Caitlin Fuller

Continuing Problem 1
ACCT 2050: Governmental Accounting

Part A (Chapter 2-Identification of funds)

1. The general fund would be used to account for Coco Citys day-to-day
operating activities.
2. The capital projects fund would be used to acquire or construct major capital
assets.
3. The debt service fund would be used to accumulate resources to service longterm debt.
4. The enterprise fund would be used to operate a municipal swimming pool.
Part B (Chapter 3-Budgetary accounting for the General Fund)
a) Record the opening account balances
b) Prepare journal entries to record all four transactions

GENERAL JOURNAL
Da
te

Account Names

1 Estimated revenues-property taxes

Estimated revenues-sales taxes
Estimated revenues-parks admission fees

Debit
400,0
00
70,00
0
10,00
0

300,0
00
40,00
0
80,00
0
45,00
0
15,00
0

Appropriations-police salaries
Appropriations-police supplies
Appropriations-parks salaries
Appropriations-transfer to Debt Service Fund
Budgetary fund balance
To record the budget for 2013 in the general
ledger.

2 Encumbrances-police supplies
Budgetary fund balance reserved for
encumbrances
To record encumbrances for purchase orders.
Budgetary fund balance reserved for
3a encumbrances
Encumbrances-police supplies

Credi
t

39,00
0
39,00
0

35,00
0
35,00
0

To reverse encumbrances for purchase of police

cars.
33,00
0

3b Expenditures-police supplies

33,00
0

Vouchers payable
To record purchase of police cars.
33,00
0

4 Vouchers payable

33,00
0

Cash
To record payment of vouchers for police cars.

c) Post the

Budgetary
fund balance
reserved for
Vouchers encumbrance
payable
s
33,000
35,00 39,00
33,000 0
0

journal entries to T-accounts.

Encumbrancespolice supplies
39,000
35,000

4,000
0
4,000
Expenditurespolice supplies
33,000
Cash
33,0
00
33,000

33,0
00

d) Prepare an appropriations ledger for police supplies and post the budgetary
transactions.

Coco City
General Fund
Appropriations Ledger
For the Year 2013
Object Code: Police Supplies
Appropriat
ions
Da
te
1
2
3
4

Item
Budget
Order Materials
Receive
Materials
Record
expenditure

Cr
40,000

Encumbra
nces
Dr
Cr

Expendit
ures

Available
Appropria
tion

Dr

Cr
40,000
1,000

39,000
35,000

36,000
33,000

3,000

Part C (Chapter 5-Other General Fund transactions)

Prepare journal entries, as appropriate, to record these transactions, and post
the journal entries to T-accounts.

GENERAL JOURNAL
Da
te

Account Names

1 Property taxes receivable

Allowance for refunds and uncollectible
taxes

Debit
404,0
00

4,000
400,0
00

Revenues-property taxes
To record 2013 property tax levy.
2 Allowance for refunds and uncollectible taxes
Property taxes receivable
To write off property taxes as uncollectible.

3 Cash

Credi
t

3,000
3,000

370,0
00

370,0
00

Property taxes receivable

To record collection of property taxes.

4a Property taxes receivable-delinquent

31,00
0
31,00
0

Property taxes receivable

To reclassify uncollected taxes as delinquent.

4b Revenues-property taxes

10,00
0
10,00
0

Deferred property tax revenues

To record deferral of revenues for amount not
expected to be collected before February 2014.
4c Allowance for refunds and uncollectible taxes
Revenues-property taxes
To reverse allowance for uncollectible property
taxes.

5a Cash

1,000
1,000

68,00
0
68,00
0

Revenues-sales taxes
To record sales tax collections.
5b Sales taxes receivable
Revenues-sales taxes
To record sales taxes not received until Jan. 20,
2014.

6 Cash

6,000
6,000

18,00
0
18,00
0

Revenues-parks admission fees

To record collection of parks admission fees.

