Question

E-45 (Statement of revenues, expenditures, and changes in fund balances) prepare, in good form, the 20x1 statement of revenues, expenditures, and changes in fund balances for the general fund of Crabtree township, based on the following information:

Property tax revenues $13,000,000

Licenses and permits $800,000

Intergovernmental grants $2,500,000

Short-term note proceeds $775,000

General capital asset sale proceeds (Equal to book value less 10%) $523,000

Receipt of residual assets of terminated Debt Service Fund $90,000

Amount paid to Debt service fund to cover principal and interest payments $100,000

General government expenditures $800,000

Education expenditures $10,250,000

Public safety expenditures $3,000,000

Highways and streets expenditures $2,460,000

Health and sanitation $920,000

Capital assets purchased $1,200,000

Retirement of principal of long term note 300,000

Interest payment on long-term note $30,000

Interest expenditures on short-term note $68,000

Unreserved Fund Balance, January 1, 20X1 $1,190,000

Reserve for Advances, January 1, 20X1 $3,000,000

Reserve for Encumbrances, January 1, 20X1 $$560,000

Instructions: 20% original increase, 95% revised

Answer 1

Crabtree Township

General Fund

Statement of Revenues, Expenditures, and Changes in Fund Balance

For the Year Ended December 31, 20X1

Revenues:

       Property Taxes ...................................................................................................            $13,000,000

       Licenses and Permits..........................................................................................                   800,000

       Intergovernmental .............................................................................................                2,500,000

               Total Revenues ...........................................................................................              16,300,000

Expenditures:

       Current Operating:

General Government .............................................................. $   800,000

               Education ................................................................................... 10,250,000

               Public Safety ............................................................................... 3,000,000

               Highways and Streets................................................................. 2,460,000

Health and Sanitation .............................................................. 920,000       17,430,000

       Capital Outlay....................................................................................................     1,200,000

       Debt Service:

Principal Retirement...................................................................... 300,000

Interest.......................................................................................      98,000   398,000

                  Total Expenditures...................................................................................   19,028,000

Excess (Deficiency) of Revenues over Expenditures ...............................................     (2,728,000)

Other Financing Sources (Uses):

       Proceeds from Sale of Capital Assets................................................... 523,000

       Transfer from Debt Service Funds.......................................................... 90,000                              

       Transfer to Debt Service Funds.......................................................... (100,000)

Total Other Financing Sources and Uses....................................................   513,000

Net Change in Fund Balance.....................................................................................               (2,215,000)

Fund Balance, January 1............................................................................................                4,750,000

Fund Balance, December 31......................................................................................             $ 2,535,000

Issuance of short-term notes payable does not change the fund balance of a governmental fund because the note payable is a fund liability.