fund financial statements to the governmental activities column are below: a Debit Credit Revenues - deferred property taxes 10,000 Revenues - property taxes 10,000 To record deferred property taxes on accrual basis b Debit Credit Expenses - judgments and claims 4,000 Claims payable 4,000 To record expected liability for case expected to settle in about 18 months c Debit Credit Other financing sources - long-term debt 500,000 Bonds payable 500,000 To record the liability for long-term debt d Debit Credit Buildings 500,000 Expenditures - capital outlay 500,000 To record building as an asset by reducing capital outlay expenditure e Debit Credit Bonds payable 25,000 Expenditures - bond principal 25,000 To reduce the bonds payable by reducing the bond principal expenditure f Debit Credit Depreciation expense 10,000 ‘Accumulated depreciation - buildings 10,000 ‘To record depreciation on police station ($500,000 value to start / 25 years * 6/12 of a year) 8 Debit Credit Interest expense 7,125 Interest payable 7,125 To accrue bond interest ($475,000 principal remaining * 6% per annum * 3/12 of a year) h Debit Credit Transfers in 45,000 Transfers out 45,000 To eliminate transfers in and out from government-wide statements by offsetting them Page 20Worksheet to prepare government-wide financial statements (in thousands of dollars) Ageregated Balances, of Fund Statements Adjustments Adjusted Balances Debit__Credit Debit Credit Debit Credit Cash 2B 28 Property tax rec -deling 31 31 Sales taxes receivable 6 6 Salaries payable B B Deferred prop tax rev wo a 10 - Fund balance, beg of year 5 5 Revenues: Property taxes 391 a 10 401 Sales taxes, 74 a Park admissions 18 38 Expenditures: Public safety 331 331 Parks 5 5 Bond principal 25 e 25 - Bond interest 15 8 7 2 Capital outlay 500 d 500 ‘ Other financing sources: Bond proceeds 500 500 : Transfers in 45h 45 : Transfers out 45 h 45 - Capital assets d 500 500 ‘Accum depr - cap assets 10 10 Claims payable Interest payable Bonds payable e 25 Depreciation expenses 500 475 10 10 Judg/claims expenses b 4 4 1,056 1,056 1,101 1,101 1,007 1,007 Page 21zzeiea S886 S000 3 ess SS 000°0r 000°SE 00'S Sie8S 0008, ‘$2805 uonjsod yau u a8ueyD. o00'sZy za 000'SLe sanuanas |esaua’ [e301 000'rL a 000'bL ‘saxe} Sales, o00'TOr oo0'ror saxey Auadord sanuanas [e102 (serorw) 0008 (server) coves § “servos $ sonnoe aplmquauuluanos /e1OL 0008 0008. = O00'0L 000729 sapmnpe ssauisng eo. 0008 000'8 000°02 00°29 jood Sujwuyms saquanne ssaursng (scr'vev) ac) 00's sevzwy sonyanpe [eUaULUs9N08 JeI0L (ere) Gere) = seve yqep wuay-Buo} uo ysax014 (000'zs) (00's) 00's 00's ued (ooo'sve)$ (ooo'sv) $ —- $ ooo'sve §—$ Ayayes a1aNd sayanne qwawusanos quawusends Arewiud TouATY Say FaaIABS et adAy-ssauisng Jewaunuanog 40 se81249 pesos) ToRISog JN U SeBUPYD pue “SonuBneY (sesuadNa) ION sanuandy WesBOsd ElOe Te soquiassg papuy Jed, OUI 10 y JO USLUBIERS 19 0009Coco City Statement of Net Position December 31, 2013 Governmental Business Activities Activities Total Assets: Current assets cash $s 28,000 $ 3,000 $ 31,000 Property taxes receivable - delinquent 31,000 - 31,000 Sales taxes receivable 6,000 : 6,000 Total current assets 65,000 3,000 68,000 Non-current assets Capital assets 500,000 600,000 1,100,000 Less, accumulated depreciation 10,000 120,000 130,000 Total non-current assets 490,000 480,000 Total assets 555,000 483,000 Liabilities: Current liabilities Accrued interest payable 7,125 - Salaries payable 13,000 : Total current liabilities 20,125 : Non-current liabilities Bonds payable 475,000 440,000 915,000 Claims payable 4,000 : Total non-current liabilities 473,000 240,000, 919,000 Total liabilities 499,125 “40,000 939,125 Net position Invested in capital assets, net related debt 15,000 40,000 55,000 Unrestricted 3,000 43,875 Total net position $ 55,875 $ 43,000 $98,875 Page 23,