The Town of Drexel has the following financial transactions. Prepare the journal entries necessary for the preparation of fund financial statements.

1. The town council adopts an annual budget for the general fund estimating general revenues of $1.7 million, approved expenditures of $1.5 million, and approved transfers out of $120,000.
2. The town levies property taxes of $1.3 million. It expects to collect all but 3 percent of these taxes during the year. Of the levied amount, $40,000 will be collected next year but after more than 60 days.
3. The town orders two new police cars at an approximate cost of $110,000.
4. A transfer of $50,000 is made from the general fund to the debt service fund.
5. The town pays a bond payable of $40,000 along with $10,000 of interest using the money previously set aside.
6. The Town of Drexel issues a $2 million bond at face value in hopes of acquiring a building to convert into a high school.
7. The two police cars are received with an invoice price of $112,000. The voucher has been approved but not yet paid.
8. The town purchases the building for the high school for $2 million in cash and immediately begins renovating it.
9. Depreciation on the new police cars is computed as $30,000 for the period.
10. The town borrows $100,000 on a 30-day tax anticipation note.

Answers

Answer 1

Answer:

1. A. FUND: GENERAL FUND

Dr Estimated Revenues control $1,700,000

Cr Appr. Control $1,500,000

Cr Est. OFU control $120,000

Cr Budgetary Fund Balance 80,000

GOVERNMENT

No journal entry

2. FUND: GENERAL FUND

Dr Property Tax Receivable $1,300,000

Cr Allowance for uncollectible taxes $39,000

Cr Deferred Revenue $40,000

Cr Revenues-Property taxes $1, 221,000

GOVERNMENT: GOVERNMENTAL ACTIVITIES

Dr Property Tax Receivable $1,300,000

Cr Allowance for uncollectible taxes $39,000

Cr Revenues - Property taxes $1,261,000

3. FUND: GENERAL FUND

Dr Encumbrances control $110,000

Cr Fund-balance: reserve for Encumbrances

$110,000

GOVERNMENT

Commitments are not reported

4. FUND: GENERAL FUND

Dr OFU: transfer out $50,000

Cr Cash $50,000

FUND: DEBT SERVICES FUND

Dr Cash $50,000

Cr OFU: Transfer in $50,000

GOVERNEMNT

No journal entry

5. FUND: DEBT SERVICES FUND

Dr Expenditures - Principal $40,000

Dr Expenditures - Interest $10,000

Cr Cash $50,000

GOVERNMENT

Dr Bonds Payable $40,000

Dr Interest Expense $10,000

Cr Cash $50,000

6. FUND:CAPITAL PROJECTS FUND

Dr Cash $2,000,000

Cr Other Financing Sources-Bond Proceeds

$2,000,000

GOVERNMENT

Dr Cash $2,000,000

Cr Bonds Payable $2,000,000

7. FUND: GENERAL FUND

Dr Fund balance- reserve for Encumbrances $110,000

Cr Encumbrances control $110,000

Dr Expenditure: police vehicles $112,000

Cr Vouchers payable $112,000

GOVERNMENT

Dr Police Cars $112,000

Cr Vouchers Payable $112,000

8. FUND: CAPITAL PROJECTS FUND

Dr Expenditures - Building $2,000,000

Cr Cash $2,000,000

GOVERNMENT

Dr Building $2,000,000

Cr Cash $2,000,000

9. FUND

No journal entry

GOVERNMENT

Dr Depreciation Expense $30,000

Cr Accumulated Depreciation $30,000

10. FUND: GENERAL FUND

Dr Cash $100,000

Cr Tax Anticipation Note Payable $100,000

GOVERNMENT

Dr Cash $100,000

Cr Tax Anticipation Note Payable $100,000

Explanation:

Preparation of the journal entries necessary for the preparation of fund financial statements

1. FUND: GENERAL FUND

Dr Estimated Revenues control $1,700,000

Cr Appr. Control $1,500,000

Cr Est. OFU control $120,000

Cr Budgetary Fund Balance $80,000

($1,700,000-$1,500,000-$120,000)

GOVERNMENT

No journal entry

2. FUND: GENERAL FUND

Dr Property Tax Receivable $1,300,000

Cr Allowance for uncollectible taxes $39,000

(3%*1,300,000)

Cr Deferred Revenue $40,000

Cr Revenues-Property taxes $1, 221,000

($1,300,000-$39,000-$40,000)

GOVERNMENT: GOVERNMENTAL ACTIVITIES

Dr Property Tax Receivable $1,300,000

Cr Allowance for uncollectible taxes $39,000

(3%*1,300,000)

Cr Revenues - Property taxes $1,261,000

($1,300,000-$39,000)

3. FUND: GENERAL FUND

Dr Encumbrances control $110,000

Cr Fund-balance: reserve for Encumbrances

$110,000

GOVERNMENT

Commitments are not reported

4. FUND: GENERAL FUND

Dr OFU: transfer out $50,000

Cr Cash $50,000

FUND: DEBT SERVICES FUND

Dr Cash $50,000

Cr OFU: Transfer in $50,000

GOVERNEMNT

No journal entry

5. FUND: DEBT SERVICES FUND

Dr Expenditures - Principal $40,000

Dr Expenditures - Interest $10,000

Cr Cash $50,000

($40,000+$10,000)

