Continuing Problems Ewell Kelsey

Kelsey Ewell - Continuing
Problems
Continuing problem 9.1
Part A: Identification of Funds
1. The General Fund is used for day-to-day operating activities.
2. The Capital Projects Fund is used to acquire or construct major capital assets.
3. The Debt Service Fund is used to accumulate resources to service long-term
debt.
4. The Enterprise Fund is used to operate a municipal swimming pool.
Part B: Budgetary accounting for the General Fund
GENERAL JOURNAL
Dat
e
a.
Account Names
Cash
Debit
40,000
Vouchers payable
35,000
Unassigned fund balance

To record opening account balances.
b.
1.
Credit
5,000
Estimated revenues - property taxes
400,00
0
Estimated revenues - sales taxes
70,000
Estimated revenues - parks admission fees
10,000
Appropriations - police salaries
300,00
0
Appropriations - police supplies
40,000
Appropriations - parks salaries

Estimated other financing uses -transfer to
Debt Service Fund
Budgetary fund balance
80,000
45,000
15,000
To record the adopted budget.
2. Encumbrances - police supplies
39,000
Budgetary fund balance for encumbrances

To record purchase order one for $35,000 and the
other for $4,000.
39,000
3. Budgetary fund balance for encumbrances
35,000
Encumbrances - police supplies

To reverse encumbrances.
35,000
Expenditures - police supplies
33,000
Vouchers payable
To record the invoice for the police supplies.
33,000
4. Vouchers payable
33,000
Cash
To pay liability of police supplies.
33,000
c. T-accounts
Cash
40,000
33,000
Vouchers payable
33,000
Unassigned fund
balance
35,000
5,000
33,000
7,000
Estimated Rev. - property
taxes
400,000
35,000
Estimated Rev. sales taxes
70,000
5,000
Estimated Rev. - parks
admission fees
10,000
400,000
70,000
Appropriations - police
salaries
Appropriations police supplies
Appropriations - parks
salaries
300,000
40,000
80,000
300,000
40,000
80,000
Budgetary fund
balance
Estimated OFU
Encumbrances - police
supplies
45,000
15,000
39,000
45,000
15,000
4,000
Budgetary fund balance for

Encumbrances.
35,000
10,000
35,000
Expenditures - police
supplies
39,000
33,000
4,000
d. Appropriations ledger
33,000
Coco City
General Fund
Appropriations Ledger
January 2013
Salaries
Police
300,000
300,000
Parks
80,000
80,000
Available
Appropriati
on
Cr
Police Supplies
Budget
Appropriati
on
Cr
Encumbrances
Dr
Cr
Encumbrances
Dr
Cr
Expenditur
es
Dr
Available
Appropriati
on
Cr
Appropriati
on
Cr
Expenditur
es
Dr
40,000
40,000
Order 1
35,000
5,000
Order 2
4,000
1,000
Receive order 1
Record
Expenditure
Part C: Other General Fund transactions
35,000
36,000
33,000
3,000
GENERAL JOURNAL
Dat
e
1.
Account Names
Property taxes receivable
Debit
404,00
0
Allowance for uncollectible
4,000
400,00
0
Revenues - property taxes

To record levy of property taxes, net allowance for
uncollectible.
2.
3,000

To write of account as uncollectible.
3.
Cash
3,000
370,00
0
370,00
0

To record receipt of property taxes.
4.
Property taxes receivable - delinquent

To reclassify receivables to delinquent.
Credit
34,000
34,000
7,000

To remove uncollectible accounts.
7,000
16,000
Deferred revenues - property taxes

To record deferred property taxes expected to be
collected after February 2014.
5.
Sales taxes receivable
16,000
74,000
Revenues - sales taxes
68,000
Deferred sales tax revenues

To record receivables for sales taxes and deferred
sales taxes.
Cash
6,000
68,000

To record collection of sales taxes.
6.
Cash
68,000
18,000
Revenues - park admission fees

