Question

The Town of Tyler approved the following general fund budget for the fiscal year July 1, 2011, to June 30, 2012: TOWN OF TYLER GENERAL FUND BUDGET SUMMARY FOR THE YEAR JULY 1, 2011 TO JUNE 30, 2012 Revenue Sources Taxes $250,000 Licenses and permits 20,000 Intergovernmental revenue 40,000 Charges for services 60,000 Fines and forfeits 15,000 Rents and royalties 10,000 Miscellaneous revenues 5,000 Total budgeted revenues $400,000 TOWN OF TYLER GENERAL FUND BUDGET SUMMARY FOR THE YEAR JULY 1, 2011 TO JUNE 30, 2012 Expenditures Current services General government $45,000 Public safety 140,000 Highways and streets 90,000 Sanitation 55,000 Health and welfare 20,000 Recreation 30,000 Capital outlays 15,000 Total appropriations $395,000 Budgeted increase in fund balance $5,000 The after-closing trial balance of the Town of Tyler general fund at June 30, 2011, shows the following ledger account balances: Debits Cash 31,000 Tax receivable—delinquent 15,000 Accounts receivable 3,000 Supplies inventory 6,000 Total debits $ 55,000 Credits Allowances for uncollectible taxes—delinquent 1,000 Vouchers payable 14,000 Note payable (short-term) 15,000 Fund balance—committed 9,000 Fund balance—nonspendable 6,000 Fund balance—unassigned 10,000 Total credits $ 55,000

1. Prepare T account balances for the following transactions: a. The treasurer of Tyler sends out property tax bills of $200,000; 1% is considered uncollectible b. Current property taxes of $176,000 and past-due taxes of $14,000 were collected. c. A specifi c property tax bill ($1,000) is determined to be uncollectible. d. Fees in the amount of $20,000 are collected for hunting licenses. e. Other revenues in the amount of $200,000 are collected. f. The payroll for salaries of $20,000 is vouchered for payment. g. Playground equipment expected to cost $15,000 is ordered. h. The playground equipment is received and has an actual cost of $14,000. i. Tyler received equipment that had been ordered in the previous fiscal year. The actual cost was $9,500 j. Supplies in the amount of $11,000 were ordered. By year-end, only $5,000 worth of these supplies has been received The consumption method is used. k. The note payable that was outstanding at June 30, 2011, becomes due and is paid. l. Various expenditures are paid throughout the year totaling $348,040. m. Supplies in the amount of $3,000 are on hand at year-end. n. Assume that uncollected taxes on June 30, 2011, are past due. o. Closing entries are made.

Answer 1

Town of Tyler
General Fund Budget for July 1, 2011 to June 30, 2012
Revenue	$	Expenditure	$
Taxes	2,50,000	Curr services general govt	45,000
Licences and permits	20,000	Public safety	1,40,000
Intergovernmental revenue	40,000	Highways and streets	90,000
Charges for services	60,000	Sanitation	55,000
Fines and forfeits	15,000	Health and welfare	20,000
Rents and royalties	10,000	Recreation	30,000
Miscellaneous revenues	5,000	Capital outlays	15,000
		Bugeted increase in fund balance	5,000
	4,00,000		4,00,000
Trial Balance as on June 30, 2011
Debits	$	Credits	$
Cash	31,000	Allowances for uncollectible taxes-delinquent	1,000
Tax receivable-delinquent	15,000	Vouchers payable	14,000
Accounts receivable	3,000	Note payable (short term)	15,000
Supplies inventory	6,000	Fund balance - committed	9,000
		Fund balance - nonspendable	6,000
		Fund balance - unassigned	10,000
	55,000		55,000
Q1. Prepare T account balances for the given transactions
Ans. All amounts are in $
Assets
Accounts Receivables (Property tax bills raised)	2,00,000	A/cs receivables (Allowance for uncollectible taxes)	2,000
Playground equipment purchased	14,000	A/cs receivables (Tax bill determined uncollectible)	1,000
Equipment purchased	9,500	Cash/Bank (note payable paid)	15,000
Supplies - ordered	11,000	Cash/Bank (various expenses paid)	3,48,040
Cash/Bank (Taxes collected - current)	1,76,000	Accounts Receivable (taxes collected)	1,90,000
Cash/Bank (Taxes collected - past due)	14,000	Cash/Bank (Playground equipment purchased)	14,000
Cash/Bank (Hunting license fees collected)	20,000	Cash/Bank (Equipment purchased)	9,500
Cash/Bank (Other revenues collected)	2,00,000	Cash/Bank (Payment for supplies received)	5,000
		Supplies - consumed	2,000
Liabilities
Note payable (short term) paid	15,000	Accounts Payable - Supplies ordered	11,000
Accounts Payable (payment for supplies received)	5,000	Salaries Payable	20,000
		Excess of revenue over expenditure	46,960
Revenues
To Excess of revenue over expenditure	46,960	Property Taxes bills raised	2,00,000
		Hunting Licence fees	20,000
		Other revenues	2,00,000
		Total revenue	4,20,000
Expenses
Salaries	20,000
Supplies Consumed	2,000
Various expenditure paid	3,48,040
Allowance for uncollectible taxes	2,000
Uncollectible bill	1,000
Total expenditure	3,73,040