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Question 2

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14 views3 pages

Question 2

Review

Uploaded by

Gedion Ferede
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© © All Rights Reserved
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# Question 2:-The following transactions occurred during the 2011 fiscal year

for the City of X.

1. The budget prepared for the fiscal year 2011 was as follows:

Estimated revenue:

Tax...........................................$1,943,000

License and permits..................372,000

Intergovernmental revenue.........397,000

Miscellaneous revenue ................62,000

Total revenue ......................$2,774,000

Appropriation:

General government ....................$471,0000

Public safety ..................................886,000

Public works.....................................650,000

Health and welfare ............................600,000

Miscellaneous appropriations...........86,000

Total appropriations..................$2,693,000

budgeted increase in fund balance...........$81,000

2.Encumbrances issued against the appropriations during the year were as follows:

General government ..................................$58,000

Public safety ...............................................250,000

Public works .................................................392,000

Health and welfare .......................................160,000

Miscellaneous appropriations ......................71,000


total...........................................................$931,000

3. The current year’s tax levy of $2,005,000 was recorded; uncollectible were estimated as
$65,000.

4. Tax collections from prior years’ levies totaled $132,000; collections of the current year’s levy
totaled $1,459,000.

5. Personnel costs during the year were charged to the following appropriations in the

amounts indicated

General government .......................................................$411,000

public safety ......................................................................635,000

public works.......................................................................254,000

Health and welfare ...........................................................439,000

miscellaneous appropriation ............................................11,100

Credit to revenue payable ................................................$1,750,100

6. Invoices for all items ordered during the prior year were received and approved for

payment in the amount of $14,470. Encumbrances had been recorded in the prior year for
these items in the amount of $14,000.

7. Invoices were received and approved for payment for items ordered in documents

recorded as encumbrances in Transaction (2) of this problem.

8. Revenue other than taxes collected during the year consisted of licenses and permits,

$373,000; intergovernmental revenue, $400,000; and $66,000 of miscellaneous revenues.

9. Payments on Vouchers Payable totaled $2,505,000.

Additional information follows: Fund Balance account had credit balance of $82,900 as of
December 31, 2010; no entries have been made in the Fund Balance account during 2011

Required

a) Record in general journal form the effect of the above transactions on the General Fund for
the year ended December 31, 2011.
b) Record in general journal form entries to close the budgetary and operating statement
accounts.

c) What would be the balance of Fund Balance as of December 31, 2011

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