Reference no: EM132713186

Question - Assume that on July 1, 2008, New York administration council authorized the establishment of a special Revenue Fund. The special revenue fund is established to make New York culture center. The fund is used only for the construction and maintenance of cultural center and needs Special tax Assessment against residents of New York. The town council adopted a budget for the special revenue fund for the year ending June 30, 2007, providing for estimated revenue (from the special Assessments) of $ 850,000 and appropriations for reimbursement to the General fund for expenditures made by that fund for the services provided to Cultural center) of $ 800,000. Following are additional transactions or events of the city of X special revenue fund for the year ending June 30, 2008:

A. On July 1, 2008, the City recorded the adopted budget in the books.

B. On September 10, 2008 Special Assessments tax totaling $850,000 were levied which are to be paid in full in 90 days.

C. On October 23, 2008 Cash Receipts from Special Assessment Taxes of $850,000 were collected in full.

D. On January 1, 2008 of the cash receipts, $630,000 was invested in Treasury bills with face amount of $650,000. The treasury bill mature on June 30, 2008 and were redeemed in full on that date.

E. On March 1, 2008 Billings from the City of New York General fund, requesting reimbursement of expenditures of that fund, totaled dollar $810,000; of that amount, $760,000 was paid to the General Fund.

F. On June 30, 2008, the City council of New York designated the fund balance of the Special revenue fund (60,000) for reimbursement of the General Fund during the year ending June 30, 2009.

Required -

A. Record the above transaction in New York City Cultural center special revenue fund.

B. Prepare trial balance as of June 30, 2008.

C. Prepare statement of revenue, expenditure and fund balance for the year ended June 30, 2008.

D. Prepare balance sheet on June 30, 2008.