Question

Please record the following transactions in the journal below for Cardinal County's general fund.

1 At the beginning of the fiscal year the budget is recorded as follows: budgeted tax revenue $6,000,000, budgeted

expenditures $5,900,000, budgeted transfers in from other funds $150,000.

2 Property taxes are levied, $5,600,000, and it is estimated that 3% will be uncollectible.

3 Paid wages, $400,000.

4 Issued purchase orders for supplies budgeted (estimated) to cost $5,000. Amounts were encumbered.

5 Later, $3,500 (budgeted cost) of the $5,000 supplies are received, and the actual cost was $3,900. A payable was recorded.

6 A couple weeks after #5 the remaining $1,500 (budgeted cost) of the $5,000 are received, and the actual cost was $1,350. A

payable was recorded.

7 Received $4,200 from a taxpayer who was paying next year's property taxes in advance.

8 Received $3,000,000 of this year's taxes, cash, from taxpayers.

9 Wrote-off as uncollectible $26,000 of property taxes.

10 Was awarded and received $10,000 cash from a grant to build a waterpark at a county playground. The cash cannot be spent,

however, until Cardinal County renovates the playground parking area.

Answer 1

The journal enteries for Cardinal County's general fund are as follows:

JOURNAL	Dr.	Cr.
1. Budgeted Tax Revenue Budget transfers in from other funds Budget expenditures Appropriations	6,000,000 150,000	5,900,000 250,000
2. Tax Receivables- Current Estimated uncollected-tax General Revenues- Property Tax	5,600,000	168,000 5,432,000
3. Wages Cash	400,000	400,000
4. Encumbrances Reserve for Encumbrances	5,000	5,000
5. Reserve for Encumbrances Expenditures Encumbrances Vouchers Payable	3,500 3,900	3,500 3,900
6. Reserve for Encumbrances Expenditures Encumbrances Vouchers Payable	1500 1350	1500 1350
7. Cash Taxes collected in advance	4200	4200
8. a. Cash Taxes-Receivables-current b. Tax receivables- Delinquent Estimated uncollected- current tax Tax- Receivables- current Estimated uncollected- Delinquent tax	3,000,000 2,600,000 168,000	3,000,000 260,000 168,000
9. Estimated uncollectible Delinquent taxes Tax-receivables - Delinquent	168,000	168,000
10. Cash Deffered Revenue	10,000	10,000