Reference no: EM132670977
Problem 1: General Fund financial transactions for Frisco City. Prepare the journal entries, as appropriate, to record the following transaction. Transfer your journal entries to the appropriate T-accts.
1. Of the $800,000 in property taxes receivable at January 1, $780,000 was collected in cash. The remaining $20,000 was written off as uncollectible. Deferred property taxes at the beginning of the year were recognized as revenue.
2. Accrued salaries from the previous year were paid in the amount of $700,000.
3. Property taxes in the amount of $9,030,000 were levied in order to provide revenues of $9,000,000. Tax bills were sent to the property owners. An allowance for uncollectible taxes was established.
4. During the year, property taxes of $8,100,000 were collected in cash.
5. The state collects personal income taxes on behalf of the city. During the year, Frisco received personal income taxes of $4,600,000 from the state.
6. The Parks Department collected $700,000 in recreation fees during the year.
7. Frisco paid salaries of $13,600,000 charging the salary appropriations as follows:
Public safety $6,700,000
Public works $4,700,000
Parks $2,200,000
8. The state sent the city a check for $1,000,000 to finance a special public safety program, stipulating that the resources could be used at any time during 2019 or 2020. The $6,700,000 in public safety salaries paid in the previous transaction included $800,000 of salaries for this program, so $200,000 remains available for spending in the program in 2020.
9. Unpaid salaries at year-end (to be paid during the first week of 2020) were as follows:
Public safety $350,000
Public works $250,000
Parks $100,000
10. At year-end, the umcollected property taxes were declared delinquent. The existing allowance for uncollectible taxes is reclassified to delinquent. Frisco's director of finance estimated that $500,000 of the uncollected taxes would be collected in January amd February 2020 and $400,000 would be collected during the rest of 2020.
11. In January 2020, the state advised Frisco that the state held $500,000 in personal income taxes on the city's behalf and that it would send the taxes to Frisco by February 10. It also told Frisco that it was likely that by April 30, Frisco would receive and additional $200,000 of taxes with final returns, but that tax refunds would probably be $300,000. (Remember that "available" for income taxes is defined as taxes expected to be collected within 120 days after the end of the calendar year)
12. Police officers who retired at the end of 2019 will be paid $10,000 for unused vacation pay on January 6, 2020.
SPECIAL REVENUE FUND TRANSACTIONS
The Library Special Revenue Fund started calendar year 3019 with a cash balance of $5,000, no liabilities, and a restricted fund balance of $5,000. Post the opening balances to the T-accts. Prepare the journal entries to record the following transctions in the Library Special Revenue Fund, and, where appropriate in the General Fund. Post the entries to the appropriate T-accts.
13. The General Fund transferred $100,000 cash to the Library Special Fund to help the library finance its activities for the year.
14. The library received a grant of $300,000 from the county. The grant must be used only for library purposes, but there is no requirement as to when it must be spend.
15. The library received $20,000 from fines, donations, and various fundraising events.
16. The library paid $350,000 for salaries and $40,000 to acquire books and periodicals. Charge the Expenditures-culture salaries and Expenditures-culture supplies accounts respectively.