Sonenaly Hemsouvanh

ACCT2050: Governmental and Not-for-Profit Accounting

Instructor: Shauna Hatfield
Semester: Spring 2016

Continuing Problem 1
Chapter 9
Part A: The following activities are fund types of Coco city.
1. The account for its day-to-day operating activities is General fund.
2. To acquire or construct major capital assets is Capital Projects Fund.
3. To accumulate resources to service long-term debt is Debt Service Fund.
4. To operate a municipal swimming pool Enterprise Fund.

Part B: Budgetary accounting for General Fund.

a. The following transactions are records of opening balances.
No entries required for opening balances. All opening balances will be recorded in Taccounts opening balances.
b. The following transactions are journal entries of Coco city.
1. Estimated revenues-property taxes

400,000

Estimated revenues-sales taxes

70,000

Estimated revenues-parks admission fees

10,000

Appropriations-police salaries

300,000

Appropriations-police supplies

40,000

Appropriations-parks salaries

80,000

Appropriations-transfer to Debt Service Fund

45,000

Budgetary fund balance

15,000

To record budgetary fund.

2. Encumbrances-police supplies

35,000

Encumbrances-police supplies

4,000

Budgetary fund balance reserved for encumbrance

To record encumbrance for two purchase of police supplies.

Page 1 of 16

39,000

Sonenaly Hemsouvanh
3. Budgetary fund balance reserved for encumbrances

35,000

Encumbrances-police supplies

35,000

To reverse encumbrance for purchase of police supplies.

Expenditures-police supplies

33,000

Voucher payable

33,000

To record voucher payable.

4. Voucher payable

33,000

Cash

33,000

To record payment of police supplies.

c. The following entries are T-accounts for general Fund:

(1)

Estimated
Revenues-property taxes
400,000

(1)

Appropriations-transfer
45,000 (1)

Cash
40,000
7,000

33,000 (4)

(1)

Appropriations-supplies
40,000 (1)

Appropriations-police salaries
300,000 (1)

Budgetary fund balance

reserved for encumbrances
(3)
35,000
39,000
4,000

GENERAL LEDGER
Estimated
Revenues-sales taxes
70,000

Estimated
Revenues-parks admin fees
10,000

Appropriations-parks salaries
80,000

Budgetary fund balance

Encumbrances-police supplies
15,000 (1) (2)
35,000
35,000
(2)
4,000
4,000

(3)

Expenditures-police supplies
33,000
(4)

Unassigned fund balance

5,000

Page 2 of 16

Voucher payable
35,000
33,000
33,000

Sonenaly Hemsouvanh
d. The appropriation ledger of police supplies is below:
Appropriation Ledger (Police Supplies)
Date

Item

Appropriation

Encumbrances

Encumbrances

Credit

Debit

Credit

Expenditures

Available
Appropriation
Credit

Budget

40,000

40,000

Order

35,000

5,000

Order

4,000

1,000

Order receipt

Record invoice

35,000

36,000
33,000

3,000

Part C: Other General Fund transactions

The following transactions are the journal entries of Coco City.
1. Property taxes receivable

404,000

Allowance for refunds and uncollectible taxes

4,000

Revenues-property taxes

400,000

To record levy of property taxes and uncollectible taxes.

2. Allowance for refunds and uncollectible taxes

3,000

Property taxes receivable

3,000

To record written off uncollectible account.

Cash

370,000
Property taxes receivable

370,000

To record collections of property taxes.

3. Allowance for refunds and uncollectible taxes

1,000

Revenues-property taxes

1,000

To reverse uncollectible taxes.

4. Property taxes receivable-delinquent

31,000

Property taxes receivable

31,000

To reclassify unpaid taxes as delinquent.

Revenues-property taxes

10,000

Deferred property taxes revenues

Page 3 of 16

10,000

Sonenaly Hemsouvanh
To record deferral taxes not to be collected after February 2014.
5. Cash

68,000
Revenues-sales taxes

68,000

To record collections of sales taxes

Sales taxes receivable

6,000

Revenues-sales taxes

6,000

To accrue additional sales taxes.

