Accounting Case Study due by thursday morning!!






The General Fund of Middleville has presented you with the following trial balance as of June 30, 2011.




Debits Credits


Cash $ 40,000


Taxes Receivable- Delinquent 142,000


Estimated Uncollectible Taxes- Delinquent 9,100


Interest and Penalties Receivable 32,000


Vouchers Payable 24,000


Budgetary Fund Balance-Reserve for Encumbrances 10,200


Fund Balance _________ 170,700


$ 214,000 $214,000




The information that is being presented to you pertains to the transactions for the city of Middleville for the fiscal year ended June 30, 2012.




1. The following budget was adopted by the city council:


Estimated Revenues:


Property Taxes $ 650,000


Fines and Penalties 44,000


Licenses and Permits 150,000


Federal Grant 85,000


929,000


Appropriations and Other Financing Uses


Public Safety 402,000


General Government 263,000


Public Works 102,000


Parks and Recreation 92,000


Transfers Out 34,000


893,000




2. Encumbrances outstanding at the end of the year were re-opened.


3. Property taxes of $ 660,000 were levied. It is estimated that 2.5% of the property taxes levied are expected to be uncollectible/


4. Purchase orders issued for the 2012 fiscal year were as follows:


Public Safety, $ 395,000; General Government, $ 259,000; Public Works, $ 100,000; Parks and Recreation, $ 98,000.


5. Cash collected for the Federal Grant from the Federal Government, $ 94,000.


6. Cash collected and transferred in as follows:


Fines and Penalties 43,000


Licenses and Permits 164,000


7. Cash collected on property taxes were as follows: Current taxes, $559,000, Delinquent Taxes, $ 41,000 and $ 22,000 of interest and penalties were collected.










8. Purchase orders issued in 2012 in the following amounts were filled in at the following amounts:


Estimated Actual


Public Safety $ 395,000 $ 393,600


General Government $ 259,000 $ 258,200


Public Works $ 100,000 $ 99,400


Parks and Recreation $ 98,000 $ 97,500


--------------- ---------------


$ 852,000 $ 848,700




9. Vouchers paid amounted to $ 840,000 and the transfer out to the Debt Service Fund, $34,000.


10. Please reclassify the Taxes Receivable "“Current and Estimated Uncollectible Taxes- Change from Current to Delinquent.






Instructions:


a. Prepare journal entries for the fiscal year ending 2012.


b. Prepare closing entries.


c. Prepare a General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ended June 30, 2012.


d. Prepare a General Fund Balance Sheet as of June 30, 2012.

Show more >

The tutor is currently answering this question.

Please check back later.

Haven't found solution?

Need More Help?

Ask a Question!

Learn more effectively and get better grades!

Do my homework