7 Vouchers payable
Cash

35,00
0
35,00

0
To record payment of unpaid vouchers.
290,0
00
70,00
0

8 Expenditures-police salaries
Expenditures-parks salaries

360,0
00

Cash
To record payment of salaries.
9 Expenditures-police salaries
Expenditures-parks salaries

8,000
5,000

Accrued salaries and other payables

To accrue salaries due to be paid on Jan. 5, 2014.
Revenues10 No journal entry is required.
property
Allowance
for
Sales
taxes
taxes
Property taxes
Sales taxes
receivable
10,0 receivable
400,0
receivable
6,000
00
00
404,000 370,000
6,000
1,00031,000
3,000
391,0
0 00

Property taxes
receivabledelinquent
31,000

6,000

3,000
1,000

31,000
Revenues-sales
taxes

6,000

refunds and
uncollectible
accounts

4,000

13,00
0

68,000
6,000
Revenues-parks
admission fees
18,000
74,000
Vouchers payable
35,000
35,000

18,000
Expenditurespolice salaries
290,000
8,000

Expenditures-parks
salaries
70,000
5,000
Accrued salaries
and other payables
13,000

298,000

75,000
Transfer out to Debt
Cash
Service Fund
13,000
370,0 35,000
45,000
00
68,00 360,000
0
18,000
45,000
Part D (Chapter 6-Capital Projects Fund
and Debt Service Fund transactions)
16,00
Prepare journal entries for all funds, as appropriate,
0 45,000
to record these transactions and post the journal
entries to T-accounts for each fund.
GENERAL JOURNAL
Da
te
Account Names
1 In the Capital Projects Fund:

Debit

Credit

Cash

500,00
0
500,00
0

Other financing source-proceeds of bonds

To record the issuance of bonds.
2 In the Capital Projects Fund:
Expenditures-capital outlay

500,00
0
500,00
0

Cash
To record purchase of police station.
3a In the Debt Service Fund:
Cash
Transfer in from General Fund
To record transfer in from General Fund.
3b In the General Fund:
Transfer out to Debt Service Fund
Cash
To record transfer out to Debt Service Fund.
4 In the Debt Service Fund:
Expenditures-bond principal
Expenditures-bond interest
Matured principal payable
Matured interest payable
To record matured debt service.
5 In the Debt Service Fund:
Matured principal payable
Matured interest payable
Cash
To record the payment of debt service.

Cash
500,0
500,0
00
00
45,00
40,00

45,000
45,000

45,000
45,000

25,000
15,000
25,000
15,000

25,000
15,000
40,000

5,000

0
Other
financing
sourceproceeds of
bonds
500,000

Transfer in from
General Fund
45,000
500,000

Expenditurescapital outlay
500,000

45,000
Expenditures-bond
principal
25,000

500,000

Expenditures-bond
interest
15,000
25,000

15,000

Part E (Chapter 7-Enterprise Fund transactions)

Record the opening balances in T-accounts, prepare journal entries to record
the transactions, and post the journal entries to T-accounts.

GENERAL JOURNAL

Da
te
Account Names
1 No journal entry is required.

Debi
t

70,0
00

2 Cash

70,0
00

Revenues-swimming pool admissions fees

To record collection of admissions fees.
8,00
0

3 Salaries expense

8,00
0

Cash
To record payment of salaries to lifeguard and clerk.
24,0
00
40,0
00

4 Interest expense
Bonds payable

64,0
00

Cash
To record payment of debt service on swimming
pool.

5 Depreciation expense-swimming pool

Accumulated depreciation-swimming pool
To record depreciation expense on swimming pool.
Cash
SalariesRevenues70,00
swimming
expense
0 8,000
8,000 pool
64,00
admission
0
fees
70,000
8,000
Depreciation
expense- Interest expense
swimming pool
70,000 26,00
24,000
0
30,000

30,000

Cred
it

24,000

30,0
00
30,0
00

Part F (Chapter 9-Preparation of fund financial statements)

Prepare preclosing trial balances for all funds. Also, prepare the following fund
financial statements and schedules:

Coco City
General Fund
Preclosing Trial Balance
December 31, 2013
Account Name
Debit
Budgetary Accounts
$
Estimated revenues-property taxes
400,000
Estimated revenues-sales taxes
70,000
Estimated revenues-parks admission fees
10,000
Appropriations-police salaries
Appropriations-police supplies
Appropriations-parks salaries
Appropriations-transfer to Debt Service
Fund
Budgetary fund balance
Financial Accounts
Encumbrances-police supplies
Budgetary fund balance reserved for
encumbrances
Cash
Sales taxes receivable
Property taxes receivable-delinquent
Accrued salaries and other payables
Deferred property tax revenues
Unassigned fund balance
Revenues-property taxes
Revenues-sales taxes
Revenues-parks admissions fees
Expenditures-police supplies
Expenditures-police salaries
Expenditures-parks salaries
Transfer out to Debt Service Fund

