Governmental Accounting

Chapter 4: Accounting for Governmental Operating Activities

E 4-3: p. 162:
a)
Needs:
Estimated amount to finance Governmental Activities: $2,470,000
Payment of Current Liabilities 830,000 $3,300,000
Available:
Cash 740,000
Collectible Revenues 1,100,000 1,840,000
Anticipated Finance $1,460,000

b) General Fund:

General Ledger
Date Explanation
Dr. Cr.
2/4/2011 Dr.\ Cash 1,460,000
Cr.\ Tax Anticipation Notes Payable 1,460,000

c) Interest expenditure = $1,460,000 x 5% x 6/12 = $36,500

General Fund:

General Ledger
Date Explanation
Dr. Cr.
1/10/2011 Dr.\ Tax Anticipation Notes Payable 1,460,000
Dr.\ Expenditures – 2011 36,500
Cr.\ Cash 1,496,500

E 4-4: p. 162:

a) Levy = Estimated Revenue ÷ Estimated Collectible Portion = $2,660,000 ÷ 0.98 = $2,714,285

Tax Rate = Required tax levy ÷ Assessed valuation = 2,714,285 ÷ 135,714,300 = 2%

b) General Fund:
General Ledger
Date Explanation
Dr. Cr.
--/--/2011 Dr.\Taxes Receivable—Current 2,714,285
Cr.\Estimated Uncollectible Current Taxes 54,285
Cr.\Revenues 2,660,000

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c) General Fund:
General Ledger
Date Explanation
Dr. Cr.
31/12/2011 Dr.\ Cash 2,540,000
Cr.\ Taxes Receivable – Current 2,540,000
31/12/2011 Dr.\ Taxes Receivable—Delinquent 174,285
Dr.\ Estimated Uncollectible Current Taxes 54,285
Cr.\ Taxes Receivable – Current 174,285
Cr.\ Estimated Uncollectible Delinquent Taxes 54,285
31/12/2011 Dr.\Interest and Penalties Receivable on Taxes 10,457
Cr.\Estimated Uncollectible Interest and Penalties 1,046
Cr.\ Revenues 9,411
Interest on Delinquent Taxes Receivables = $174,285 x 6% = $10,457
Estimated Uncollectible Interest = $10,457 x 10% = $1,046

E 4-5: p. 163:
Change in Inventory Balance = 155,000 – 140,000 = $15,000  Increase
a) Purchase Method:
General Fund:
General Ledger
Date Explanation
Dr. Cr.
31/12/2011 Dr.\Inventory of Supplies 15,000
Cr.\ Reserve for Inventory of Supplies 15,000

b) Consumption Method:
General Fund:
General Ledger
Date Explanation
Dr. Cr.
31/12/2011 Dr.\Inventory of Supplies 15,000
Cr.\ Expenditures - 2011 15,000
31/12/2011 Dr.\ Fund Balance 15,000
Cr.\ Reserve for Inventory Supplies 15,000

E 4-6: p. 163:
General Ledger
Date Explanation
Dr. Cr.
1. Notification of Grant 1/5/2011 Dr.\ Due from State Government 200,000
Cr.\ Deferred Revenue 200,000
2. Receipt of 1st Installment 1/7/2011 Dr.\ Cash 100,000
Cr.\ Due from State Government 100,000
1/7/2011 Dr.\ Deferred Revenue 100,000
Cr.\ Revenue – 2011 100,000
3. Record Expenditure for FY 2011 --/--/2011 Dr.\ Expenditure - 2011 90,000
Cr.\ Cash 90,000

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 4. Receipt of 2st Installment 1/7/2012 Dr.\ Cash 100,000
Cr.\ Due from State Government 100,000
1/7/2012 Dr.\ Deferred Revenue 100,000
Cr.\ Revenue – 2012 100,000

E 4-7: p. 164:
General Ledger
Date Explanation
Dr. Cr.
31/12/201X Dr.\ Appropriations 6,224,000
Dr.\ Estimated other financing uses 2,776,000
Cr.\ Estimated Revenues 7,997,000
Cr.\ Budgetary Fund Balance 1,003,000
31/12/201X Dr.\ Revenues 7,980,000
Dr.\ Fund Balance 982,000
Cr.\ Expenditures-201X 6,192,000
Cr.\ Other financing uses-Interfund transfers out 2,770,000