6. Cash

18,000
Revenues parks admissions fees

18,000

To record parks admissions fees

7. Voucher payable

35,000

Cash

35,000

To record payment of voucher.

8. Expenditures-police salaries

290,000

Expenditures-parks salaries

70,000

Cash

360,000

To record payments of salaries.

9. Expenditures-salary police department

8,000

Expenditures-salary-parks department

5,000

Salary payable

13,000

To accrue salary payable.

10. No entries required.

Page 4 of 16

Sonenaly Hemsouvanh
The following is the T-accounts of other general funds.

(1)

(4)

Property taxes receivable

404,000
3,000 (2)
370,000 (2)
31,000 (4)
404,000
404,000
0

(2)
(3)

Property taxes receivable-delinquent Deferred property taxes revenues

31,000
10,000 (4)

Revenues-sales taxes
68,000 (5)
6,000 (5)
74,000

(7)

GENERAL LEDGER
Allowance for refunds and
and uncollectible taxes
3,000
4,000 (1)
1,000
4,000
4,000
0

Voucher payable
35,000

Expenditures-police salaries
290,000
8,000
298,000

Revenues-property taxes
10,000
400,000 (1)
1,000 (3)
10,000
401,000
391,000

Cash
(2)
(5)
(6)

Sales taxes receivable

6,000

(5)

(8)
(9)

(4)

370,000
68,000
18,000
456,000
61,000

35,000 (7)
360,000 (8)
395,000

Revenues-parks admissions fees

18,000 (6)

(8)
(9)

Expenditures-parks salaries
70,000
5,000
75,000

Salaries payable
13,000 (9)

Part D: Capital Projects Fund and Debt Service Fund transactions.

1. Capital Projects Fund:
Cash

500,000
Other financing sources-bond issued

500,000

To record issuance of bonds.

2. Capital Projects Fund:
Expenditures-police station

500,000

Cash

500,000

To record purchase of police station

3. General Fund:
Expenditures-transfer to Debt Service Fund
Cash

45,000
45,000

To record transfer to Debt Service Fund.

Page 5 of 16

Sonenaly Hemsouvanh
Debt Service Fund:
Cash

45,000
Transfer from General Fund

45,000

To record transfer from General Fund.

4. Debt Service Fund:
Expenditures-bond principal

25,000

Expenditures-bond interest

15,000

Matured bond principal payable

25,000

Matured bond interest payable

15,000

To record matured bond principal and interest payable.

5. Debt Service Fund:
Matured bond principal payable

25,000

Matured bond interest payable

15,000

Cash

40,000

To record payment of bond principal and interest.

The following accounts are the T-accounts of Capital Project, General, and Debt Service
Funds.
GENERAL LEDGER
Other financing sourcesbond issued
500,000 (1)

Capital Project Fund

Cash
(1)
500,000
500,000 (2)
0
General Fund
Transfer to Debt Service Fund
(3)
45,000

Debt Service Fund

Cash
(3)
45,000
5,000

(4)

Expenditures-police station
500,000

(4)

Expenditures-bond principal
25,000

Cash
45,000 (5)

Transfer from General Fund

45,000 (3)

40,000 (5)

Expenditures-bond interest
15,000

(2)

(5)

Matured bond principal payable

25,000
25,000 (4)
0

Page 6 of 16

(5)

Matured bond interest payable

15,000
15,000 (4)
0

Sonenaly Hemsouvanh

Part E: Enterprise Fund Transactions

1. No entry required because all opening balances will be recorded in T accounts.
2. Cash

70,000
Revenues

70,000

To record swimming pool admissions fees.

3. Salary expenses

8,000

Cash

8,000

To record salaries of lifeguard and clerk.

4. Bonds payable

40,000

Interest expense

24,000

Cash

64,000

To record payments of bonds payable and

interests (480,000*5%=24,000).
5. Depreciation expense

30,000

Accumulated depreciation-swimming pool

30,000

To record depreciation expense (600,000/20=$30,000).

The following is T-accounts of enterprise fund.
GENERAL LEDGER

(1)
(2)

(4)

Cash
5,000
70,000
75,000
3,000

Revenues
8,000 (3)
64,000 (4)
72,000

Bond payable
40,000
480,000 (1)
440,000

Accumulated depreciation
90,000 (1)
30,000 (5)
120,000

70,000 (2)

(4)

Interest expense
24,000

(1)

Swimming pool
600,000

Page 7 of 16

(3)

Salary expenses
8,000

(5)

Depreciation expense
30,000

Sonenaly Hemsouvanh

Part F: Preparation of fund financial statements:

Coco City
General Fund
Preclosing Trial Balance
December 31, 2013
Account

Debits

Credits

Budgetary Accounts
Estimated revenues-property taxes

$400,000

Estimated revenues-sales taxes

70,000

Estimated revenues-parks admission fees

10,000

Appropriations-police salaries

300,000

Appropriations-police supplies

40,000

Appropriations-parks salaries

80,000

Appropriations-transfer to Debt Service Fund

45,000

Budgetary fund balance

15,000

Encumbrances-police supplies

4,000

Budgetary fund balance reserved for encumbrances

4,000

Financial Accounts
Cash

23,000

Property taxes receivable-delinquent

31,000

Sales taxes receivable

6,000

Salaries payable

13,000

Deferred property tax revenues

10,000

Unassigned fund balance

5,000

Revenues-property taxes

391,000

Revenues-sales taxes

74,000

Revenues-parks admissions fees

18,000

Expenditures-police salaries

298,000

Expenditures-police supplies

33,000

Expenditures-parks salaries

75,000

Expenditures-transfer to Debt Service Fund

45,000

Total

$995,000

Page 8 of 16

$995,000

Sonenaly Hemsouvanh
Coco City
Debt Service Fund
Preclosing Trial Balance
December 31, 2013
Debits
Cash
Expenditures-bond principal
Expenditures-bond interest
Transfer from General Fund
Totals

Credits

$5,000
25,000
15,000
$45,000

45,000
$45,000

Debits

Credits

Coco City
Capital Project Fund
Preclosing Trial Balance
December 31, 2013

Expenditures-police station
Other financing sources-bond issued
Totals

$500,000
$500,000

500,000
$500,000

Coco City
Enterprise Fund
Swimming Pool
Preclosing Trial Balance
December 31, 2013
Debits
Cash
Swimming pool
Accumulated depreciation-swimming pool
Bond payable

Revenues
Salary expense
Interest expense
Depreciation expense
Net position
Totals

Credits

3,000
600,000
120,000
440,000

70,000
8,000
24,000
30,000
$665,000

Page 9 of 16

35,000
$665,000

Sonenaly Hemsouvanh
1. Governmental Funds Balance Sheet is as follows:
Coco City
Balance Sheet
Governmental Funds
December 31, 2013
General
Assets
Cash
Property taxes receivable-delinquent
Sales taxes receivable
Total assets
Liabilities
Salaries payable
Defered inflows of resources
Deferred property taxes revenues
Fund balance
Assigned
Unassigned
Total fund balance
Total liabilities , deferred inflows of resources,
and fund balances

23,000
31,000
6,000
60,000

13,000

Debt
Service

Capital
Project

Total

5,000

5,000

28,000
31,000
6,000
65,000
13,000

10,000

10,000

4,000
33,000
37,000
$

60,000

5,000

9,000
33,000
42,000

5,000
$

5,000

65,000

3. General Fund Budgetary Comparison Schedule is below:

Coco City
General Fund
Budgetary Comparison Schedule
For the year Ended December 31, 2013

Revenues
Property taxes
Sales taxes
Parks admissions fees
Total revenues
Expenditures
Police salaries
Police supplies
Parks salaries
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfer out to Debt Service Fund
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year