To record collection of park admission fees.
7.
Vouchers payable
18,000
35,000
Cash
To record payment of liability.
8.
Expenditures - police salaries

Expenditures - parks salaries
Cash
35,000
290,00
0
70,000
360,00
0
9.
8,000
5,000
Accrued salaries
To accrue unpaid salaries due.
10.
13,000
No Journal Entry
Cash
40,000
370,000
68,000
Vouchers payable
33,000
33,000
35,000
35,000
35,000
33,000
Property taxes
receivable
404,000
370,000
34,000
360,000
18,000
68,000
Allowance for
uncollectible
7,000
Revenues property taxes
4,000
3,000
400,000
3,000
16,000
7,000
Deferred revenues property taxes
388,000
Sales taxes
receivable
16,000
74,000
16,000
6,000
68,000
Property taxes
receivable - delinquent
34,000
34,000
68,000
68,000
Deferred sales tax

revenues
Revenues - park
admission fees
Expenditures - police
salaries
6,000
18,000
290,000
8,000
6,000
18,000
298,000
Expenditures - parks
salaries
Accrued salaries
70,000
13,000
5,000
75,000
13,000
Part D: Capital Projects Fund and Debt Service Fund transactions
GENERAL JOURNAL
Da
te
1.
Account Names
Capital Projects
Cash
Other financing sources - bond
proceeds
To record bond principal.
2.
Debit
Credit
500
,000
500,000
Capital Projects
Encumbrances - capital project
encumbrances
To record purchase order.
encumbrances
Encumbrances capital project
500
,000
500,000
500
,000
500,000
To reverse encumbrances.
Expenditures - police station
Cash
To purchase prefabricated police station.
3.
500,000
500,000
General Fund
Transfer out to Debt Service Fund
45
,000
Cash
To record transfer to the Debt Service
Fund.
45,000
Debt Service Fund

Cash
45
,000
Transfer in from General Fund

To record transfer from the General Fund.
4.
45,000
Debt Service Fund

Expenditures - bond principal
Expenditures - interest
25
,000
17
,500
Matured bond payable
25,000
Matured interest payable

To record matured principal and interest
on bond.
5.
17,500
Debt Service Fund

Matured bond payable
Matured interest payable
Cash
To record disbursement of cash for
bonds.
25
,000
17
,500
42,500
Capital
Projects
Cash
500,000
bond proceeds
50,000
450,000
encumbrances
500,000
500,000
Cash
40,000
370,000
68,000
18,000
33,000
35,000
360,000
45,000
Encumbrancescapital project
500,00
0
500,000
500,00
0
500,000
Expenditures-police
station
500,000
500,000
General Fund
Transfer out
45,000
23,000
45,000
Debt Service
Fund
Cash
45,000
Transfer in
42,500
2,500
expenditures - interest
Expenditures - bond
principal
45,000
25,000
45,000
25,000
Matured bond
payable
Matured interest
payable
17,500
25,000
17,500
25,000
17,500
17,500
Part E: Enterprise Fund transactions

1. Opening balances
Cash
Accumulated
depreciation
Capital assets
5,000
600,000
90,000
5,000
600,000
90,000
Bonds
480,00
0
480,00
0
GENERAL JOURNAL
Dat
e
2.
Account Names
Cash
Debit
Revenues - pool admissions fees

To receive admission fees from public
pool.
3.
Expenditures - salaries
Cash
To pay salaries.
Credit
70
,000
70,000
8
,000
8,000
4.

Expenditures - interest payable
40
,000
24
,000
Cash
To pay the portion of the bond due.
5.
Depreciation expense - swimming pool

Accumulated depreciation
To record depreciation.
Cash
5,000
8,000
70,000
64,000
3,000
Capital assets
64,000
30
,000
30,000
600,000
90,000
30,000
600,000
Bonds
120,000
Revenues - pool
admissions fee
480,000
70,000
8,000
480,000
70,000
8,000
Expenditures - bond
principal
Expenditures interest payable
Depreciation expense swimming pool
40,000
30,000
30,000
40,000
30,000
30,000
Part F: Preparation of fund financial statements
Coco City
General Fund
Preclosing Trial Balance
December 31, 2013
Account Name
Cash
Debit
$23,0
00
34,00
0
6,00
0
$
388,000
68,00
0
18,00
0
16,00
0
6,00
0