E 4-8: p. 164:
General Fund Water Utility Fund
General Ledger General Ledger
Date Explanation Date Explanation
Dr. Cr. Dr. Cr.
--/-- Dr.\ Expenditure 100,000 --/-- Dr.\ Due from Other Funds 100,000
Cr.\ Due to Other Funds 100,000 Cr.\ Revenue 100,000

General Fund Municipal Golf Course Fund

General Ledger General Ledger
Date Explanation Date Explanation
Dr. Cr. Dr. Cr.
--/-- Dr.\ Cash 1,000 --/-- Dr.\ Expenditure 1,000
Cr.\ Expenditure 1,000 Cr.\ Cash 1,000

General Fund Central Stores Fund

General Ledger General Ledger
Date Explanation Date Explanation
Dr. Cr. Dr. Cr.
--/-- Dr.\Interfund Loans Receivable-Noncurrent 50,000 --/-- Dr.\ Cash 50,000
Cr.\ Cash 50,000 Cr.\ Interfund Loans Payable-Noncurrent 50,000
Dr.\ Fund Balance 50,000
Cr.\ Reserve for Noncurrent Interfund Loans Receivable 50,000

General Fund Debt Service Fund

General Ledger General Ledger
Date Explanation Date Explanation
Dr. Cr. Dr. Cr.
--/-- Dr.\ Other Financing Uses-Interfund Transfers Out 80,000 --/-- Dr.\ Cash 80,000
Cr.\ Cash 80,000 Cr.\ Other Financing Sources-Interfund Transfers In 80,000

General Fund Capital Projects Fund

General Ledger General Ledger
Date Explanation Date Explanation
Dr. Cr. Dr. Cr.
--/-- Dr.\ Cash 5,000 --/-- Dr.\ Other Financing Uses-Interfund Transfers Out 5,000
Cr.\ Other Financing Sources-Interfund Transfers In 5,000 Cr.\ Cash 5,000

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E 4-9: p. 164:
General Fund
General Ledger Subsidiary
Date Explanation
Dr. Cr. Dr. Cr.
1. 1/1/2011 Dr.\ Estimated Revenue 2,774,000
Cr.\ Appropriations 2,693,000
Cr.\ Budgetary Fund Balance 81,000

Estimated Revenue Ledger:

Taxes
Licenses and Permits 1,943,000
Intergovernment revenue 372,000
Miscellaneous revenues 397,000
62,000
Appropriations Ledger:
General Government 471,000
Public Safety 886,000
Public Works 650,000
Health & Welfare 600,000
Miscellaneous appropriations 86,000
2. -/-/2011 Dr.\ Encumbrances - 2011 931,000
Cr.\ Reserve for Encumbrances - 2011 931,000

Encumbrances Ledger:
General Government 58,000
Public Safety 250,000
Public Works 392,000
Health & Welfare 160,000
Miscellaneous appropriations 71,000
3. -/-/2011 Dr.\Taxes Receivable—Current 2,005,000
Cr.\Estimated Uncollectible Current Taxes 65,000
Cr.\Revenues - 2011 1,940,000

Revenue Ledger:
Taxes 1,940,000
4. -/-/2011 Dr.\ Cash 1,591,000
Cr.\ Taxes Receivable-Current 1,459,000
Cr.\ Taxes Receivable—Delinquent 132,000
5. -/-/2011 Dr.\ Expenditures – 2011 1,750,100
Cr.\ Vouchers Payable 1,750,100

Expenditures Ledger:
General Government 411,000
Public Safety 635,000
Public Works 254,000
Health & Welfare 439,000
Miscellaneous appropriations 11,100
6. 1/1/2011 Dr.\ Encumbrances – 2010 14,000
Dr.\ Fund Balance 14,000

Encumbrances Ledger:
Public Safety – 2010 14,000
-/-/2011 Dr.\ Reserve for Encumbrances – 2010 14,000
Dr.\ Encumbrances – 2010 14,000

Encumbrances Ledger:
Public Safety – 2010 14,000
-/-/2011 Dr.\ Expenditure – 2010 14,000
Dr.\ Expenditure – 2011 470
Cr.\ Vouchers Payable 14,470

