Reference no: EM132460551

The following transactions occurred during the 2017 fiscal year for the City of Evergreen. For budgetary purposes, the city reports encumbrances in the Expenditures section of its budgetary comparison schedule for the General Fund but excludes expenditures chargeable to a prior year's appropriation.

Problem 1. The budget prepared for the fiscal year 2017 was as follows:

Estimated Revenues:

Taxes                                        $1,943,000

Licenses and permits                        372,000

Intergovernmental revenue                 397,000

Miscellaneous revenues                        62,000

Total estimated revenues                 2,774,000

Appropriations:

General government                        471,000

Public safety                                  886,000

Public works                                    650,000

Health and welfare                          600,000

Miscellaneous                                   86,000

Total appropriations                        2,693,000

Budgeted increase in fund balance       $81,000

Problem 2. Encumbrances issued against the appropriations during the year were as follows:

General government          $58,000

Public safety                   250,000

Public works                   392,000

Health and welfare        160,000

Miscellaneous              71,000

Total                      $931,000

Problem 3. The current year's tax levy of $2,005,000 was recorded; uncollectibles were estimated as $65,000.

Problem 4. Tax collections from prior years' levies totaled $132,000; collections of the current year's levy totaled $1,459,000.

Problem 5. Personnel costs during the year were charged to the following appropriations in the amounts indicated. Encumbrances were not recorded for personnel costs. Since no liabilities currently exist for withholdings, you may ignore any FICA or federal or state income tax withholdings. (Note: Expenditures charged to Miscellaneous should be treated as General Government expenses in the governmental activities general journal at the government-wide level.)

General government                $411,000

Public safety                          635,000

Public works                          254,000

Health and welfare                 439,000

Miscellaneous                         11,100

Credit to Vouchers Payable   $1,750,100

Problem 6. Invoices for all items ordered during the prior year were received and approved for payment in the amount of $14,470. Encumbrances had been recorded in the prior year for these items in the amount of $14,000. The amount chargeable to each year's appropriations should be charged to the Public Safety appropriation.

Problem 7. Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in Transaction (2) of this problem. The following appropriations were affected.

Actual Liability Estimated Liability General government $52,700 $52,200

Public safety                                                      236,200 240,900

Public works                                                       360,000 357,000

Health and safety                                                130,600 130,100

Miscellaneous                                       71,000 71,000 $850,500 $851,200

Problem 8. Revenue other than taxes collected during the year consisted of licenses and permits, $373,000; intergovernmental revenue, $400,000; and $66,000 of miscellaneous revenues. For purposes of accounting for these revenues at the government-wide level, the intergovernmental revenues were operating grants and contributions for the Public Safety function. Miscellaneous revenues are not identifiable with any function and therefore are recorded as General Revenues at the government-wide level.

Problem 9. Payments on Vouchers Payable totaled $2,505,000.