Revenues - park admission fees
Deferred revenues - property taxes
Deferred revenues - sales taxes
Transfer out to Debt Services
Expenditures - police supplies
45,00
0
33,00
0
298,00
0
75,00
0
13,00
0
5,00
0
Accrued Salaries
Unassigned fund balance
Estimated revenues - property taxes
Estimated revenues - sales taxes
Estimated revenues - parks admission fees
Appropriations - police salaries
Appropriations - police supplies
Credit
400,00
0
70,00
0
10,00
0
300,00
0
40,00
0
80,00
0
45,00
0
15,00
0
Appropriations - parks salaries

Estimated other financing uses
Budgeted fund balance
4,00
0
Encumbrances - police supplies

Budgetary fund balance for encumbrances
4,000
$
998,000
$
998,000
Coco City
Capital Projects Fund
December 31, 2013
Account Name
Debit
Bond proceeds
Expenditures - police station
$
500,000
$
500,000
Credit
$ 500,000
500,000
Coco City
Debt Service Fund
December 31, 2013
Account Name
Debit
Credit
Cash
Expenditures - interest
2,500
25,000
17,500
45,000
45,000
45,000
Coco City
Enterprise Fund
December 31, 2013
Account Name
Cash
Capital assets
Bonds payable
Revenues - pool admission
Expenditures - interest payable
Depreciation expense - swimming pool
Fund balance
Debit
$
3,000
600,000
Credit
120,000
480,000
70,000
8,000
40,000
24,000
30,000
$
705,000
35,000
705,000
Coco City
Balance Sheet
Governmental Funds
December 31, 2013
Genera Enterpr Capital
l
ise
Projects
Debt
Service
Total
Assets
Cash and cash equivalents
Sales taxes receivables
Property taxes receivable delinquent
$
23,000
6,0
00
34,0
00
Due from other funds

Capital assets, net
accumulated depreciation
$120,000
Other
Total assets
Liabilities
Due to other funds

Total liabilities
Deferred Inflows of
Resources
Deferred revenues property taxes
Deferred revenues - sales
taxes
Total deferred inflows
of resources
$
2,500
45,0
00
$
28,500
6,
000
34,0
00
45,0
00
480,0
00
43,0
00
$
636,500
480,0
00
45,0
00
$
108,000
Bond proceeds/payable
Accrued Salaries
$
3,000
$
13,000
45,0
00
58,0
00
16,0
00
6,0
00
22,0
00
$483,0
00
$
-
$
47,500
$480,0
00
$
500,000
$
45,000
480,0
00
500,0
00
45,0
00
Fund Balances
Assigned
16,0
00
6,
000
22,0
00
-
Nonspendable
Restricted
$
1,025,000
13,0
00
45,0
00
1,083,0
00
17,0
00
4,0
00
3,0
00
500,0
00
2,5
00
520,0
00
6,
500
Unassigned
Total fund balances
Total liabilities,
deferred inflows of
resources, and fund
balances
5,0
00
28,0
00
3,0
00
(500,0
00)
2,5
00
5,
000
(468,
500)
$
108,000
$483,0
00
$
-
$
47,500
$
636,500
Coco City
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2013
Genera Enterpr Capital
Debt
l
ise
Projects Service Total
Revenues
$
$
Property taxes
388,000
388,000
68,0
68,00
Sales taxes
00
0
18,0
16,00
Park admission fees
00
0
70,0
70,00
Pool admission
00
0
$
$
$
$
$
Total revenues
474,000
70,000
542,000
Expenditures
Current:
33,0
33,00
Police supplies
00
0
$
8,0
381,00
Salaries
373,000
00
0
500,0
500,00
Police station
00
0
Depreciation - swimming
30,0
30,00
pool
00
0
Debt service:
40,0
25,0
65,00
Principal
00
00
0
24,0
17,5
41,50
Interest
00
00
0
406,0
102,0
500,0
42,5
1,050,50
Total expenditures
00
00
00
00
0
Excess (deficiency) of
revenues over
expenditures
Other Financing
Sources (Uses)
68,0
00
(32,0
00)
(500,0
00)
(42,50
0)
(508,5
00)
45,0
00
45,00
0
(45,0
00)
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund
balance
Fund balance, beginning of
the year
Fund balance, end of year
(45,0
00)
(45,0
00)
23,0
00
5,0
00
$
28,000
(32,0
00)
35,0
00
$
3,000
(500,0
00)
45,0
00
2,5
00
$(500,0
00)
$
2,500
(508,5
00)
40,00
0
$(468,50
0)
Coco City
Budgetary Comparison Statement - General Fund
Original
Actual
Varianc
e
Revenues
Property taxes
Sales taxes
Parks admission fees
Total revenues
Expenditures
Police salaries
Police supplies
Parks salaries
Total expenditures
$
400,000
70,00
0
10,00
0
480,00
0
$
388,000
68,00
0
18,00
0
474,00
0
$(12,00
0)
$
(2,000)
$
8,000
(6,00
0)
300,00
0
40,00
0
80,00
0
420,00
298,00
0
33,00
0
75,00
0
406,00
(2,00
0)
(7,00
0)
(5,00
0)
(14,00
0)
Other Financing Sources (Uses)

