Problem 155 LO 4 7 9 Journal entries statement of revenue expenditures and change in fund balance On July 1 20X0 the beginning of its fiscal year the trial balance of the general fund of the city of Elsworth was as follows

Debit Credit

Cash 20,000

Tax Receivable—Delinquent 120,000

Allowances for Uncollectible Delinquent Taxes 12,000

Interest and Penalties Receivable on Taxes 8,000

Allowance for Uncollectible Interest and Penalties 800

Due from Other Funds 28,000

Vouchers Payable 87,200

Fund Balance Reserved for Encumbrances 16,000

Fund Balance—Unreserved, Undesignated 60,000

Total 176,000 176,000

The following events occurred:

a. The budget shows estimated general fund revenues of $450,000 and estimated expenditures (including $16,000 encumbered in the prior year) of $392,000.

b. In July, the item ordered in the previous year was received at an invoice cost of $16,400. A voucher is prepared.

c. Property taxes amounting to $300,000 were levied, with 4% estimated to be uncollectible.

d. Cash collections during the year were as follows:

Current taxes $270,000

Delinquent taxes (in full settlement) 104,000

Interest and penalties on last year's taxes (in full settlement) 7,600

Due from other funds 28,000

Total $409,600

The controller wishes variations in estimates to be recorded in the appropriate revenue or expenditure account.

e. Purchase orders totaling $276,000 were placed. Later, invoices for $260,000 were received and vouchered; supplies inventory purchases were $16,000 of the total. The purchase covered $254,000 of the encumbrances.

f. Payrolls of $50,000 were paid. (Ignore payroll taxes and other deductions.) In addition, vouchers totaling $280,000 were paid. (Supplies inventory purchases were $16,000 of the total.)

g. An automobile was purchased for the fire department. It cost $16,000 and was not previously encumbered. The invoice is vouchered.

h. At year-end, $6,000 in supplies was on hand. There were no supplies on hand a year ago. The city wishes to show the inventory and to establish a proper reserve.

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