Governmental Accounting Problem
Ash City fiscal year end Dec 31, 2019, had following transactions during 2019.
- On Dec 31, 2018 trial balance, Ash had property taxes receivable, delinquent of $640k and deferred revenues, property taxes of 240k. On Jan 1, 2019, Ash levied property taxes of 5 million dollars, of which it estimated that 40k would be uncollectible. During the year, Ash collected cash of 640k from delinquent property taxes receivable from 2020 tax levy and 4.2 million dollars from 2021 tax levy. It expected it would collect 500k in the first 60 days of year 2020 and remaining 260k in April of 2020.
- Ash City received an expenditure-driven grant from fed govt to provide public concerts to underserved communities. The grant contained no times limits, but the city must sponsor "qualifying" concerts as an eligibility requirement to be reimbursed for concert costs . The city will be reimbursed for each dollar it spends qualifying concerts up to a max of 60k. During 2019, the City incurred 65k of cash expenditures in the qualifying concerts.
- Ash city uses the purchase method to account for the acquisition of supplies. At the end of year 2018, the supplies inventory was valued at 50k. During year 2019, Ash purchased 200k of supplies. At the end of year 2019, supplies inventory was valued at 65k.
- Ash city General Fund also had the following transactions:
i. it purchased a fire engine at cost of 80k
ii. it sold a police vehicle, originally cost 30k, for 5k
iii. it received a bill for 25k from Motor Pool Internal Service Fund for motor vehicle servies.
iv. City's Mass Transit Authority gave 50k cash to Rainbow City General Fund since it had positive operating results this year.
Answer the following questions and please show your work, show the journal entries:
- The amount of property taxes revenue reported on the 2019 General Fund operating statement would be:
- Amount of Deferred revenues - property taxes reported on Dec 31 2019 General Fund balance sheet would be:
- Amount of Intergovernmental revenues - grants reported on 2019 General Fund operating statement would be:
- Amount of expenditures - supplies reported on 2021 General Fund operating statement would be:
- Amount of Nonspendable fund balance reported on year-end General Fund balance sheet would be:
- Amount that should be included as Other financing sources on 2019 General Fund operating statement would be:
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