Expenditures Ledger:
Public Safety – 2010 14,000
Public Safety – 2011 470

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 General Ledger Subsidiary
Date Explanation
Dr. Cr. Dr. Cr.
7. -/-/2011 Dr.\ Reserve for Encumbrances – 2011 851,200
Cr.\ Encumbrances – 2011 851,200

Encumbrances Ledger:
General Government 52,200
Public Safety 240,900
Public Works 357,000
Health & Welfare 130,100
Miscellaneous appropriations 71,000
-/-/2011 Dr.\ Expenditures – 2011 850,500
Cr.\ Vouchers Payable 850,500

Expenditures Ledger:
General Government 52,700
Public Safety 236,200
Public Works 360,000
Health & Welfare 130,600
Miscellaneous expenditure 71,000
8. -/-/2011 Dr.\ Cash 839,000
Cr.\ Revenues 839,000

Revenues Ledger:
License & Permits 373,000
Intergovernmental Revenue 400,000
Miscellaneous Revenue 66,000
9. -/-/2011 Dr.\ Vouchers Payable 2,505,000
Cr.\ Cash 2,505,000

ncumbrances 2011
Dr. Cr. Open
General Government $ 58,000 $ 52,200 $ 5,800
Public Safety 250,000 240,900 9,100
Public Works 392,000 357,000 35,000
Health & Welfare 160,000 130,100 29,900
Miscellaneous expenditure 71,000 71,000 0
Total $ 931,000 $ 851,200 $ 79,800

Total of Expenditures & Encumbrances:

Actual Open Total
Encumbrance
General Government $ 463,700 $ 5,800 $ 469,500
Public Safety 871,670 9,100 880,770
Public Works 614,000 35,000 649,000
Health and Welfare 569,600 29,900 599,500
Miscellaneous appropriations 82,100 0 82,100
Total Expenditures 2,601,070 $ 79,800 $ 2,680,870

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b)

City of Fayette
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
For the Year Ended 31/12/2011
Budgeted Actual Variance with Budget
Amounts Amounts Over (Under)
Revenues:
Taxes $ 1,943,000 $ 1,940,000 $ (3,000)
Licenses and Permits 372,000 373,000 1,000
Intergovrnmental revenue 397,000 400,000 3,000
Miscellaneous revenues 62,000 66,000 4,000
Total Revenues $ 2,774,000 $ 2,779,000 $ 5,000

Expenditures and Encumbrances:

General Government $ 471,000 $ 469,500 $ (1,500)
Public Safety 886,000 880,770 (5,230)
Public Works 650,000 649,000 (1,000)
Health and Welfare 600,000 599,500 (500)
Miscellaneous appropriations 86,000 82,100 (3,900)
Total Expenditures $ 2,693,000 $ 2,680,870 $ (12,130)

Excess of Revenues over Expenditure 81,000 98,130 17,130

Other Financing Sources (Uses) -- -- --
Increase in Fund Balance for year 81,000 177,930 96,930
Fund Balances, 1/1/2011
Fund Balances, 31/12/2011

