PROBLEM 6: Following is a pre-closing trial balance of a village's General Fund at December 31,...

PROBLEM 6:

Following is a pre-closing trial balance of a village's General Fund at December 31, 2019. The amount shown as Fund balance (unassigned) has not changed since the year started. The amount shown as appropriations includes the amounts appropriated for transfers. Property tax invoices are mailed out on January 10 and are due to be paid on February 10. Property owners that have not paid their taxes are classified as delinquent on March 10.

	Debits	Credits
Cash	$4,000
Property taxes receivable, delinquent	22,000
Allowance for uncollectible property taxes, delinquent		$5,000
Salaries payable		6,000
Due to Water Enterprise Fund		3,000
Accounts payable		16,000
Fund balance (unassigned)		3,000
Property tax revenues		250,000
Sales tax revenues		40,000
Expenditures - salaries	220,000
Expenditures - other than personal services	23,000
Expenditures - utilities	14,000
Transfer to Debt Service Fund	30,000
Transfer to Water Enterprise Fund	10,000
Estimated revenues (total)	297,000
Appropriations (total)
Budgetary fund balance	3,000
Totals	$623,000	$623,000

Based on the information contained in the foregoing trial balance, answer the following questions.

When the budget was adopted, what budgetary results did the village anticipate? (Assume the budgetary amounts shown in the trial balance represent the budget as originally adopted by the village.)
What were the results of operations for the year? Did the fund balance increase or decrease as a result of the year's activities, and by how much? How much will the amount of the unassigned fund balance be after the books are closed?
Based on your analysis of the data, what appears to be the major cause (or causes) of the difference between the anticipated and the actual operating results?
Discuss at least two possible reasons for the transfers to the Debt Service Fund and the Water Enterprise Fund.
Discuss at least two possible reasons for the amount shown as Due to Water Enterprise Fund.

PLEASE ANSWER THE ENTIRE PROBLEM CORRECTLY FOR A THUMBS UP

Solutions

Expert Solution

ekkarill92 answered 6 months ago

Next > < Previous

Related Solutions

Following is a pre-closing trial balance of a village's General Fund at December 31, 2019. The...

The following is a pre-closing trial balance for the Village of Lake Augusta’s general Fund as...

The following is a pre-closing trial balance for the Village of Lake Augusta’s general Fund as of December 31, 2017: Debits Credits Accounts payable 6,800 Appropriations 160,000 Budgetary fund balance 38,000 Budgetary fund balance: reserve for encumbrances 5,000 Cash 116,500 Deferred revenues: property taxes 3,000 Due to other funds 5,000 Encumbrances 5,000 Estimated other financing sources 8,000 Estimated other financing uses 10,000 Estimated revenues 200,000 Estimated uncollectible taxes 2,000 Expenditures 154,000 Fund balance 54,700 Other financing sources 10,000 Other financing...

Following is the post-closing trial balance of the General Fund of Leisure City as at December...

Following is the post-closing trial balance of the General Fund of Leisure City as at December 31, 2012: Cash $300,000 Property taxes receivable—delinquent 50,000 Due from state government 80,000 Supplies and materials 30,000 Salaries payable $ 25,000 Deferred revenues—property taxes 20,000 Nonspendable fund balance 30,000 Assigned fund balance 15,000 Unassigned fund balance 370,000 The following additional information is provided regarding the city’s accounting policies and other matters: 1. Only items charged to the appropriation “Supplies and materials—other programs” are encumbered....

The trial balance for the General Fund of the City of Topeka as of December 31,...

The trial balance for the General Fund of the City of Topeka as of December 31, 2017 is presented below: CITY OF TOPEKA The General Fund Adjusted Trial Balance - December 31, 2017 Debit Credit Cash 216,000 Property Tax Receivable 31,000 Estimated Uncollectible Taxes 8,000 Due from Trust Fund 41,000 Vouchers Payable 55,000 Reserve for Encumbrances 20,000 Unassigned Fund Balance 205,000 288,000 288,000 Transactions for the year ended December 31, 2018 are summarized as follows: 1. The City Council adopted...

