Question

The City of Castleton’s General Fund had the following post-closing trial balance at June 30, 2019, the end of its fiscal year:

	Debits				Credits
Cash	$	418,000
Taxes Receivable—Delinquent		590,000
Allowance for Uncollectible Delinquent Taxes					$	196,000
Interest and Penalties Receivable		26,980
Allowance for Uncollectible Interest and Penalties						11,860
Inventory of Supplies		16,800
Vouchers Payable						155,500
Due to Federal Government						66,490
Deferred Inflows of Resources—Unavailable Revenues						402,000
Fund Balance—Nonspendable—Inventory of Supplies						16,800
Fund Balance—Unassigned						203,130
	$	1,051,780			$	1,051,780

Record the effect of the following transactions on the General Fund and governmental activities for the year ended June 30, 2020.

Transaction	Fund / Governmental Activties	General Journal	Debit	Credit
1. The budget for FY 2020 provided for General Fund estimated revenues totaling $3,280,000 and appropriations totaling $3,233,000.
1	General Fund
	Governmental Activities
2. The city council authorized temporary borrowing of $570,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 5 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses—General Government in the governmental activities journal).
2	General Fund
	Governmental Activities
3. The property tax levy for FY 2020 was recorded. Net assessed valuation of taxable property for the year was $41,000,000, and the tax rate was $6 per $100. It was estimated that 3 percent of the levy would be uncollectible.
3	General Fund
	Governmental Activities
4. Purchase orders and contracts were issued to vendors and others in the amount of $2,130,000.
4	General Fund
	Governmental Activities
5. $2,150,000 of current taxes, $390,270 of delinquent taxes, and $21,270 of interest and penalties were collected. The delinquent taxes and associated interest and penalties were collected more than 60 days after the prior year-end.
		Record the $2,150,000 of current taxes, $390,270 of delinquent taxes, and $21,270 of interest and penalties collected.
5a	General Fund
5b		Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end.
5c	Governmental Activities	Record the $2,150,000 of current taxes, $390,270 of delinquent taxes, and $21,270 of interest and penalties collected.
5d		Record the delinquent taxes and associated interest and penalties collected more than 60 days after the prior year-end.
6. Additional interest and penalties on delinquent taxes were accrued in the amount of $39,130, of which 30 percent was estimated to be uncollectible.
6	General Fund
	Governmental Activities
7. Because of a change in state law, the city was notified that it will receive $94,000 less in intergovernmental revenues than was budgeted.
7	General Fund
	Governmental Activities
8. Delinquent taxes of $13,003 were deemed uncollectible and written off. The associated interest and penalties of $968 also were written off.
8	General Fund
	Governmental Activities
9. Total payroll during the year was $889,490. Of that amount, $69,690 was withheld for employees’ FICA tax liability, $110,710 for employees’ federal income tax liability, and $35,100 for state taxes; the balance was paid to employees in cash.
9	General Fund
	Governmental Activities
10. The employer’s FICA tax liability was recorded for $69,690.
10	General Fund
	Governmental Activities
11. Revenues from sources other than taxes were collected in the amount of $954,000.
11	General Fund
	Governmental Activities
12. Amounts due the federal government as of June 30, 2020, and amounts due for FICA taxes and state and federal withholding taxes during the year were vouchered.
12	General Fund
	Governmental Activities
13. Purchase orders and contracts encumbered in the amount of $2,058,040 were filled at a net cost of $2,057,570, which was vouchered.
13a	General Fund	Record the encumbrances outstanding for 2020.
13b		Record the total expenditures against vouchers payable for 2020.
13c	Governmental Activities	Record the total expenses against vouchers payable for 2020.
14. Vouchers payable totaling $2,371,660 were paid after deducting a credit for purchases discount of $8,730 (credit Expenditures).
14	General Fund
	Governmental Activities
15. The tax anticipation note of $570,000 was repaid.
15	General Fund
	Governmental Activities
16. All unpaid current year’s property taxes became delinquent. The balances of the current taxes receivables and related uncollectibles were transferred to delinquent accounts. The City uses the 60-day rule for all revenues and does not expect to collect any delinquent property taxes or interest and penalties in the first 60 days of the next fiscal year.
16a	General Fund	Record the delinquent amount of unpaid property taxes.
16b		Record the adjustment for the delinquent amount of tax against the allowance.
16c		Record the deferred inflow of resource
16d	Governmental Activities	Record the delinquent amount of unpaid property taxes.
16e		Record the adjustment for the delinquent amount of tax against the allowance.
16f		Record the deferred inflow of resource
17. A physical inventory of materials and supplies at June 30, 2020, showed a total of $20,500. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Inventory of Supplies was debited in the governmental activities journal. Recorded entry to reclassify the fund balance.)
17	General Fund
	Governmental Activities

Answer 1