ACCT567 Case Study I

The General Fund of Middleville has presented you with the following trial balance as of June 30, 2011.

DebitsCredits

Cash$ 40,000

Taxes Receivable- Delinquent142,000

Estimated Uncollectible Taxes- Delinquent9,100

Interest and Penalties Receivable32,000

Vouchers Payable24,000

Budgetary Fund Balance-Reserve for Encumbrances10,200

Fund Balance_________170,700

$ 214,000$214,000

The information that is being presented to you pertains to the transactions for the city of Middleville for the fiscal year ended June 30, 2012.

1.The following budget was adopted by the city council:

Estimated Revenues:

Property Taxes$ 650,000

Fines and Penalties44,000

Licenses and Permits150,000

Federal Grant85,000

929,000

Appropriations and Other Financing Uses

Public Safety402,000

General Government263,000

Public Works102,000

Parks and Recreation92,000

Transfers Out34,000

893,000

2.Encumbrances outstanding at the end of the year were re-opened.

3.Property taxes of $ 660,000 were levied. It is estimated that 2.5% of the property taxes levied are expected to be uncollectible/

4.Purchase orders issued for the 2012 fiscal year were as follows:

Public Safety, $ 395,000; General Government, $ 259,000; Public Works, $ 100,000; Parks and Recreation, $ 98,000.

5.Cash collected for the Federal Grant from the Federal Government, $ 94,000.

6.Cash collected and transferred in as follows:

Fines and Penalties43,000

Licenses and Permits164,000

7.Cash collected on property taxes were as follows: Current taxes, $559,000, Delinquent Taxes, $ 41,000 and $ 22,000 of interest and penalties were collected.

8.Purchase orders issued in 2012 in the following amounts were filled in at the following amounts:

EstimatedActual

Public Safety$ 395,000$ 393,600

General Government$ 259,000$ 258,200

Public Works$ 100,000$99,400

Parks and Recreation$98,000$97,500

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$ 852,000$ 848,700

9.Vouchers paid amounted to $ 840,000 and the transfer out to the Debt Service Fund, $34,000.

10.Please reclassify the Taxes Receivable –Current and Estimated Uncollectible Taxes- Change from Current to Delinquent.

Instructions:

a.Prepare journal entries for the fiscal year ending 2012.

b.Prepare closing entries.

c.Prepare a General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ended June 30, 2012.

d.Prepare a General Fund Balance Sheet as of June 30, 2012.

Project will be done in Excel and will contain formulas .

Calculations for all parts should be organized and correctly labeled.