Credit

$
300,000
40,000
80,000
45,000
15,000
4,000
4,000
23,000
6,000
31,000
13,000
10,000
5,000
391,000
74,000
18,000
33,000
298,000
75,000
45,000
$
995,000

$
995,000

Coco City
Capital Projects Fund
Preclosing Trial Balance
December 31, 2013
Account Name
Debit
Other financing source-proceeds of
bonds
$
Expenditures-capital outlay
500,000
$
500,000

Cash

Coco City
Debt Service Fund
Preclosing Trial Balance
December 31, 2013
Account Name
Debit
$
5,000

Transfer in from General Fund

Expenditures-bond principal
Expenditures-bond interest

Credit
$
500,000
$
500,000

Credit
$
45,000

25,000
15,000
$
45,000

Coco City
Enterprise Fund
Preclosing Trial Balance
December 31, 2013
Account Name
Debit
$
Cash
3,000
Swimming pool
510,000
Accumulated depreciationswimming pool

$
45,000

Credit

$
30,000

Bonds payable
Net position
Revenues-swimming pool
admissions fees
Salaries expense
Interest expense
Depreciation expense-swimming
pool

440,000
35,000
70,000
8,000
24,000
30,000
$
575,000

$
575,000

1. Governmental funds balance sheet

Coco City
Balance Sheet
Governmental Funds
December 31, 2013
General
Fund

Capital
Project
s Fund

Debt
Service
Fund

Assets
Cash
Sales taxes receivable
Property taxes receivabledelinquent
Total assets
Liabilities
Accrued salaries and other
payables
Deferred Inflows of Resources
Deferred property tax revenues
Fund Balances
Assigned
Unassigned
Total fund balances
Total liabilities, deferred
inflows of
Resources and fund

$
23,000
6,000
31,000
$
60,000

$
5,000

$
5,000

$
13,000
10,000
5,000
37,000
37,000
$
60,000

5,000
$
5,000

balances

2. Governmental funds statement of revenues, expenditures, and changes in fund

balances

Coco City
Governmental Funds
Statements of Revenues, Expenditures, and Changes in
Fund Balances
For the Year Ended December 31, 2013
General
Fund

Capital
Projects
Fund

Debt
Service
Fund

Revenues
Property taxes
Sales taxes
Parks admission fees
Total revenues
Expenditures
Current:
Police supplies
Police salaries
Parks salaries
Debt service:
Principal
Interest

$
391,000
74,000
18,000
483,000

33,000
298,000
75,000
$
25,000
15,000

Capital outlay
Total expenditures
Excess (deficiency) of
revenues over
expenditures
Other Financing Sources
(Uses)
Proceeds of bonds
Transfers in
Transfers out
Total other financing sources
(uses)
Net change in fund balances
Fund balances-beginning
Fund balances-ending

406,000

$
500,000
500,000

40,000

(500,000)

(40,000)

77,000

500,000
45,000
(45,000)
(45,000) 500,000
32,000
0
5,000
0
$
$
37,000
-

45,000
5,000
0
$
5,000

3. General Fund budgetary comparison schedule

Coco City
General Fund
Budgetary Comparison Schedule
Year Ended December 31, 2013
Original
and Final
Budgets

Actual

Varianc
e

$
400,000
70,000
10,000
480,000

$
391,000
74,000
18,000
483,000

$
(9,000)
4,000
8,000
3,000

40,000
300,000

33,000
298,000

7,000
2,000

Revenues
Property taxes
Sales taxes
Parks admission fees
Total revenues
Expenditures
Police supplies
Police salaries

Parks salaries
Transfer to Debt Service Fund
Total expenditures
Excess of revenues over
expenditures
Fund balance, beginning of
year
Fund balance, end of year

80,000
45,000
465,000

75,000
45,000
451,000

5,000
0
14,000

15,000

32,000

17,000

5,000

5,000

$
20,000

$
37,000

$
17,000

4. Proprietary funds statement of net position

Coco City
Enterprise Fund
Statement of Net Position
December 31, 2013
Assets
Current assets:
Cash
Capital assets:
Swimming pool, (net of accumulated
depreciation
of $120,000)
Total assets
Liabilities

$3,000

480,000
$483,000

Current liabilities:
Current portion of bonds payable
Noncurrent liabilities:
Bonds payable
Total liabilities
Net Position
Net investment in capital assets
Unrestricted
Total net position