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E 4-10: p. 166:
General Ledger
Date Explanation
Dr. Cr.
1. 1/5/2010 Dr.\ Estimated Revenue 3,140,000
Cr.\ Appropriations 3,100,000
Cr.\ Budgetary Fund Balance 40,000
2. -/- Dr.\ Cash 294,000
Dr.\ Expenditures – 2011 6,000
Cr.\ Tax Anticipation Notes Payable 300,000
3. -/- Dr.\Taxes Receivable—Current 2,150,000
Cr.\Estimated Uncollectible Current Taxes 86,000
Cr.\Revenues - 2011 2,064,000
4. -/- Dr.\ Encumbrances – 2011 2,059,000
Cr.\ Reserves for Encumbrances – 2011 2,059,000
5. -/- Dr.\Taxes Receivable—Current 25,000
Cr.\Revenues - 2011 25,000
6. -/- Dr.\ Cash 2,364,840
Cr.\ Taxes Receivable – Current 1,961,000
Cr.\ Taxes Receivable – Delinquent 383,270
Cr.\ Interest and Penalties Receivable 20,570
7. -/- Dr.\Interest and Penalties Receivable on Taxes 38,430
Cr.\Estimated Uncollectible Interest and Penalties 11,529
Cr.\ Revenues - 2011 26,901
8. -/- Dr.\ Budgetary Fund Balance 80,000
Cr.\ Estimated Revenues 80,000
9. -/- Dr.\ Expenditures—2011 819,490
Cr.\ Due to Federal Government 166,400
Cr.\ Due to State Government 34,400
Cr.\ Cash 618,690
10. -/- Dr.\ Expenditures – 2011 62,690
Cr.\ Due to Federal Government 62,690
11. -/- Dr.\ Cash 946,700
Cr.\ Revenues - 2011 946,700
12. 30/4/2011 Dr.\ Due to Federal Government 288,580
Dr.\ Due to State Government 34,400
Cr.\ Vouchers Payable 322,980
13. -/- Dr.\ Reserves for Encumbrances – 2011 1,988,040
Cr.\ Encumbrances – 2011 1,988,040
-/- Dr.\ Expenditures – 2011 1,987,570
Cr.\ Vouchers Payable 1,987,570
14. -/- Dr.\ Vouchers Payable 2,301,660
Cr.\ Expenditures 8,030
Cr.\ Cash 2,293,630
15. -/- Dr.\ Taxes Anticipation Notes Payable 300,000
Cr.\ Cash 300,000
16. -/- Dr.\Taxes Receivable—Delinquent 214,000
Dr.\Estimated Uncollectible Current Taxes 86,000
Cr.\Taxes Receivable—Current 214,000
Cr.\Estimated Uncollectible Delinquent Taxes 86,000
17. 30/4/2011 Dr.\Inventory of Supplies 3,000
Cr.\ Reserve for Inventory of Supplies 3,000
30/4/2011 Dr.\ Appropriation – 2011 3,100,000
Cr.\ Estimated Revenues – 2011 3,060,000
Cr.\ Budgetary Fund Balance 40,000
30/4/2011 Dr.\ Revenues - 2011 3,062,601
Cr.\ Expenditures – 2011 2,867,720
Cr.\ Fund Balance 194,881
30/4/2011 Dr.\ Fund Balance 70,960
Cr.\ Encumbrances - 2011 70,960

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Notes:

2. Taxes anticipation note discount = $300,000 x 6% x (120/360) = $6,000

3. Required Tax Levy = Assessed valuation x Tax Rate = $43,000,000 x 5% = $2,150,000

Estimated uncollectible tax = Tax levy x 4% = $2,150,000 x 4% = $86,000

Revenues = 2,150,000 – 86,000 = $2,064,000

7. Estimated uncollectible Interest and Penalties = 38,430 x 30% = $11,529

Due to Federal Government

Balance 1/5/2010 59,490
Dr.\ Expenditures - 2011 166,400
Dr.\ Expenditures - 2011 62,690
Cr.\ vouchers Payable 288,580 Balance 30/4/2011 288,580

Vouchers Payable
Cr.\ Cash & Expenditure 2,301,660 Balance 1/5/2010 148,500
Dr.\ Due to Federal & State Government 322,980
Dr.\ Expenditures - 2011 1,987,570
Balance 30/4/2011 157,390

Taxes Receivable – Current

Cr.\ Revenues – 2011 2,150,000 Dr.\ Cash 1,961,000
Cr.\ Revenues – 2011 25,000
Balance 30/4/2011 214,000 Dr.\ Taxes Receivable–Delinquent 214,000

Fund Balance
Cr.\ Expenditures – 2011 2,867,720 Balance 1/5/2010 298,130
Cr.\ Encumbrances - 2011 70,960 Dr.\ Revenues - 2011 3,062,601
Balance 30/4/2011 422,051

Cash
Balance 1/5/2010 97,000 Dr.\ Expenditures - 2011 618,690
Cr.\ Tax Anticipation Notes Payable 294,000 Dr.\ Vouchers Payable 2,293,630
Cr.\ Taxes and Interest Receivables 2,364,840 Dr.\ Taxes Anticipation Notes Payable 300,000
Cr.\ Revenues - 2011 946,700

Balance 30/4/2011 490,220

Taxes Receivable – Delinquent

Balance 1/5/2010 583,000 Dr.\ Cash 383,270
Cr.\ Taxes Receivable – Current 214,000