Transfers out
Total other financing sources (uses)
Net Change in fund balance
(45,00
0)
(45,00
0)
$
15,000
Fund balance, beginning of year

Fund balance, end of year
(45,00
0)
(45,00
0)
23,00
0
5,00
0
$
28,000
$
8,000
Coco City
Statement of Net Position
Assets
Cash
$
3,000
Capital assets, net of accumulated depreciation of $120,000
480,000
$
483,000
Total assets
Liabilities
Current portion of bond
40,000
Long-term bond
440,000
Total Liabilities
Net Position
Invested in capital assets, net of related debt
480,000
3,000
Total net position
Coco City
Statement of Revenues, Expenses, and Changes in Net Position
$
3,000

Operating Revenues
$
70,000
Pool admission
$
70,000
Total operating revenues

Operating Expenses
8,0
00
30,0
00
Salaries
Depreciation - swimming pool
38,0
00
32,0
00
Total operating expenses

Operating income
Nonoperating Revenues (Expenses)
(40,0
00)
(24,0
00)
Bond principal
Interest payable
(64,0
00)
(32,0
00)
35,0
00
$
3,000
Total nonoperating revenues (expenses)

Net Loss
Net position, beginning of year
Net position, end of year
Continuing problem 10.1

Preparation of government-wide financial statements
Account Names
Net position
Debit
4
80,000
Bonds payable
To record beginning-of-year account balances.
Bonds payable
Credit
4
80,000
40,000
40,000
To reduce expenditures and record repayment of
liability enterprise fund.
Bonds payable
25,000

To reduce expenditures and record repayment of
liability debt service fund.
Proceeds of bonds
Bonds payable
To reverse financing source and record liability.
Deferred property taxes

