The following information is necessary to complete the problems portion of this exam.

 

Calhoun County

General Fund

Balance Sheet

Dec 31, 2010

 

Assets

 

Liabilities and Fund Balance

 

 

 

 

 

Cash

$ 15,000

 

Accounts Payable

$ 6,000

Accounts Receivable

2,500

 

Total Liabilities

6,000

 

 

 

 

 

 

 

 

Reserve for Encumbrances

500

 

 

 

Unreserved Fund Balance

11,000

 

 

 

 

 

Total Assets

$ 17,500

 

Total Liabilities and Fund Balance

$ 17,500

 

 

1.  (2pts) Reinstate Encumbrances closed Dec 31.

Account Name

Debit

Credit

Encumbrances control (prior year)

500

 

Budgetary fund balance- reserve for encumbrances

 

500

To reinstate encumbrances closed year-ended Dec 31, 2010.

 

 

 

2.  (2pts) General Fund Budget is adopted: Planned Expenditures= $700,000 and Planned revenues = $690,000. Book the budget.

Account Name

Debit

Credit

Estimated revenues control

690,000

 

Budget fund balance

10,000

 

Appropriations Control

 

700,000

To establish the General Fund Budget for 2011.

 

 

 

 

3.  (2pts) Property Tax levy set at $700,000. 3% of levy not expected to be collected. Journalize Receivable.

Account Name

Debit

Credit

Taxes receivable –current

700,000

 

Estimated uncollectible  current tax

 

21,000

Revenue control

 

679,000

To record property tax receivable and the estimated uncollectible portion of current taxes.

 

 

 

4.  (2pts) Fire truck ordered for $80,000 and 2 Police cruisers ordered at a cost of $25,000 each. Journalize Encumbrance.

Account Name

Debit

Credit

Encumbrances control

130,000

 

Budgetary fund balance- reserve for encumbrances

 

130,000

To record encumbrances for the estimated cost of ordered equipment.

 

 

 

5. (2pts) $7,500 loaned to Special Revenue Fund #4. Amount to be repaid in 6 months.  Journalize Cash transfer for General Fund only.

Account Name

Debit

Credit

Due from special revenue fund #4

7,500

 

Cash

 

7,500

To record transfer from General funds to special revenue fund #4.