43.(Preparation of closing entries and fund level financial statements)
Following is a trial balance of City of Peachville’s General Fund at December 31, 2013. Prepare: (a) closing entries; (b) a post-closing trial balance; (c) a statement of revenues, expenditures, and changes in fund balance for the year ended December 31, 2013; and (d) a balance sheet at December 31, 2013.
Property taxes receivable30,000
Due from other funds10,000
Vouchers payable$ 15,000
Unassigned fund balance, January 1, 201325,000
Revenues – property taxes325,000
Revenues – other35,000
Expenditures – salaries280,000
Expenditures – materials20,000
Transfer out to Debt Service Fund40,000
Encumbrances – materials4,000
Budgetary fund balance reserved for encumbrances4,000
Estimated revenues – property taxes325,000
Estimated revenues – other40,000
Appropriations – salaries290,000
Appropriations – materials25,000
Appropriations – transfer to Debt Service Fund40,000
Budgetary fund balance . 10,000
44.(Selected journal entries for several funds)
Prepare entries to record the following selected transactions. Identify the fund affected by the transaction. If a transaction affects more than one fund, prepare entries for all affected funds. Use these abbreviations for the funds:
GF – General FundCPF – Capital Projects Fund
DSF- Debt Service FundPF – Permanent Fund
UEF – Utility Enterprise FundWEF – Water Enterprise Fund
ISF – Internal Service FundLSRF – Library Special Revenue Fund
PSRF – Parks Special Revenue FundPTF – Pension Trust Fund..
a.The city’s utility fund sends an invoice for $10,000 to the General Fund for electricity provided to the city’s agencies, and the General Fund receives the invoice.
b.The General Fund sends its annual $150,000 cash subsidy to the water enterprise fund.
c.To undertake a major capital project, the city issues $950,000 of 10-year serial bonds. The bonds are sold at a discount, so the city realizes bond proceeds of $935,000.
d.A wealthy citizen donates $500,000 to the city. In a formal trust agreement, the citizen requires that the funds be held intact in perpetuity, but that any income from the funds must be used to buy books for the city library. The city invests the $500,000. The fund earns revenue of $23,000 from investing the donation and sends the cash to the Library Special Revenue Fund.
e.To provide retirement benefits for its employees, the city makes a cash payment of $400,000 to its pension fund. The pension fund immediately invests the cash. At year-end, the pension fund investments have a fair value of $420,000.
f.The city receives a $300,000 invoice from a construction contractor. The invoice is approved, after deducting 10 percent retainage.
g.General Fund property taxes receivable at year-end were $100,000. The entity’s allowance for uncollectible property taxes has a zero balance. Year-end adjusting entries are needed: (a) to report the receivables as delinquent; and (b) to record the fact that, of the $100,000, it is expected that $65,000 will be collected in the first 60 days of the next year, $30,000 will trickle in during the rest of the year, and $5,000 will probably need to be written off as uncollectible.
h.The law requires park entrance fees to be used only for park maintenance. Record the budget, which provides for estimated fees of $45,000 and a maintenance appropriation for $40,000. Also, record a budgetary amendment increasing the appropriation to $42,000.
i.The General Fund pays an electric bill for $12,000. It sends an invoice for $1,000 to the fund that provides central printing services to city agencies for that fund’s share of the bill.
j.The General Fund had previously ordered supplies amounting to $24,000. The supplier ships half the order and sends an invoice for $12,500. The supplier also advises the city that it plans to ship the rest of the order in 60 days and will charge the city $12,500 for that portion as well. The city approves the first invoice and agrees to the price on the rest of the order.