Balance 30/4/2011 413,730

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 Interest & Penalties Receivable
Balance 1/5/2010 26,280 Dr.\ Cash 20,570
Cr.\ Revenues - 2011 38,430

Balance 30/4/2011 44,140

Revenues - 2011
Cr.\ Fund Balance (closing) 3,062,601 Dr.\ Taxes Receivable 2,064,000
Dr.\ Taxes Receivable 25,000
Dr.\ Interest & Penalties Interest 26,901
Dr.\ Revenues from other sources 946,700
Total 3,062,601 Total 3,062,601

Expenditures - 2011
Cr.\ Tax Anticipation Notes 6,000 Dr.\ Vouchers Payable 8,030
Cr.\ Cash , Cr.\ Due to Federal & State 819,490 Dr.\ Fund Balance (Closing) 2,867,720
Cr.\ Due to Federal Government 62,690
Cr.\ Vouchers Payable 1,987,570
Total 2,875,750 Total 2,875,750

Encumbrances - 2011
Cr.\ Reserves for Encumbrances 2,059,000 Dr.\ Reserves for Encumbrances 1,988,040
Dr.\ Fund Balance (Closing) 70,960
Total 2,059,000 Total 2,059,000

City of Ashland’s
General Fund – Post Closing Trial Balance
Account Debits Credits
Cash 490,220
Taxes Receivable – Delinquent 413,730
Estimated uncollectible delinquent taxes 275,000
Interest & Penalties Receivable on Taxes 44,140
Estimated uncollectible interest and penalties 22,689
Inventory of Supplies 19,100
Vouchers Payable 157,390
Reserves for Inventory 19,100
Reserves for Encumbrances 70,960
Fund Balance 422,051
Totals 967,190 967,190

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 City of Ashland’s
General Fund Balance Sheet
As of April 30,2011
Assets
Cash 490,220
Taxes Receivable – Delinquent 413,730
Less: Estimated uncollectible delinquent taxes (275,000) 138,730
Interest and penalties receivable on taxes 44,140
Less: Estimated uncollectible interest and penalties (22,689) 21,451
Inventory of Supplies 19,100
Total Assets 669,501

Liabilities & Fund Balances

Liabilities:
Vouchers payable 157,390
Fund Balances:
Reserved for Encumbrances – 2011 70,960
Reserved for Inventory of Supplies 19,100
Fund Balance 422,051
Total Fund Balance 512,111
Total Liabilities and Fund Balances 669,501

City of Ashland’s
General Fund
Statement of Revenues, Expenditures, and Change in Fund Balance
For the Year Ended April 30,2011
Revenues:
Property Taxes 2,089,000
Interest & Penalties on Delinquent Taxes 26,901
Revenues from other Sources 946,700
Total Revenues 3,062,601

Expenditures – 2011 2,867,720

Excess of Revenues over Expenditures 194,881
Other Financing Sources (Uses) --
Change (Increase) in Fund Balance 194,881
Fund Balances, 1/5/2010 314,230
Fund Balances, 30/4/2011 509,111

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E 4-11: p. 167:

Alex Benton Park Endowment Fund Alex Benton Park Maintenance Fund
General Ledger General Ledger
Date Explanation Date Explanation
Dr. Cr. Dr. Cr.
1. 31/12/2010 Dr.\ Cash 500,000
Cr.\ Revenues-Contributions for Endowment 500,000
2. 31/12/2010 Dr.\ Investment in Bonds 406,300
Dr.\ Accrued Interest Receivables 6,000
Dr.\ Investment in Certificate of Deposits 70,000
Cr.\ Cash 482,300
3. 2/1/2011 Dr.\ Estimated Revenues 13,400
Cr.\ Appropriations 13,000
Cr.\ Budgetary Fund Balance 400
4. 31/3/2011 Dr.\ Cash 700
Cr.\ Revenues – CDs Interest 700
31/3/2011 Dr.\ Other Financing Uses-Interfund Transfers Out 700 31/3/2011 Dr.\ Cash 700
Cr.\ Cash 700 Cr.\ Revenues - 2011 700
5. 1/4/2011 Dr.\ Cash 12,000
Cr.\ Accrued Interest Receivables 6,000
Cr.\ Revenues – Bonds Interest 6,000
1/4/2011 Dr.\ Other Financing Uses-Interfund Transfers Out 6,000 1/4/2011 Dr.\ Cash 6,000
Cr.\ Cash 6,000 Cr.\ Revenues - 2011 6,000
6. 30/6/2011 Dr.\ Cash 700
Cr.\ Revenues – CDs Interest 700
Dr.\ Other Financing Uses-Interfund Transfers Out 700 30/6/2011 Dr.\ Cash 700
Cr.\ Cash 700 Cr.\ Revenues - 2011 700
7. --/--/2011 Dr.\ Expenditures – 2011 12,850
Cr.\ Cash 12,420
Cr.\ Vouchers Payable 430
30/6/2011 Dr.\ Accrued Interest Receivables 6,000
Cr.\ Revenues – Bonds Interest 6,000
30/6/2011 Dr.\ Other Financing Uses – Interfund Transfers Out 6,000 30/6/2011 Dr.\ Due from Other Funds 6,000
Cr.\ Due to Alex Benton Park Maintenance Fund 6,000 Cr.\ Revenues - 2011 6,000
8. 30/6/2011 Dr.\ Cash 103,500
Cr.\ Investment in Bonds 101,575
Cr.\ Fund Balance – Reserved for endowment 425
Cr.\ Accrued Interest Receivables 1,500
30/6/2011 Dr.\ Investments in Stocks 104,000
Cr.\ Cash 104,000

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 Alex Benton Park Endowment Fund Alex Benton Park Maintenance Fund
Date Explanation General Ledger Date Explanation General Ledger
30/6/2011 Dr.\ Investments in Bonds 1,275
Cr.\ Fund Balance– Reserved for endowment 1,275
30/6/2011 Dr.\ Revenues-Contributions for Endowment 500,000 30/6/2011 Dr.\ Appropriations 13,000
(Closing Dr.\ Revenues – CDs Interest 1,400 (Closing Dr.\ Budgetary Fund Balance 400
Entries) Dr.\ Revenues – Bonds Interest 12,000 Entries) Cr.\ Estimated Revenues 13,400
Cr.\ Other Financing Uses-Interfund Transfers Out 13,400
Cr.\ Fund Balance – Reserved for endowment 500,000
30/6/2011 Dr.\ Revenues - 2011 13,400
(Closing Cr.\ Expenditures – 2011 12,850
Entries) Cr.\ Fund Balance 550

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 Town of Benton
Alex Benton Park Endowment Fund Balance Sheet
As of June 30,2011
Assets
Cash 23,200
Accrued Interest Receivable 4,500
Investments in Bonds 306,000
Investment in CDs 70,000
Investments in Stocks 104,000
Total Assets 507,700

Liabilities & Fund Balances

Due to Alex Benton Park Maintenance Fund 6,000
Fund Balance – Reserved for endowment 501,700
Total Liabilities & Fund Balances 507,700

Town of Benton
Alex Benton Park Maintenance Fund Balance Sheet
As of June 30,2011
Assets
Cash 980
Due from Other Funds 6,000
Total Assets 6,980

Liabilities & Fund Balances

Vouchers Payable 430
Fund Balance 6,550
Total Liabilities & Fund Balances 6,980

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 Town of Benton
Alex Benton Park Endowment Fund
Statement of Revenues, Expenditures, and Change in Fund Balance
For the Year Ended June 30,2011
Revenues:
Contributions for Endowment 500,000
CDs Interest 1,400
Bonds Interest 12,000
Total Revenues 513,400
Expenditures – 2011 0
Excess of Revenues over Expenditures 513,400
Other Financing Sources (Uses) (13,400)
Change (Increase) in Fund Balance 500,000
Adjustment to Fair Value 1,700
Fund Balances, 1/7/2010 0
Fund Balances, 30/6/2011 501,700

Town of Benton
Alex Benton Park Maintenance Fund
Statement of Revenues, Expenditures, and Change in Fund Balance
For the Year Ended June 30,2011
Revenues - 2011 19,400
Expenditures – 2011 (12,850)
Excess of Revenues over Expenditures 6,550
Other Financing Sources (Uses)
Change (Increase) in Fund Balance 6,550
Fund Balances, 1/7/2010 0
Fund Balances, 30/6/2011 6,550

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