City of Monroe

City of Monroe

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, 2013, follow. These (beginning) balances have been entered in the proper general ledger accounts, as of 1/1/2014.

CITY OF MONROE

General Fund Balance Sheet As of December 31, 2013 Assets

Cash | | $490,000 |

Taxes receivable—delinquent | $210,000 | |

Less: Estimated uncollectible delinquent taxes | (21,000) | |

| | 189,000 |

Interest and penalties receivable on taxes | 5,200 | |

Less: Estimated uncollectible interest and penalties | (950) | |

| | 4,250 |

Due from state government | | 210,000 |

Total assets | | $893,250 |

Liabilities:

Liabilities and Fund Equity

Accounts payable | $104,000 |

Due to other funds | 27,000 |

Deferred revenues—property taxes | 19,000 |

Total liabilities | 150,000 |

Fund equity:

Fund balance—assigned

(for outstanding encumbrances) | $12,000 | |

Fund balance—unassigned | 731,250 | |

Total fund balance | | 743,250 |

Total liabilities and fund equity | | $893,250 |

3–C. The General Fund needs to record 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, 2014, the City Council approved and the mayor signed a budget calling for $10,750,000 in property tax and other revenue, $9,255,000 in appropriations for expenditures, and $1,280,000 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.

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4–C. Part 1. General Fund Transactions

Required:

a. Record journal entries for the following transactions for FY 2014. Make any computations to the nearest dollar. Journal entry explanations are not...