Continuous Problems of Monroe Work off of chapters 1-4, and 5-6
Conversion worksheet Green shaded cells are from Chapter 5 financial StatementsEnter all amounts as positive numbers. The worksheet is formatted to add debits to assets & expenses and add credits to revenues, liabilities & equity Refr. Account TitlesDebitsCreditsGov'tal Fund Balances Adjustments & EliminationsGovern-mental Funds AdjustedInternal Service FundsBalances for Gov't-wide Stmts DebitsCreditsDebitsCredits Atype debit accounts in this columnDEBITS: type credit accounts in this columnCash830,320830,320830,320 Cash with Fiscal Agent928,000928,000928,000 Investments259,000259,000259,000 Taxes Receivable, net274,000274,000274,000 Interest Receivable, net16,85016,85016,850 Inventories-- Due from State Govt.580,000580,000580,000 Due from Other Funds-- Capital Assets-- both rows -- Expenditures (expenses) Current- General Govt.1,646,9001,646,9001,646,900 Public Safety3,026,9003,026,9003,026,900 Highway and Streets2,471,9002,471,9002,471,900 Sanitation591,400591,400591,400 Health724,100724,100724,100 Welfare374,300374,300374,300 Culture and Recreation917,300917,300917,300 Compensated Absences Exp-- Other Expenditures (expenses)-- - Debt Service Principal800,000800,000800,000 - Interest (expenditure/expense)514,000514,000514,000 both rows - Capital Outlay5,798,1005,798,1005,798,100 - Depreciation-- Other Fin. Uses - Transfers Out1,876,7001,876,7001,876,700 - Total Debits21,629,77021,629,770 CREDITS: Accounts Payable493,400493,400493,400 Due to Other Funds40,20040,20040,200 Accrued Interest Payable-- Bonds Payalbe both rows-- Premium on Bonds-- Compensated Absence Payable-- Advance from Water Utility Fund-- Deferred Inflows: Property Taxes27,50027,50027,500 Accumulated Depreciation both rows-- Revenues- Property Taxes6,657,5006,657,5006,657,500 Sales Taxes2,942,0002,942,0002,942,000 Interest21,22021,22021,220 Licenses & Permits800,000800,000800,000 Miscellaneous350,000350,000350,000 State Grant for Highway Street Expenses1,072,0001,072,0001,072,000 Capital Grant- Gen Gov't332,000332,000332,000 Capital Grant- Public Safety1,320,0001,320,0001,320,000 -- -- Other Financing Sources-- Proceeds of Bonds4,000,0004,000,0004,000,000 Premium on Bonds200,000200,000200,000 Transfers In1,876,7001,876,7001,876,700 Net Position at beginning of year- three rows 1,497,2501,497,2501,497,250 Total Credits21,629,77021,629,770 column totals: debits = credits ??------ CITY OF MONROE WORKSHEET TO CONVERT GOVERNMENTAL ACTIVITIES TO ACCRUAL BASIS Stmt of Activities Program RevenuesNet (Expense) Revenue and Change in Net Position ExpensesCharges for ServicesOperational Grants and ContributionsCapital Grants and ContributionsGovernmental ActivitiesBusiness-Type ActivitiesTotal Functions/Programs Governmental Activities: General Government$ -$ - Public Safety-- Highways and Streets-- Sanitation-- Health-- Welfare-- Culture and Recreation-- Depreciaiton-- Interest-- Compensated Absneces-- Total Governmental Activities------ Business Type Activities Water and Sewer-- Total Government$ -$ -$ -$ -$ -$ -- General Revenues Taxes: Property Taxes- Sales Taxes- Interest- licenses and Permits- Miscellaneous- Total General Revenues--- Change in Net Position--- Net Position, Beginning- Net Position, Ending$ -$ -$ - &14CITY OF MONROE Statement of Activities &11For the year ended December 31, 2015 Stmt of Net Position Governmental ActivitiesBusiness-Type ActivitiesTotal Assets Cash$ - Cash with Fiscal Agents- Investments- Accounts Receivable (Net)- Taxes Receivable (Net)- Interest Receivable- Internal Balances Current-Net the amounts: due from and (due to) other funds Due from Other Governments- Inventories- Internal Balances Long-Term- Restricted Assets- Capital Assets, Net of Accumulated Depreciation- Total Assets$ -$ -$ - Liabilities Accounts Payable- Payroll Taxes Payable- Accrued Interest Payable- Revenue Bonds Payable- General Obligation Bonds Payable- Premium on Bonds Sold- Compensated Absences Payable- Total Liabilities--- Net Position Net Investment in Capital Assets- Restricted- Unrestricted- Total Net Position$ -$ -$ - &14CITY OF MONROE Statement of Net Position &11As of December 31, 2015 Reconciliations CITY OF MONROE Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position As of December 31, 2015 Fund balances reported in governmental funds Balance Sheet Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and therefore not reported in the funds. Amount does not include capital assets of internal service funds (reported in following row). The assets and liabilities of internal service funds are included in governmental funds in the Statement of Net Position. Deferred revenue for property taxes reported in the funds but accrued as revenue in the government-wide statements and added to Net Position. Accrued interest payable is reported as a liability in the Statement of Activities; interest is not accrued in the governmental funds. Bonds payable, not due and payable in the current period are not reported in the funds. Compensated absences, not due and payable in the current period are not reported in the funds. Net Position of