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
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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