40,000
400,000
440,000
40,000
3,000
$
43,000

5. Proprietary funds statement of revenues, expenses, and changes in fund net

position

Coco City
Enterprise Fund
Statement of Revenues, Expenses, and Changes in Fund Net
Position
For the Year Ended December 31, 2013
Operating Revenues
$
Swimming pool admission fees
70,000
Operating Expenses
$
Salaries expense
8,000
30,
Depreciation expense
000

Total operating expenses

Operating income
Nonoperating Expenses
Interest expense
Increase in net position
Total Net Position at Beginning of Year
Total Net Position at End of Year

38,000
32,000
(24,000
)
8,
000
35,
000
$
43,000

Part G (Chapter 10-Preparation journal entries for government-wide financial

statements and preparation of government-wide financial statements)
1. Prepare journal entries needed to convert the governmental funds financial
statements to the governmental activities column of the government-wide financial
statements.

GENERAL JOURNAL
Da
te
Account Names
1 Transaction 4 Part C
Deferred property tax revenues

Debit
10,00

Credi
t

0
10,00
0

Property tax revenues

To recognize property tax revenues on an accrual
basis.
2 Transaction 1 Part D
Proceeds of bonds

500,0
00
500,0
00

Bonds payable
To reverse financing source and record liability
3 Transaction 2 Part D
Capital assets

500,0
00
500,0
00

Expenditures-capital outlay
To reverse expenditures and record capital assets
4 Transaction 4 Part D
Bonds payable

25,00
0
25,00
0

Expenditures-bond principal
To reduce expenditures.
5 Transaction 1 Part D
Depreciation expense

10,00
0
10,00
0

Accumulated depreciation
To record depreciation for 2013.
6 Transaction 2 Part D
Interest expense
Accrued interest payable
To record interest liability on an accrual basis.

7,125
7,125

7 Transaction 3 Part D
Transfer in from General Fund
Transfer out to Debt Service Fund

45,00
0
45,00

0
To eliminate transfers among governmental funds.
2. Post the journal entries to a six-column work sheet.

Work Sheet for Preparing Government-Wide Financial Statements

Aggregated Balances
of Fund Statements

Debit
Cash
Sales taxes receivable
Property taxes receivabledelinquent
Accrued salaries and other
payables
Deferred property tax
revenues
Unassigned fund balance
Revenues:
Property taxes
Sales taxes
Parks admission fees
Expenditures:
Police supplies
Police salaries
Parks salaries
Bond principal
Bond interest
Capital outlay
Other financing items:
Proceeds of bonds
Transfers in
Transfers out

Capital assets
Accumulated depreciation
Accrued interest payable
Bonds payable
Depreciation expense

Credit

Adjustments
Debit Credit

Adjusted Balances
Debit
Credit

28,000
6,000

28,000
6,000

31,000

31,000
13,000
10,000
5,000

13,000
10,000
5,000

391,000
74,000
18,000
33,000
298,000
75,000
25,000
15,000
500,000

401,000
74,000
18,000
33,000
298,000
75,000

25,000
7,125

22,125
500,000

500,000
45,000
45,000
$
1,056,000

10,000

500,000
45,000
45,000

$
1,056,000
500,000

25,000
10,000

500,000
10,000
7,125
500,000

10,000
7,125
475,000
10,000

$
$
$
1,003,12
1,097,12 1,097,12
5
5
5

$
1,003,12
5

Also, prepare Coco Citys financial statements: the government-wide statement of

net position and the government-wide statement of activities.
3. The government-wide statement of net position

Coco City
Statement of Net Position
December 31, 2013
Assets
Cash
Sales taxes receivable
Property taxes receivable-delinquent
Capital assets, net of $10,000 accumulated
depreciation
Total assets
Liabilities
Accrued salaries and other payables
Accrued interest payable
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

$
28,000
6,0
00
31,0
00
490,0
00
555,0
00
13,0
00
7,1
25
50,000
425,000
495,125
15,000
40,875
$
55,875

4. The government-wide statement of activities

Coco City
Statement of Activities
For the Year Ended December 31, 2013
Charge
s for
Net
Expen Service (Expense)
ses
s
Revenue
Programs
$
$
Police supplies
43,000
(43,000)
298,00
(298,00
Police salaries
0
0)
$
Parks salaries
75,000 18,000
(57,000)
Interest on long-term
debt
22,125
(22,125)
Total governmental
$438,1
$
(420,12
activities
25
18,000
5)
General revenues
Property taxes
401,000
Sales taxes
74,000
Total general revenues
475,000
Change in net position
54,875
Net position, beginning
1,000
$
Net position, ending
55,875