Deferred sales taxes
25,000
5
00,000
500,000
16,000
6,000
16,000

Interest expense
6,000
7,500
Accrued interest payable

To record interest liability on accrual basis of
accounting.
Transfer out to Debt Service Fund
To eliminate transfers among governmental funds.
7,500
45,000
45,000
Cash
Property taxes
receivable delinquent
Sales taxes
receivable
Capital assets
Accumulated
depreciation
Deferred revenues
- property taxes
Deferred revenues
- sales taxes
Aggregated
Balances of Fund
Statements
Debit
Credit
28
,500
34
,000
6
,000
600,
000
Fund balance
Revenues:
Sales taxes
Park admission
fees
Pool admission
Expenditures:
Salaries
Police station
Depreciation swimming pool
Bond principal
Bond interest
Other financing
items:
Transfer in
120,
000
16
,000
6
,000
388,
000
68
,000
18
,000
70
,000
Property taxes
Adjusted Balances
Debit
Credit
28
,500
34
,000
6
,000
600,
000
120,
000
16
,000
6
,000
13
,000
40
,000
Accrued salaries
Police supplies
Adjustments
Debit
Credit
33
,000
381,
000
500,
000
30
,000
65
,000
41
,500
13
,000
40
,000
16
,000
6
,000
404,
000
74
,000
18
,000
70
,000
33
,000
381,
000
500,
000
30
,000
65
,000
7
,500
45
45
49
,000
,000
Transfer out
,000
45
,000
Bond proceeds
1,764,
000
45
,000
980,
000
1,764,
000
65
,000
480,
000
Net position
1,119,5
00
480,
000
7
,500
980,
000
$ 831,000
75,000
8,000
49,000
$ 963,000
7
,500
915,
000
480,
000
1,119,5
00
Coco City
Statement of Activities
Charges
for
Expenses Services
Programs
Police
Park
Pool
Interest on long-term debt
Total governmental activities
General revenues
Change in net position
Net position, beginning
Net position, ending
500,
000
Accrued interest
payable
Bonds payable
$ 18,000
70,000
$ 88,000
2,141,5
00
2,141,5
00
Net (Expense)
Revenue
$(831,000)
(57,000)
62,000
(49,000)
(875,000)
478,000
(397,000)
419,000
$ 22,000
Coco City
Statement of Activities
Governmental
Activities
Assets
Cash
Capital assets, net of $120,000 accumulated depreciation
Total assets
Liabilities
Accrued interest payable
Accrued Salaries
Bonds payable:
Due within 1 year
Due in more than 1 year
Total Liabilities
Net Position
Invested in capital assets, net of related debt
Unrestricted
Net position
$
28,500
34,0
00
480,0
00
542,5
00
7,5
00
13,0
00
65,0
00
435,0
00
520,5
00
20,0
00
2,0
00
$
22,000

Continuing Problems Ewell Kelsey

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Continuing Problems Ewell Kelsey

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Kelsey Ewell - Continuing

Part B: Budgetary accounting for the General Fund

Unassigned fund balance

Estimated revenues - property taxes

Estimated revenues - sales taxes

Estimated revenues - parks admission fees

Appropriations - police salaries

Appropriations - police supplies

Appropriations - parks salaries

To record the adopted budget.

2. Encumbrances - police supplies

Budgetary fund balance for encumbrances

3. Budgetary fund balance for encumbrances

Encumbrances - police supplies

Expenditures - police supplies

Appropriations police supplies

Budgetary fund balance for

Allowance for uncollectible

Revenues - property taxes

Revenues - property taxes

Allowance for uncollectible

Property taxes receivable

Property taxes receivable - delinquent

Allowance for uncollectible

Revenues - property taxes

Deferred revenues - property taxes

Sales taxes receivable

Revenues - sales taxes

Deferred sales tax revenues

Sales taxes receivable

Revenues - park admission fees

Expenditures - police salaries

Expenditures - police salaries

Expenditures - parks salaries

Revenues property taxes

Deferred revenues property taxes

Deferred sales tax

Part D: Capital Projects Fund and Debt Service Fund transactions

Debt Service Fund

Transfer in from General Fund

Debt Service Fund

Matured bond payable

Matured interest payable

Debt Service Fund

Part E: Enterprise Fund transactions

Revenues - pool admissions fees

Expenditures - bond principal

Depreciation expense - swimming pool

Expenditures interest payable

Depreciation expense swimming pool

Part F: Preparation of fund financial statements

Revenues - property taxes

Appropriations - parks salaries

Encumbrances - police supplies

Due from other funds

Due to other funds

Other Financing Sources (Uses)

Fund balance, beginning of year

Capital assets, net of accumulated depreciation of $120,000

Total net position

For the Year Ended December 31, 2013

Total operating revenues