Original and
final budget

Actual

$ 400,000
70,000
10,000
480,000

$ 391,000
74,000
18,000
483,000

300,000
40,000
80,000
420,000
60,000

298,000
33,000
75,000
406,000
77,000

(45,000)
15,000
5,000
20,000

Page 10 of 16

(45,000)
32,000
5,000
$ 37,000

Variance
$

(9,000)
4,000
8,000
3,000
2,000
7,000
5,000
14,000
17,000

17,000
17,000

Sonenaly Hemsouvanh
2. Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund
Balances is as below:
Coco City
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2013
General
Revenues
Property taxes
Sales taxes
Parks admissions fees
Total revenues
Expenditures
Current:
Police salaries
Police supplies
Parks salaries
Debt service:
Principal
Interest
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Bond issued
Transfer in from General Fund
Transfer out to Debt Service Fund
Total other financing sources (uses)
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year

Debt
Service

Capital
Project

Total

$ 391,000
74,000
18,000
483,000

$ 391,000
74,000
18,000
483,000

298,000
33,000
75,000

298,000
33,000
75,000
25,000
15,000

406,000
77,000

40,000
(40,000)

500,000
500,000
(500,000)

500,000
45,000
(45,000)
(45,000)
32,000
5,000
$ 37,000

Page 11 of 16

45,000
5,000
$ 5,000

500,000
$
-

25,000
15,000
500,000
946,000
(463,000)

500,000
45,000
(45,000)
500,000
37,000
5,000
$ 42,000

Sonenaly Hemsouvanh
4. Proprietary funds statement of net position is below:
Coco City
Statement of Net Position
Enterprise Fund
December 31, 2013
Assets
Current assets:
Cash
Noncurrent assets
Swimming pool
Less, accumulated depreciation
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Current portion of revenue bonds payable
Noncurrent liabilities
Bonds payable
Total liabilities
Net position
Net invested in capital assets
Unrestricted
Total net position

3,000
600,000
120,000
480,000
483,000

40,000
400,000
440,000

40,000
3,000
43,000

5. Proprietary Funds Statement of Revenues, Expenditures, and Changes in Fund Net

Position is below.
Coco City
Enterprise Fund
Statement of Revenues, Expenses, and Changes in Fund Net Position
For the Year Ended December 31, 2013
Operating Revenues
$ 70,000
Operating expenses:
Salary expense
8,000
Depreciation expense
30,000
Total operating expense
38,000
Operating income
32,000
Nonoperating Expenses
Interest expense
24,000
Changes in net position
8,000
Total net position at beginning of year
35,000
Total net position at end of year
$ 43,000

Chapter 10:
1. Journal entries need to convert fund financial statements to government-wide financial
statements are as follows:

Page 12 of 16

Sonenaly Hemsouvanh
Capital asset adjustments
a.

Police station

500,000

Expenditures-capital outlay

500,000

To report capital asset (Transaction 2, Part D).

b.

Depreciation expense

10,000

Accumulated depreciation-police station

10,000

To record depreciation (Transaction 2, Part D)

Long-term debt adjustment
c.

Proceed of bond issued

500,000

Bonds payable

500,000

To record liability for long-term debt (Transaction 1, Part D).

d.

Bonds payable

25,000

Expenditures-bond principal

25,000

To reduce expenditure and record repayment liability (Transaction 4, Part D).

Revenue adjustments
e.

Deferred property tax revenues

10,000

Revenues-property taxes

10,000

To record property taxes on accrual basis (Transaction 4, Part C)

Expense adjustment
f.

Claims expense

4,000

Claims payable

4,000

To report claims payable (Transaction 10, Part C).

g.

Interest expense

7,125

Interest payable

7,125

To record interest payable for 3 months (475,000*6%*3/12), (Transaction 4, Part D)

Interfund transfer eliminations
h.

