Fluent Essays

? The town has three primary governmental functions: General Government, Public Safety, and Public Works. The Town’s is about to begin the 2017 fiscal year (FY 2017) set to begin April 1, 2016 and ending March 31, 2017. Instructions: For each question below, provide the journal entry(ies), explanation, or calculation for each selected transaction below. Unless otherwise indicated, each journal entry(ies) should be for the Town of Juno’s General Fund for fiscal year 2017 (FY 2017). No subsidiary journal entries will be required. 3/31/16. Calculate the unreserved fund balance in the General Fund. Show your computations to receive credit:4/1/16 The Town of Juno’s city council and mayor approved the fiscal year 2017 budget with estimated revenues of $383,840, unallotted appropriations of $801,300, estimated other financing uses of $38,500 and estimated other financing sources of $190,000. 1. Journalize the adoption of the fiscal year 2017 budget in the general fund:2. Briefly explain if there exists sufficient fund balance to adopt this budget? Is this a deficit budget/surplus budget? (No less than three (3) sentences, supported by calculations):3. On 4/2/16, the Town of Juno allotted approximately 15\% of the annual appropriations to the various agencies for the beginning of the fiscal year. Journalize the entry in the general fund to record the allocation of the allotment:4/20/16. $96,000 of the balance in vouchers payable were paid in cash; journalize the payment at the governmental activities (government-wide) level: 4/22/16. Goods ordered in FY 2016 that were outstanding at the end of that fiscal year were received on 4/22/16 in FY 2017. The estimated cost of the goods received on this date was $54,321. The invoice cost of the goods was $54,398. 1. Journalize the entry to record the receipt of the FY 2016 goods in the general fund: 2. Journalize the entry in the General Fund to record the invoice cost of the goods in FY 2017:5/2/16. Revenues were received in cash totaling $112,200 (charges for services: $68,000 General Government, $12,500 Public Safety, and $31,700 Public Works): 1. Journalize the entry to the general fund:2. Journalize the governmental activities (government-wide) entry:6/12/16. Purchase orders were issued to acquire various goods for FY 2017 with estimated costs as follows: General Government                              $149,200Public Safety                                                  54,318 Public Works                                                  29,374                                                                     $232,892Journalize the purchase orders in the general fund: 6/20/16. Collected 90\% of the property taxes receivable that were assessed during the previous fiscal year (FY 2016) (round to the nearest dollar) (Hint: Look at the Trial Balance). Journalize the collection of the taxes in the general fund:6/21/16. Assume the remaining balance of taxes receivable are delinquent. Journalize the delinquency in the general fund:6/22/16. The delinquent taxes were immediately assessed interest and penalties totaling $2,900, of which $300 are estimated as uncollectible. Journalize the assessed interest and penalties in the general fund: 6/30/16. Annual property taxes for FY 2017 are levied at $260,000, with estimated uncollectible taxes at 3\%. 1. Calculate the gross property tax levy (round to the nearest dollar): 2. Journalize the FY 2017 property tax levy in the governmental activities (government-wide level): 7/1/16. The Town of Juno, NJ borrowed $50,000 from First National Bank, N.A. in anticipation of property tax collections. Interest is 5\% per annum on the note. The note is expected to be paid back within three months. Journalize the entry to record the receipt of the proceeds in the general fund:7/5/16. Payroll is journalized in the amount of $280,100 with $58,400 in federal tax withholdings ($21,428 of this amount are the employee’s share of FICA taxes) and $11,204 in NJ state tax withholdings. Journalize the payroll accrual in the general fund: 7/11/16. Journalize the payment of the vouchers for the employee’s net pay in the general fund: 7/12/16. In the general fund, journalize the employer’s required FICA tax match owed to the federal government from the 7/5/13 payroll (do not credit Vouchers Payable): 7/16/16. Received only part of the 6/12/16 order for General Government, while 100\% of the orders for Public Safety and Public Works were received. Actual costs and estimated costs below of the order received:                                                       Actual Cost                            Estimated CostGeneral Government                  $126,940                                  $126,820Public Safety                                   54,274                                       54,318Public Works                                   28,950                                       29,374                                                        $210,164                                   $210,5121. Journalize the receipt of the order in the general fund: 2. Journalize the actual expenditure and liability in the general fund:3. Journalize the actual expenditure and liability in the governmental activities (government- wide) journal: 8/1/16. The Town of Juno allotted approximately 40\% of the remaining balance of annual appropriations to the various agencies. Journalize the entry in the general fund to record the allocation of this second allotment: 8/12/16. The Town of Juno issued a note with the proceeds used to finance the cost of acquiring two (2) emergency vehicle units costing $94,000 each. 1. Journalize the 8/12/16 issuance of the note in the general fund: 2. Journalize the 8/12/16 issuance of the note in the governmental activities (government-wide) journal:8/14/16. Issued a purchase order for the two (2) emergency vehicle units. The estimated cost was $94,000 per vehicle. The vehicles are custom ordered and will not be received until the end of the fiscal year. Journalize the entry in the general fund to record the issuance of the purchase order: 10/1/16. The Town of Juno, NJ repaid the tax anticipation note (issued on July 1) in full, including interest. Prepare the journal entry in the governmental activities (government-wide) journal (round to the nearest dollar): 10/15/16. Approximately $4,192 of the delinquent taxes recorded on 6/21/16 from the previous fiscal year were deemed uncollectible by the Town of Juno Tax Assessor. Interest and penalties of $100 are attached to the delinquent taxes. These taxes and associated interest and penalties have been approved for a write-off. Journalize the write-off of these delinquent taxes and the interest and penalties in the general fund: 10/19/16. The Town of Juno realized that revenues are slowing due to economic conditions. While this might be only a short-run impact, the city council and mayor did not want to chance the possibility of lesser-than-expected revenues. Therefore, the Town reduced estimated revenues by $10,000. It also reduced unallotted appropriations by the same amount (ignore the impacted programs/functions). Journalize the entry in the general fund to record this budget adjustment:11/8/16. The Town of Juno was pleased to hear that it received a $50,000 grant from the U.S. Department of Agriculture to study the “dating” habits of small town teens. A Special Revenues Fund was created (ignore budget adoption). The grant requires that Juno expend the monies for the grant prior to seeking reimbursement (eligibility requirement must be satisfied). 1. Assume Juno spends $50,000 on the study. Journalize the entry in the Special Revenues Fund to record the expenditure and liability (ignore encumbrances): 2. Juno then mails the U.S. Department of Agriculture the receipts spent on the grant; ten days later, the Town of Juno received a check for $50,000. Journalize the receipt of the grant proceeds in the Special Revenues Fund: