Question

Jefferson County’s General Fund began the year 2017 with the following account balances:

	Debits		Credits
Cash	$132,348
Taxes Receivable	47,220
Allowance for Uncollectible Taxes			$ 1,570
Supplies	660
Deferred Inflows—Property Taxes			21,000
Wages Payable			900
Fund Balance			156,758
Totals	$180,228		$180,228

During 2017, Jefferson experienced the following transactions:

The budget was passed by the County Commission, providing estimated revenues of $285,000 and appropriations of $235,000 and estimated other financing uses of $40,000.

Encumbrances totaling $4,800 outstanding at December 31, 2016, were re-established.

The Deferred Inflows—Property Taxes at December 31, 2016, is recognized as revenue in the current period.

Property taxes in the amount of $290,000 were levied by the County. It is estimated 0.5 percent (1/2 of 1 percent) will be uncollectible.

Property tax collections totaled $263,400. Accounts totaling $1,020 were written off as uncollectible.

Encumbrances were issued for supplies in the amount of $37,100.

Supplies in the amount of $40,500 were received. Jefferson County records supplies as an asset when acquired. The related encumbrances for these items totaled $41,000 and included the $4,800 encumbered last year. The County paid $37,800 on accounts payable during the year.

The County contracted to have alarm systems (capital assets) installed in the administration building at a cost of $46,000. The systems were installed and the amount was paid.page 115

Paid wages totaling $135,900, including the amount payable at the end of 2016. (These were for general government operations.)

Paid other general government operating items of $7,600.

The General Fund transferred $43,000 to the debt service fund in anticipation of bond interest and principal payments.
Additional Information

Wages earned but unpaid at the end of the year amounted to $1,050.

Supplies of $350 were on hand at the end of the year. (Supplies are used for general government operations.)

A review of property taxes receivable indicates that $22,000 of the outstanding balances would likely be collected more than 60 days after year-end and should be deferred.

Required:

Use the Excel template provided on the textbook website to complete the following requirements. A separate tab is provided in Excel for the following items:

Prepare journal entries to record the information described in items 1 to 14. Classify expenditures in the General Fund as either General Government or Capital Outlay. Make entries directly to these and the individual revenue accounts; do not use subsidiary ledgers.

Post these entries to T-accounts.

Prepare closing journal entries; post to the T-account provided. Classify fund balances assuming there are no restricted or committed net resources and the only assigned net resources are the outstanding encumbrances.

Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund for the year ending 2017. Use Excel formulas to calculate the cells shaded in blue.

Prepare a Balance Sheet for the General Fund as of December 31, 2017.

Answer 1