GOVERNMENT

Dr Bonds Payable $40,000

Dr Interest Expense $10,000

Cr Cash $50,000

($40,000+$10,000)

6. FUND:CAPITAL PROJECTS FUND

Dr Cash $2,000,000

Cr Other Financing Sources-Bond Proceeds

$2,000,000

GOVERNMENT

Dr Cash $2,000,000

Cr Bonds Payable $2,000,000

7. FUND: GENERAL FUND

Dr Fund balance- reserve for Encumbrances $110,000

Cr Encumbrances control $110,000

Dr Expenditure: police vehicles $112,000

Cr Vouchers payable $112,000

GOVERNMENT

Dr Police Cars $112,000

Cr Vouchers Payable $112,000

8. FUND: CAPITAL PROJECTS FUND

Dr Expenditures - Building $2,000,000

Cr Cash $2,000,000

GOVERNMENT

Dr Building $2,000,000

Cr Cash $2,000,000

9. FUND

No journal entry

GOVERNMENT

Dr Depreciation Expense $30,000

Cr Accumulated Depreciation $30,000

10. FUND: GENERAL FUND

Dr Cash $100,000

Cr Tax Anticipation Note Payable $100,000

GOVERNMENT

Dr Cash $100,000

Cr Tax Anticipation Note Payable $100,000


Related Questions

As a marketing term, __________ generally includes not only physical goods, but also services and ideas. Multiple Choice marketing invention merchandise product concept

Answers

Answer:

product

Explanation:

The product is an item that the company offer to its customer for buying the product. It is not only the goods that to be kept physically but it also consist of the services and ideas so that it become differentiate with the competitor. The product can be differentiate in terms of cost, quality, quantity, presentable form via having the innovative ideas

So, the 2nd last option is correct

SegR-7268 Corporation has two divisions, East and West. The following information was taken from last year's income statement segmented by division: East Division West Division Sales $3,700,000 $2,300,000 Contribution margin $1,650,000 $1,000,000 Divisional segment margin $1,100,000 $350,000 Net operating income last year for SegR-7268 Corporation was $600,000. In last year's income statement segmented by division, what were SegR-7268's total common fixed expenses?

a. $2,050,000
b. $850,000
c. $2,300,000
d. $1,200,000

Answers

Answer:

b. $850,000

Explanation:

Divisional Segment Margin = $1,100,000 + $350,000

Divisional Segment Margin = $1,450,000

Net Operating Income = $600,000

Common fixed expenses = Divisional Segment Margin - Net Operating Income

Common fixed expenses = $1,450,000 - $600,000

Common fixed expenses = $850,000

So, SegR-7268's total common fixed expenses will be $850,000.

Quantum Inc. has warrants outstanding that allow the holder to purchase 1.5 shares of stock per warrant at $30 per share (exercise price). Thus, each individual share can be purchased at $30 with the warrant. The common stock is currently selling for $36. The warrant is selling for $12.

Required:
a. What is the intrinsic (minimum) value of this warrant?
b. What is the speculative premium on this warrant?
c. What should happen to the speculative premium as the expiration date approaches?

Answers

Answer:

A. $9.00

B. $3.00

C. Decrease

Explanation:

a. Calculation to determine the intrinsic (minimum) value of this warrant

Using this formula

I = (M – E) × N

Where,

I represent Intrinsic value of a warrant

M represent Market value of common stock

E represent Exercise price of a warrant

N represent Number of shares each warrant entitles theholder to purchase

Let plug in the formula

I=($36 – $30) *1.5

I=$6*1.5

I = $9.00

Therefore the intrinsic (minimum) value of this warrant is $9.00

b. Calculation to determine the speculative premium on this warrant

Using this formula

S = W – I

Where,

S representSpeculative premium

W represent Warrant price

I represent Intrinsic value.

Let plug in the formula

S=$12-[($36 – $30) *1.5]

S=$12 – $9

S = $3.00

Therefore the speculative premium on this warrant is $3.00

c.What should happen to the SPECULATIVE PREMIUM as the expiration date approaches is for it to DECREASE and thereby approach $0.

Selena Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: The activity rate under the activity-based costing system for Supporting Customers is closest to: Multiple Choice $18.53 $46.33 $21.67 $65.00

Answers

Answer:

the  activity rate  for Supporting Customers is $21.67

Explanation:

The computation of the activity rate under the activity-based costing system for Supporting Customers is shown below;

= Estimated overhead cost ÷ Total expected activity

= $26,000 ÷ 1,200

= $21.67

hence, the  activity rate  for Supporting Customers is $21.67

Therefore the third option is correct

The price of the stock at the beginning of 2018 was $56.81 and you sold the stock at $68.14 at the end of the year. What is the dividend yield (use your answer from 3a above), capital gain(loss), and total percentage return

Answers

Question Completion:

The total dividends paid is $1,743,400 and the outstanding shares are 1,300,000.