Governmental Activities$ - CITY OF MONROE Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities For the year ended December 31, 2015 Net change in fund balances - Governmental funds Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures rather than assets Governmental funds do not report depreciation expense The net revenue of internal service funds is not reported with the governmental funds Property taxes due more than 60 days after year end is not accrued in the governmental funds. Bond proceeds are reported as other financing sources in the governmental funds but as liabilities in the government-wide statements. Repayment of bonds is reported as an expenditure in the governmental funds Interest is not accrued at year end in the governmental funds. Increases in compensated absences, not due and payable in the current period are not reported in the funds. Change in Net Position of Governmental Activities $ - City of Monroe Reconciliation of fund basis to government-wide statements Continuous Problem Continuous Problem – City of Monroe Continuous Problem – City of Monroe to Accompany Essentials of Accounting for Governmental and Not-for-Profit Organizations: Thirteenth Edition Chapters 2 through 8 describe accounting and financial reporting by state and local governments. A continuous problem is presented to provide an overview of the reporting process, including preparation of fund basis and government-wide statements. The problem assumes the government is using fund accounting for its internal record-keeping and then at year-end makes necessary adjustments to prepare the government-wide statements. The problem that follows is presented in the same order as the textbook (beginning with Chapters 3, and 4). Each chapter requires the preparation of journal entries to record the events and transactions of governmental, proprietary, or fiduciary funds. For the General Fund, use control accounts for the budgetary accounts, revenues, expenditures and encumbrances. For all other funds, use separate accounts for each type of revenue and expenditure/expense. At appropriate stages, preparation of the fund and government-wide statements are required. The following funds are included in this series of problems: Governmental Funds · General · Special revenue—Street and Highway Fund · Capital projects—City Hall Annex Construction Fund · Debt service—City Jail Annex Debt Service Fund · Debt service—City Hall Debt Service Fund Proprietary Funds · Internal service—Stores and Services Fund · Enterprise—Water and Sewer Fund Fiduciary Funds · Private-purpose—Student Scholarship Fund · Pension trust—Fire and Police Retirement Fund Chapters 3 & 4 The Balance Sheets of the General Fund and the Street and Highway Fund of the City of Monroe as of December 31, 2016, follow. These (beginning) balances have been entered in the proper general ledger accounts, as of 1/1/2017. CITY OF MONROE General Fund Balance Sheet As of December 31, 2016 Assets Cash $497,000 Taxes receivable $210,000 Less: Estimated uncollectible taxes (37,000) net 173,000 Interest and penalties receivable on taxes 5,200 Less: Estimated uncollectible interest and penalties (950) net 4,250 Due from state government 210,000 Total assets $884,250 Liabilities, Deferred Inflows, and Fund Equity Liabilities: Accounts payable $ 99,000 Due to other funds 27,000 Total liabilities 126,000 Deferred inflows – Property taxes 21,000 Fund equity: Fund balance—assigned (for outstanding encumbrances) $17,000 Fund balance—unassigned 720,250 Total fund balance 737,250 Total liabilities, deferred inflows and fund equity $884,250 CITY OF MONROE Street and Highway Fund Balance Sheet As of December 31, 2016 Assets Cash $23,000 Investments 59,000 Due from state government 107,000 Total assets $189,000 Liabilities and Fund Equity Liabilities: Accounts payable $9,000 Fund equity: Fund balance—assigned for streets and highways 180,000 Total liabilities and fund equity $189,000 3–C. This portion of the continuous problem continues the General Fund and special revenue fund examples by requiring the recording and posting of the budgetary entries. To reduce clerical effort required for the solution use control accounts for the budgetary accounts, revenues, expenditures and encumbrances. Subsidiary accounts are not required. Budget information for the City includes: a) As of January 1, 2017, the City Council approved and the mayor signed a budget calling for $11,150,000 in property tax and other revenue, $9,350,000 in appropriations for expenditures, and $1,700,000 to be transferred to two debt service funds for the payment of principal and interest. Record the budget for the General Fund and post to the ledger. b) Also as of January 1, 2017, the City Council approved and the mayor signed a budget for the Street and Highway Fund that provided for estimated revenues from the state government in the amount of $1,068,000 and appropriations of $1,047,000. Record the budget and post to the ledger. 4–C. Part 1. General Fund Transactions Required: a. Record journal entries for the following transactions for FY 2017. Make any computations to the nearest dollar.