Question

Comprehensive General Fund Review

The Wayne City Council approved and adopted its general fund budget for 2020. The budget contained the following amounts:

Estimated revenues	$70,000,000
Appropriations	66,000,000
Estimated transfers in	1,000,000
Estimated transfers out	6,000,000

During 2020, various transactions and events occurred which affected the general fund. The legal budgetary basis is used.

Required
For items 1–40, indicate whether the item should be debited (D), credited (C), or is not affected (N) in the general fund.

a. Items 1–5 involve recording the adopted budget

1.

Estimated revenues

Answer

2.	Fund balance—unassigned	Answer
3.	Appropriations	Answer
4.	Estimated other financing sources	Answer
5.	Expenditures	Answer

b. Items 6–10 involve recording the 2020 property tax levy. It was estimated that $500,000 would be uncollectible.

6.

Property taxes receivable

Answer

7.	Bad debt expense	Answer
8.	Allowance for uncollectibles	Answer
9.	Revenues	Answer
10.	Estimated revenues	Answer

c. Items 11–15 involve recording encumbrances at the time purchase orders are issued.

11.

Encumbrances

Answer

12.	Fund balance—assigned	Answer
13.	Expenditures	Answer
14.	Accounts payable	Answer
15.	Purchases	Answer

d. Items 16–20 involve recording expenditures that had been previously encumbered in the current year.

16.

Encumbrances

Answer

17.	Fund balance—assigned	Answer
18.	Expenditures	Answer
19.	Accounts payable	Answer
20.	Fund balance—unassigned	Answer

e. Items 21–25 involve recording the transfer made to the Library debt service fund. No previous entries were made regarding this transaction.

21.

Fund balance—assigned

Answer

22.	Due from Library debt service fund	Answer
23.	Cash	Answer
24.	Other financing uses	Answer
25.	Encumbrances	Answer

f. Items 26–40 involve recording the closing entries (other than encumbrances) for 2020.

26.

Estimated revenues

Answer

27.	Due to special revenue fund	Answer
28.	Appropriations	Answer
29.	Estimated other financing uses	Answer
30.	Expenditures	Answer
31.	Revenues	Answer
32.	Other financing uses	Answer
33.	Bonds payable	Answer
34.	Bad debt expense	Answer
35.	Depreciation expense	Answer
36.	Fund balance—assigned	Answer
37.	Encumbrances	Answer
38.	Transfers out	Answer
39.	Due from enterprise fund	Answer
40.	Deferred inflows of resources	Answer

Answer 1

a. Items 1–5 involve recording the adopted budget

1. Estimated revenues $70,000,000

2. Fund balance—unassigned -$1,000,000 ($700L-$660L+$100L-$600L)

3. Appropriations =$66,000,000

4. Estimated other financing sources =$1,000,000

5. Expenditures =$6,000,000

B. Items 6–10 involve recording the 2020 property tax levy. It was estimated that $500,000 would be uncollectible.

6. Property taxes receivable $500,000

7. Bad debt expense =$0

8. Allowance for uncollectibles =$500,000

9. Revenues Answer=$70,000,000

10. Estimated revenues =$70,000,000

c. Items 11–15 involve recording encumbrances at the time purchase orders are issued.

11. Encumbrances =%0

12. Fund balance—assigned =-$1,000,000

13. Expenditures =$6,000,000

14. Accounts payable -$0

15. Purchases =$0

d. Items 16–20 involve recording expenditures that had been previously encumbered in the current year.

16. Encumbrances Answer

17. Fund balance—assigned Answer

18. Expenditures Answer

19. Accounts payable Answer

20. Fund balance—unassigned Answer

e. Items 21–25 involve recording the transfer made to the Library debt service fund. No previous entries were made regarding this transaction.

21. Fund balance—assigned Answer

22. Due from Library debt service fund Answer

23. Cash Answer

24. Other financing uses Answer

25. Encumbrances Answer

f. Items 26–40 involve recording the closing entries (other than encumbrances) for 2020.

26. Estimated revenues Answer

27. Due to special revenue fund Answer

28. Appropriations Answer

29. Estimated other financing uses Answer

30. Expenditures Answer

31. Revenues Answer

32. Other financing uses Answer

33. Bonds payable Answer

34. Bad debt expense Answer

35. Depreciation expense Answer

36. Fund balance—assigned Answer

37. Encumbrances Answer

38. Transfers out Answer

39. Due from enterprise fund Answer

40. Deferred inflows of resources Answer