The Village of Seaside Pines prepared the following General Fund Trial Balance as of December 31,...

The Village of Seaside Pines prepared the following General Fund Trial Balance as of December 31, 2017, the last day of its fiscal year. Control accounts are used for budgetary entries. Debits Credits Accounts Payable $ 19,000 Allowance for Uncollectible Taxes 12,000 Appropriations (Control) 494,000 Budgetary Fund Balance 5,000 Cash $175,000 Deferred Inflows—Property Taxes 38,000 Due from Capital Projects Fund 5,000 Due to Debt Service Fund 17,000 Encumbrances 63,000 Estimated Revenue (Control) 534,000 Estimated Other Financing Uses (Control) 35,000 General Government...

The following is Baker Co.'s Pre-Closing Trial Balance as of December 31, 2017. Baker's accounting period...

The following is Baker Co.'s Pre-Closing Trial Balance as of December 31, 2017. Baker's accounting period is a month, thus the balances in the temporary accounts are for the month of December 2017. Account Debit Credit Cash 10,000 Accounts Receivable 25,000 Inventory 40,000 Supplies 5,000 Equipment 100,000 Accumulated Depreciation 30,000 Accounts Payable 12,000 Note Payable 13,000 Interest Payable 3,000 Unearned Revenue 8,000 Dividends Payable 7,000 Common Stock 10,000 Retained Earnings 46,000 Sales Revenue 193,000 Cost of Goods Sold 78,000 Depreciation...

The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation.

The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation.Account TitleDebitsCreditsCash$40,000 Accounts receivable34,000 Inventories75,000 Prepaid rent for next 8 months16,000 Marketable securities (short term)10,000 Machinery1,45,000 Accumulated depreciation - machinery 11,000Patent (net of amortization)83,000 accounts payable 8,000wages payable 4,000Taxes payable 32,000Bonds payable (due in 10 Years) 2,00,000Commons stock 1,00,000Retained Earnings 48,000Totals403,000403,000Prepare a classified balance sheet for Jackson Corporation at December 31,2018

The following is a December 31, 2024, post-closing trial balance for the Jackson Corporation.

The following is a December 31, 2024, post-closing trial balance for the Jackson Corporation.Account TitleDebitsCreditsCash$ 59,000 Accounts receivable53,000 Inventory94,000 Prepaid rent (for the next 8 months)35,000 Investment in equity securities (short term)29,000 Machinery240,000 Accumulated depreciation $ 30,000Patent (net)98,000 Accounts payable 17,500Salaries payable 13,500Income taxes payable 51,000Bonds payable (due in 10 years) 260,000Common stock 170,000Retained earnings 66,000Totals$ 608,000$ 608,000Required:Prepare a classified balance sheet for Jackson Corporation at December 31, 2024, by properly classifying each of the accounts.Note: Amounts to be deducted...

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31,...

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2017. Account Title Debits Credits Cash 4,400 Accounts receivable 1,400 Inventory 4,400 Equipment 10,400 Accumulated depreciation—equipment 2,900 Accounts payable 2,400 Common stock 9,000 Retained earnings 6,300 Sales revenue 0 Cost of goods sold 0 Salaries and wages expense 0 Rent expense 0 Advertising expense 0 Totals 20,600 20,600 The following transactions occurred during January 2018: Jan. 1 Sold merchandise for cash, $2,900. The cost...

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31,...

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2017. Account Title Debits Credits Cash 5,000 Accounts receivable 2,000 Inventory 5,000 Equipment 11,000 Accumulated depreciation—equipment 3,500 Accounts payable 3,000 Common stock 10,000 Retained earnings 6,500 Sales revenue –0– Cost of goods sold –0– Salaries and wages expense –0– Rent expense –0– Advertising expense –0– Totals 23,000 23,000 The following transactions occurred during January 2018: Jan. 1 Sold merchandise for cash, $3,500. The...

Subjects