(1)
Prepare journal entries for the City of Puddings governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements.
a.A new truck for the sanitation department was ordered at a cost of $94,000.
b.The city print shop did $1,200 worth of work for the school system (but has not yet been paid.
c.An $11 million bond was issued to build a new road.
d.Cash of $140,000 is transferred from the General Fund to provide permanent financing for a municipal swimming pool that will be viewed as an Enterprise Fund.
e.The truck ordered in (a) is received at an actual cost of $96,000. Payment is not made at this time.
f.Cash of $32,000 is transferred from the General Fund to the Capital Projects Fund.
g.A state grant of $30,000 is received that must be spent to promote recycling.
h.The first $5,000 of the state grant received in (g) is appropriately expended.
(2)
The following trial balance is taken from the General Fund of the City of Jennings for the year ending December 31, 2013. Prepare a condensed statement of revenues, expenditures, and other changes in fund balance and also prepare a condensed balance sheet.
Debit Credit
Accounts Payable $ 90,000
Cash $ 30,000
Contracts Payable 90,000
Deferred Revenues 40,000
Due from Capital Projects Funds 60,000
Due to Debt Service Funds 40,000
Expenditures 530,000
Fund BalanceUnassigned 170,000
Investments 410,000
Revenues 760,000
Other Financing SourcesBond Proceeds 300,000
Other Financing SourcesTransfers In 50,000
Other Financing UsesTransfers Out 470,000
Taxes Receivable 220,000
Vouchers Payable 180,000
Totals $1,720,000 $1,720,000
(3)
The following information pertains to the City of Williamson for 2013, its first year of legal existence. For convenience, assume that all transactions are for the General Fund, which has three separate functions: general government, public safety, and health and sanitation.
Receipts:
Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $320,000
Franchise taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,000
Charges for general government services . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Charges for public safety services. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 3,000
Charges for health and sanitation services . . . . . . . . . . . . . . . . . . . . . . 42,000
Issued long-term note payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Receivables at end of year:
Property taxes (90 percent estimated to be collectible) . . . . . . . . . . . . 90,000
Payments:
Salary:
General government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,000
Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,000
Health and sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000
Rent:
General government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 11,000
Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
Health and sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Maintenance:
General government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000
Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Health and sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
Insurance:
General government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000
Public safety ($2,000 still prepaid at end of year) . . . . . . . . . . . . . . . . 11,000
Health and sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
Interest on debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000
Principal payment on debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 120,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Supplies (20 percent still held) (public safety) . . . . . . . . . . . . . . . . . . . 15,000
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Ordered but not received:
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
Due in one month at end of year:
Salaries:
General government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 4,000
Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000
Health and sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000
Compensated absences for general government workers at year-end totaled at $13,000. These amounts will not be taken until late in the year 2014.
The city received a piece of art this year valued at $14,000 that it is using for general government purposes. There are no eligibility requirements. The city chose not to capitalize this property.
The general government uses the building that was acquired and is depreciating it over 10 years using the straight-line method with no salvage value. The city uses the equipment for health and sanitation and depreciates it using the straight-line method over five years with no salvage value.
The investments are valued at $103,000 at the end of the year.
For the equipment that has been ordered but not yet received, the City Council (the highest decision-making body in the government) has voted to honor the commitment when the equipment is received.
a.Prepare a statement of activities and a statement of net assets for governmental activities for
December 31, 2013, and the year then ended.
b.Prepare a statement of revenues, expenditures, and other changes in fund balances and a balance sheet for the General Fund as of December 31, 2013, and the year then ended. Assume that the city applies the consumption method.