Transfers in

45,000

Transfers out

45,000

To eliminate transfers among governmental funds (Transaction 3, Part D).

Page 13 of 16

Sonenaly Hemsouvanh
Work sheet for preparing government-wide financial statements
Aggregated balances
of Fund statements
Debit

Adjustments

Credit

Debit

Credit

Adjusted balances
Debit

Cash

28,000

28,000

Property taxes receivable delinquent

31,000

31,000

6,000

6,000

Sales taxes receivable

Police station

a. 500,000

Accumulated depreciation

500,000
b. 10,000

Salaries payable

10,000

13,000

13,000

Interest payable

g.

Bonds payable

d. 25,000

Claims payable

7,125

7,125

c.500,000

475,000

f.

Deferred property tax revenues

10,000

Fund balance- beginning

Credit

4,000

4,000

e. 10,000

5,000

5,000

Revenues:
Property taxes

391,000

e. 10,000

401,000

Sales taxes

74,000

74,000

Parks admission fees

18,000

18,000

Expenditures:
Police salaries

298,000

298,000

Police supplies

33,000

33,000

Parks salaries

75,000

75,000

Bond principal

25,000

Bond interest

15,000

Capital outlay

500,000

d. 25,000
g.

7,125

22,125
a.500,000

Depreciation expense

b. 10,000

Claims expenses

f.

10,000

4,000

4,000

Other financing items:

Proceeds from bonds
Transfers in
Transfers out
Totals

500,000

c.500,000

45,000

h. 45,000

45,000
1,056,000

h. 45,000
1,056,000

1,100,125

Page 14 of 16

1,100,125

1,007,125

1,007,125

Sonenaly Hemsouvanh

Coco City
Statement of Net Position
December 31, 2013

Assets
Current assets:
Cash
Property taxes receivable-delinquent
Sales taxes receivable
Total current assets
Noncurrent assets:
Capital assets
Less, accumulated depreciation
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Salaries payable
Interest payable
Current portion of bonds payable
Total current liabilities
Noncurrent liabilities:
Bonds payable
Claims payable
Total noncurrent liabilities
Total liabilities
Net Position
Invested in capital assets
Unrestricted
Total net position

Governmental
Activities

Business-type
Activities

28,000
31,000
6,000
65,000
500,000
10,000
490,000
555,000

13,000
7,125
25,000
45,125

3,000

Total

3,000

31,000
31,000
6,000
68,000

600,000
120,000
480,000
483,000

1,100,000
130,000
970,000
1,038,000

40,000
40,000

13,000
7,125
65,000
85,125

450,000
4,000
454,000
499,125

400,000
400,000
440,000

875,000
4,000
854,000
939,125

15,000
40,875
55,875

40,000
3,000
43,000

55,000
43,875
98,875

Page 15 of 16

Sonenaly Hemsouvanh

Coco City
Statement of Activities
Year Ended December 31, 2013

Charges for
Services

Expenses
Governmental activities:
Police salaries
Police supplies
Parks salaries
Depreciation
Claims
Interest on long-term debt
Total governmental activities
Business-type activities:
Swimming pool
Total government and business
type activities
General revenues:
Property taxes
Sales taxes
Total general revenues
Change in net position
Net position, beginning
Net position, ending

Net expense or revenue

Governmental
Business
Activities
Activities

$298,000
33,000
75,000
10,000
4,000
22,125
$ 442,125

____ __
$ 18,000

$ (298,000)
(33,000)
(57,000)
(10,000)
(4,000)
(22,125)
$ (424,125)

62,000
504,125

70,000
88,000

___
_
(424,125)

18,000

401,000
74,000
475,000
50,875
5,000
$ 55,875

Page 16 of 16

.
Total

$ (298,000)
(33,000)
(57,000)
(10,000)
(4,000)
(22,125)
$ (424,125)

8,000
8,000

8,000
(416,125)

__
8,000
35,000
$ 43,000

401,000
74,000
475,000
58,875
40,000
$ 98,875

__