Answer:

a. The dividend per share = $1.34

b. The dividend yield = 1.97%

c. The capital gain = $11.33

d. The total percentage return = 22.3%.

Explanation:

a) Data and Calculations:

Dividends paid = $1,743,400

Outstanding shares = 1,300,000

Dividends per share = $1.34 ($1,743,400/1,300,000)

Dividend yield = Dividend per share/Stock price

= $1.34/$68.14 = 1.97%

Capital gain = $11.33 ($68.14 - $56.81)

Total return = $12.67 ($11.33 + $1.34)

Total percentage return = Total return/Beginning Stock Price * 100

= $12.67/$56.81 * 100

= 22.3%

Larkspur, Inc. reports net income of $89,770 in 2017. However, ending inventory was understated by $7,100. Collapse question part (a) What is the correct net income for 2017

Answers

Answer:

$96,870

Explanation:

The understatement of ending inventory causes the cost of goods sold to be overstated and the gross and net income to be understated by the same amount.

If the 2017 ending inventory was understated by $7,100 then the correct net income figure for 2017 will be $7,1000 more that what was reported.

Therefore, 2017 corrected net income

= $89,770 + $7,100

= $96,870

can you have a sloth as a pet

Answers

Answer:

in most places yes

Explanation:

they are hard to care for tho

Answer:

i mean Ig it depends on if you need a license or have to pay alot for it

have a good day :)

Explanation:

Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a 15% sales commission on any merchandise sold. During the year, Mogul ships inventory with a cost of $100,000 to Ski Outfit. By the end of the year, $76,000 of the merchandise has been sold to customers for a total of $105,800. What amount of inventory will Mogul report at year end

Answers

Answer:

$24,000

Explanation:

According to the consignment accounting, it States that any inventory sent on consignment by the consignor to the consignee, belongs to the consignor until the inventory is sold by the consignee.

Regarding the above, Mogu company sent inventory costing $100,000 and out of this, only $76,000 has been sold. The remaining inventory still belongs to the consignor and the amount of this inventory is;

$100,000 - $76,000 = $24,000

Therefore, Mogul would report $24,000 worth of inventories at year end.

Joint ventures offer low potential for leveraging a firm's existing competencies because they typically entail a short-term relationship between two or more firms.
A. True
B. False

Answers

Answer:

B. False

Explanation:

The main purpose of the joint venture is to help two or more companies so that they are in the position to gain the competitive advantage. So the potential for firm leverage that is existed would be high instead of low due to this reason also

So as per the given situation, the option b is correct

Hence, the option a is not correct

There are different types of business. Joint ventures offer low potential for leveraging a firm's existing competencies is a False statement.

A joint venture is known as when two or more businesses gather their resources and expertise together to achieve a set goal.

It is also called a partnership between 2 or more firms where there is significant equity stake by the partners and often resulting in the creation of a new business entity.

Joint ventures uses  a good amount of equity investment from each partner and can lead to the establishment of a new separate entity.

Learn more from

https://brainly.com/question/3433553?source=archive

Imagine you have $30 to spend. You are thinking of buying new soccer shoes because yours
are worn out and a new video game. Which of these do you want, and which of these do you
need? Explain your answer.
Plz no links to answer

Answers

Answer:

video game

Explanation:

because I don't go outside, I'm a gamer

An outside supplier has offered to make the part and sell it to the company for $29.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $25,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be:

Answers

Answer:

-$79000  

Explanation:

The computation of the annual financial advantage (disadvantage) is shown below;

Particulars                           Per unit               Total 13000 units

                               Make               Buy          Make                Buy

Direct materials    2.90                                  37700  

Direct labor           7.50                                  97500  

Variable manufacturing

overhead               8.00                                  104000  

Supervisor's salary 3.40                                   44200  

Contribution margin                                         25000  

Purchase cost                          29.80                                  387400

Total                                                                   308400 387400

Now the finacial disadvantage is  

= 308400 - 387400

= -$79000  

Given the following cash flows for a capital project for the Witter Corp., calculate its payback period and discounted payback period. The required rate of return is 8 percent. Cashflows: Year 0 = -50,000; Year 1 = 15,000; Year 2 = 15,000; Year 3 = 20,000; Year 4 = 10,000; and Year 5 = 5,000. The discounted payback period is

Answers

Answer:

4.01 years  

Explanation:

The computation of the discounted payback period is shown below;

Given that

Required rate of return is 8%

Cashflows: Year 0 = -50,000;

Year 1 = 15,000;

Year 2 = 15,000;

Year 3 = 20,000;

Year 4 = 10,000;

and Year 5 = 5,000

As we can see from the attached table that approx in 4 years it could cover $49,975

So

the discounted payback period is

= 4 years  + ($50,000 - $49,975.91) ÷ $3,402.92

= 4.01 years  

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